Apple Launches Slew of Subscription Services Amid Pivot From Hardware
Investing.com - Apple (NASDAQ:AAPL) made a big bet on services unveiling a host of subscription services across multiple sectors including gaming, news, payments and original content as the tech giant seeks to move away from hardware amid dwindling iPhone sales.
Apple had a fairly muted reaction to news, with shares down 1.8%.
Apple announced its streaming TV service, dubbed Apple TV+, which will be ad-free and include the tech giant's original content as it seeks to complete with Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN). Apple TV+ will bundled with content from other providers including HBO, Showtime and CBS All Access. It will allow DirectTV and Hulu users to access channels through Apple TV app.
Apple TV + will be an ad-free service with exclusive content and be available in 100 countries from this autumn, the company said. The company has yet to reveal pricing for its streaming TV services.
The tech giant also teased a new gaming service, "Apple Arcade," across mobile, desktop and home devices. The gaming service will include more than 100 new and exclusive games. Games will include Sonic and Zelda and will be available this autumn in more than 150 countries, the company said. The company has yet to confirm pricing.
"IOS has become the largest gaming platform in the world," said CEO Tim Cook.
Gaming stocks, including Take-Two Interactive Software (NASDAQ:TTWO), Electronic Arts (NASDAQ:EA) and Activision Blizzard (NASDAQ:ATVI) fell on the news.
AppleNews+, a new paid tier news service, will include several magazines like The New Yorker, Time Magazine and National Geographic. The news service will available from today will cost $9.99 and be launched in the U.S. and Canada in English and French. Later this year it will be coming to Australia and Europe, starting with the U.K., the company confirmed.
Apple also unveiled Apple Card, a payment service, that will launch in the summer as part of an effort to replace the wallet. The tech giant teamed up with Goldman Sachs and Mastercard to create Apple Card, which will be globally accepted.
Apple's big bet on subscription services come as tech giant has seen dwindling sales for its latest suite of iPhones, which makes up about 60% of total revenue.
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