Technology

Apple is preparing subscription bundles to increase recurring revenues

Initially dubbed Apple One, the new bundles will try to emulate the success of Amazon Prime in loyalty and consumer engagement

REUTERS/Gonzalo Fuentes
  • A basic package will include Apple Music and Apple TV+, while other tiers will add Apple Arcade, Apple News+ and iCloud services;
  • Sales in Apple’s services segment rose 14.8% to $13.16 billion, in the recently reported third quarter.

Apple is readying a series of subscription bundles that will let customers sign in for several of the iPhone maker’s digital services at a lower monthly price, Bloomberg News reported on Thursday.

The bundles, dubbed Apple One inside the Cupertino, California-based company, are planned to launch as early as October alongside the next iPhone line, the report said, citing people with knowledge of the effort.

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The bundles are designed to encourage customers to subscribe to more Apple services, such as Apple Music and Apple TV+, which will generate more recurring revenue, according to the report.

A basic package will include those music and television platforms, while a more expensive variation will have those two services and the Apple Arcade gaming service. The next tier will add Apple News+, followed by a pricier bundle with extra iCloud storage for files and photos, informed Bloomberg.

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The goal will be to offer groups of services at lower prices than would be charged if consumers subscribed to each offering individually. The model that will try to emulate the loyalty and consumer engagement Amazon has achieved through its Prime subscription program, which combines free and expedited shipping on its e-commerce platform with video streaming and many other services for an annual or monthly fee.

Sales in Apple’s services segment rose 14.8% to $13.16 billion, in the recently reported third quarter. Apple did not immediately respond to Reuters‘ request for comment.