Which Apple Services are Flopping?

by birtanpublished on November 26, 2020

Oh tim cook's investment into services may not be paying off as much as they would like so they might have to break into the piggy bank here because what apple services really are doing that well and which ones aren't doing that well bloomberg did a report on it and i wanted to share my thoughts on it as well let's begin all right so first off may i just say i want to bring this up because i normally don't get things right but i totally called the apple news plus flop thing okay as soon as i saw that i was like wait a minute

All right you're gonna ask me for 10 bucks a month 10 whole dollars the price of apple arcade and tv plus combined or the price of just a regular apple music subscription just so that when i'm reading the news some gifts can load okay some of the pictures can move a little bit yeah i knew from the get-go that was not gonna last i know there's some people that like subscribing to different news agencies and having those all correlated into one collection uh okay some of you are into that but in today's

World of twitter and you know apple news non plus apple news minus data in information and what's going on in the world is all free you can find that stuff at no additional charge and yeah there might be some ads here and there but i really don't think 10 bucks a month is worth all of the journalists that they had bundled in that program some of you may disagree but i just did not see how that was going to work out and apparently other journalism

Companies thought the same way because the new york times has now pulled out of apple news plus which can't be good in fact i'm curious if this is going to cause some type of domino effect if the new york times is pulling out who else is going to start pulling out from apple news plus and then is apple going to have to lower the price of it more i mean even after they launched their initial 30-day trial a few months into the service being available they started doing

90-day free trials which typically if they're giving away the service for that long for free it's because they're kind of desperate and hoping you're going to sign up for it and then maybe forget about it down the road and then accidentally keep paying for it maybe that's what they were hoping for i mean apple music from the beginning had 90 day free trials but to be fair i don't think apple music is one of the services that flops because it's a pretty decent deal if you like to listen to a lot of music

It's simple it's like okay you pay 10 bucks a month and now you get all of the music all the songs that have ever been recorded that you could ever think of you can now just play and download whenever you want there's no ads it's fairly simple and i can see why that would end up being popular i've been subscribed to it ever since the day it was available and i've very much enjoyed it so i can see why apple music is doing well but i guess that's not really in the bunch of new services apple did at their last march

Event when i say last march event i'm referring to 2019 because of course there was no march event this year okay you got to keep up you know pick up the speed when it comes to apple arcade it's very tough to know exactly what they're planning but i imagine it's likely not going super well if they're already having to rethink their approach when it comes to games on that platform because we've already seen that apple is starting to cancel a few games on this service and introduce new ones because apple feels

Like they're not having engaging enough video games that can encourage people to continue paying for the service it sounds like they're kind of struggling to get people to keep playing the apple arcade games after their free trial expires which you know i guess a lot of people were probably in that department especially the tech community here they're like okay i'll try apple arcade for 30 days you find a couple games you're like yeah that's pretty good and then once apple's like so so five bucks a month yeah five dollars

A month can you do this everyone's like i mean i don't like it that much i mean some of these games are fun five bucks a month yeah i don't think so definitely not for me you know there was some fun games on there but i honestly remember playing a lot of them and thinking man this would be nice if i could just pull this out of apple arcade because you know mini motorways and that kind of thing they're fun and you can play them a lot but the idea of spending 50 a year on a mobile game like that it's

Almost kind of like you know what i'll just take the ads you know just put some ads in that game and i'll play it for free i get that defeats the whole purpose of apple arcade but they also started letting people have a second month of free trials which i guess kind of makes sense if you're introducing new games and getting rid of old ones you're like hey the free trial you got earlier this year that's not going to be the same as the free trial we have now so can you please uh uh

Try it again you know you'll like these games more for sure this time the other big service apple launched was tv plus and it's kind of hard to tell if the media attention the service is getting is resulting in a ton of revenue generated because obviously when apple unveiled the iphone 11 they said by the way if anybody buys a new mac or a new ipad or a new iphone or something like that then you get a full free year of tv plus okay that means that a lot of people weren't even paying for the service and yet they're still

