Today, Apple announced 3 new subscription services. These services are a news service, gaming subscription, and a new TV subscription service. In addition to this, Apple has also announced a new credit card that they are working on in collaboration with Goldman Sachs and Mastercard. People speculate that the reason Apple is introducing all of these services is iPhone sales are going down and they want to compensate for all of the profit that is being lost. During the event in which all of these services were announced, Tim Cook, the CEO of Apple, stated, “We’ve also been creating a growing collection of world-class services, and that’s what today is all about.”
Apple’s news service is called Apple News+. This service will be usable in the form of an app and will provide you with a subscription to over 300 magazines and news sources for only $9.99 a month. Some of these magazines and news sources include National Geographic, the LA Times, Essence, theSkimm, and many others. During the event, Apple claimed that if a customer was to subscribe individually, meaning without their app, to all of the magazines and news services they offer in their app, it would cost over $8,000 every year; Apple’s $9.99 a month fee is a lot more affordable. According to Apple, this new service will become available with a software update and the first month of use will be free. At their event, Apple said that they are launching Apple News and News+ in not only the US but also in Canada, in English and French, with the hopes of expanding to the UK and Australia.
The gaming subscription that Apple announced is called Apple Arcade and will be used from the App Store and will allow users to have access to numerous games in a special tab within the App Store. This will require users to purchase a subscription; unfortunately, pricing is not currently available. Arcade is going to be available in more than 150 countries and will be created in partnership with many game developers such as Gameloft, Sega, Lego, Cartoon Network, Disney, and more. Apple claims there will be over 100 new games available on its service at launch. There have been 2 additions announced for Apple Pay. The smaller of these additions made paying for transportation in the cities of Portland, Chicago, and New York City possible via Apple Pay.
The most important addition is Apple Card. Apple Card is a new credit card that Apple created in partnership with Goldman Sachs and Mastercard. At the event, Apple demonstrated the integration of Apple Card into the Apple Wallet app that allows you to sign up for a card from your iPhone and not have to wait for the physical card to arrive. All of the information, such as your card number, will be provided on the app along with information about where you are spending money and how much you are spending. During the event, Apple assured the public that they will not be tracking spending from Apple servers; rather, they will use on-device features, such as Apple Maps, to track spending. They are also offering a physical version of the card, but it does not have the card number on it, which means you have to look at the information from the app. This card will be available on all of your Apple devices that are logged into the same account that you signed up with. Apple also promises customers that there will be no late, annual, international, or over-limit fees. In addition to this, they promise that there will be 1-3% daily cashback if you use the card. While interest rates for the card are not currently available, Apple claims that they will be low. Expert analysts believe that these new subscription services, in addition to App store profits and licensing charges, will be the bulk of Apple’s revenue for the near future.