We all already know how Apple wants to promote a range of new services from this year, in an attempt to diversify the source of their income and thus stop depending on the iPhone so much. But Goldman Sachs reminds us of a very relevant fact about this: right now a fifth of the income that Apple collects from its division comes from Google .
Yes, from Google. And to explain it is simple: for iOS devices to have Google’s search engine as a default engine, the company pays Apple a million dollars. Five months ago that sum was estimated to be no less than $9 billion, a sum of money that cannot be taken lightly. GoldMan Sachs is now rounding up that figure to $9.5 billion.
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A subscription to master them all
This figure makes Goldman Sachs believe that Apple has to study very well its steps to enter to compete in markets such as a catalog of streaming series or a news subscription service, because if the income from these services become more important also collect this “tax” that Apple charges Google annually.
And a proposal launched by the great consulting firm is precisely something that was put on the table a year ago: join several subscriptions in one . They call it, very appropriately, “Apple Prime” in relation to the Amazon Prime subscription that brings together several different Amazon services in a single annual fee.
Thus, instead of paying separate fees for series, magazines, games, storage space and music we would pay only a monthly fee to link several or all of these services. The idea is logical, especially so that the user is not over-subscribed and is not too selective with them. A ” all for all year “, as is the case with Amazon Prime, could be more convincing.
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But of course, all the users of Apple devices need to be encouraged to pay more monthly fees when we already have many people subscribed to Netflix (which is gradually increasing in price), to Apple MusicSpotify, to that same Amazon Prime and to other services. And in addition other very powerful subscription services are coming that will make for some very tough competition, such as the Disney catalog (which will have the Star Wars universe live-action series).
So yes, I think Goldman Sachs is right to advise Apple to simplify the whole range of subscription services, both those that already exist and those that are yet to come. The list of users is not infinite , and no one can subscribe to everything that will be available by 2020. We’ll see what all the major technology and entertainment companies are up to as 2019 progresses.
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