What to Expect – Motley's Fool

Monday, the technology giant Apple (NASDAQ: AAPL) sent invitations to a media event. "It's the hour of the show," read the invitations. The slogan of the event suggests that Apple will unveil its long-awaited subscription television service. The launch of a potential television service would represent another way for the tech giant to strengthen its service business, as its iPhone unit sales seem to have peaked. According to rumors, a TV subscription might not be the only service unveiled at the March 25 event.

Investors will closely watch the event to see if Apple's new services can help the company's second-largest segment to maintain its momentum.

Source of the image: Apple.

Could Apple launch two new services?

Given the obvious slogan of Apple for the event, a new TV service is almost certain. Reinforcing this hypothesis, the company would work on more than two dozen original shows for the service. Little is known about the service, other than the original content and the resale of premium subscription services in the form of add-ons in the same way as Hulu and Amazon make.

Even though Apple is expected to pull the curtains out of its television service during the special event planned later this month, investors should not be waiting for it to be launched for the moment . In fact, "he can not throw before summer, nor even fall," according to Variety.

In addition to a TV service, Apple would launch a new subscription option to its Apple News app, allowing customers to access multiple magazines and newspapers for a monthly fee.

If the company bundles these services convincingly, both services could be a boon to Apple. The Apple News technology giant's application has 85 million active users per month, according to an update released earlier this year. In addition, Apple has demonstrated the willingness of its customers to pay for an Apple brand subscription service with over 50 million Apple Music subscribers.

A key catalyst

Apple has given investors good reason to draw attention to the company's services sector earlier this year when Chief Executive Officer Tim Cook told investors in a letter to shareholders that his earnings from the first quarter would be significantly lower than initially forecast. IPhone unit sales, especially in China, have not met expectations, Cook said.

If the iPhone fails to provide its services, Apple's service activities represent the best option for investors and constitute the next pillar of business growth. Services account for 15% of Apple's last 12 months business turnover, making it the second largest segment of the company. In addition, the sector is growing rapidly, with a turnover of the last twelve months up 27% over the previous year.

For Apple to maintain its strong growth in services, the technology giant will need to continue to invest in its current service offerings while bringing exciting new services to the marketplace.

The Apple event will be held on March 25 at 13 hours. EDT at Steve Jobs Theater of Apple in Cupertino, California. Although services are probably the main focus of the event, it is still possible that the technology giant uses the platform as an opportunity to also unveil a new product. But investors should not hope.

John Mackey, CEO of Whole Foods Market, an affiliate of Amazon, is a board member of The Motley Fool. Daniel Sparks has no position in the mentioned actions. The Motley Fool owns shares and recommends Amazon and Apple. The Motley Fool offers the following options: Long Calls from $ 150 to January 2020 for Apple and short calls from $ 155 to January 2020 on Apple. Motley Fool has a disclosure policy.