Where will Apple be in a year? – The crazy fool

Apple (NASDAQ: AAPL) wants to be a service company.

It's not that the company plans to remove hardware, but has introduced a host of new service-based offerings to support its devices. The company's new video streaming, gaming and news products will join its highly successful Apple Music service in the coming months.

The launch of these products by subscription, associated with an Apple credit card, is supposed to modify the distribution of the revenues of the company, making it less dependent on the new technology affected.

Of course, there is no guarantee that these offers will work. In fact, it's fair to say that all four are facing a tough battle.

Apple and its CEO, Tim Cook, are planning four new service-based offerings. Source of the image: Apple.

What did Apple do?

In an introductory speech, Apple introduced its four new service-oriented efforts. The company has introduced the following products and services, although details for some are rare:

• Apple TV +: This is a subscription service in the style of Netflix. Apple presented creative partners (Oprah Winfrey, Steven Spielberg, Jennifer Aniston, Reese Witherspoon, Octavia Spencer, J.J. Abrams, etc.), but did not share potential prices.
• Apple Arcade: A games subscription service that will have more than 100 original titles. "Apple Arcade will give customers the freedom to try any game from its collection of handpicked titles that are quite-able to play; have no advertising, no follow-up advertising or any additional purchase, and respect the privacy of the user ". Once again, no awards have been announced.
• Apple News +This $ 9.99 monthly membership allows members to access more than 300 magazines and content from a handful of other providers.
• Apple Card: A no-cost credit card designed to fully integrate into an iPhone. The card offers cash back on some purchases and "Apple Card's goal is to provide some of the lowest interest rates in the industry.If a customer misses a payment, it will not be taxed. penalty, "said the press. Release.

It's easy to see why Apple adds these services, but it's harder to see how any of them will become a major success. Apple TV + may have leading content creators, but so do a handful of other streaming services already established. Why pay Apple when you already have Netflix, HBO and who knows what else?

Apple News + offers added value to magazine readers, but is it really a large audience? It seems better if it is a niche product for an older audience – if there is a market.

Apple Arcade is just as risky. Yes, games are a popular download on the iTunes Store, but serious players do not play on phones or tablets. Yes, this service avoids having to pay for some games and removes micro-payments from the game, but this may not be enough to win a wide audience.

An Apple credit card has a certain appeal, but it is not very different from other options. This makes sense for brand enthusiasts who purchase new equipment each year, but this is not a much better offer for the general public.

Where will Apple be in a year?

That's an approximation, but in a year, Apple will air some well-reviewed shows on Apple TV +, but will not count any important members. This is not a comment on the potential quality of the service but a reflection of the market.

In the coming months, Apple will launch its service and Walt Disney will also enter the streaming entertainment space. We have unknown issues from branded suppliers. The other has Wars of the stars, Marvel, Pixar and decades of programming for kids, keep Apple from gaining a foothold in this space.

News + and Arcade are simply not mass products, and you can say the same about the company's self-tagged credit card. These three factors can help the bottom line only because the costs are low. Apple TV +, however, will run out of resources for years, if not decades, as the company invests in the creation of programs that allow consumers to join another streaming service.

In a year, Apple will look a lot like the current situation, but with perhaps less optimism about its ability to create a new, important source of revenue. As part of a larger transformation, these measures may be important, but they are disappointing in themselves.