Using it so it's honestly in the first year of tv plus being around kind of difficult to tell how well it is doing five bucks a month when it comes to streaming services is actually pretty competitive but the back catalog for tv plus is still pretty dry though the good news is all the shows on tv plus appear to be apple originals which means they can't be taken away so i guess apple is playing the long term game here and a lot of the shows have been award-winning so they've gotten a lot of

Emmys and nominations and that kind of thing so everybody knows about the shows on apple tv plus but it's hard to know exactly if that's directly correlating with a lot of people subscribing to it the bernstein report estimated that tv plus was doing about half as well as apple music when it comes to revenue which i have a hard time believing because apple music on average is you know like 10 bucks a month and tv plus is 5 bucks a month so the idea that the number of people subscribing to tv plus is the same number of people subscribing

To apple music and these people aren't using the free trial you know they're actually paying the five dollars a month for tv plus i have a hard time agreeing with i have a hard time believing this estimation chart which could probably never be proven wrong or right because apple just likes to bunch all of their services revenue into one category so we don't really know which services are flopping and which ones aren't but i do find it hilarious that the second highest revenue model is from licensing you know like their google search deal and that kind of thing that's

Outperforming all of these services apple loves talking about just google being like hey keep our search engine on safari boom that's all the money generated from services but apple will claim it's because of you know arcade and news plus and that kind of thing the apple card as much as i like it and you guys seem to enjoy my review of it definitely doesn't seem to be a huge money maker for apple apparently from the last update we got goldman sachs ran out around two billion dollars worth of credit lines which

In the credit card world is not an insane amount so i'm not exactly sure what the overhead is for the apple card but we know that the amount of credit lines goldman sachs was running are not anything to get excited about it's not anything major and we definitely see apple pushing the apple card pretty heavily with adding more things to support three percent cash back they're pushing financing options with all the apple hardware so there may be a huge uptick in apple card users

Since all of these new features have been added and personally i think of all the services they launched last year the apple card is the one that should probably do the best because it's free you get cash back out of it and there's a lot of handy financing options through apple's hardware if you do have an apple card so i don't know why that can't do better but maybe you know getting a lot of people to sign up doesn't necessarily mean making a huge amount of revenue off of them and it's also not a shock given the apple card

Makes it painfully easy to know when you need to make a payment how to avoid getting interest charges and if you design a card that makes it really hard to carry a balance on and have interest on then how is apple to make much money off of it in the first place right that's kind of how a lot of credit card companies make money off their credit cards is by you know encouraging you to and don't worry about it just do a minimum payment don't even really think about it and

Then people end up paying interest charges on that so basically in my opinion it sounds like apple arcade and apple news plus are probably performing the weakest and given they didn't really talk much about them at the last apple event i imagine the services are not doing as well as they would have hoped apple tv plus apple just likes to pride themselves on and by just saying like oh these shows are filmed so well and they're getting so many awards and we're just a major player

In the tv show business because of how important these movies and shows are when in reality revenue wise you know a lot of people could not be paying for it in the first place apple card sounds like an exciting little side project for apple that might not be that profitable in the first place so yeah honestly i know tim cook is trying to reorient apple as more of a services company because they know that survives the long haul more so than hardware because as iphones and ipads and macs have smaller changes year over

Year it's going to be harder and harder to rely on just hardware sales but frankly it seems like with these new services that's not exactly going to be changing it sounds like for the next few years at least hardware is still definitely going to be their bread and butter that's what they're going to be relying on and they're definitely going to have to rethink how they handle a lot of these services in my opinion you should just scrap news plus i don't think there's a low enough price

Point that it would be worth it i wouldn't pay for apple news plus if it was one dollar a month and i think that there's a growing number of people that are just like i'll just get my news on twitter and apple news minus or whatever i'll just get it for free because moving pictures and paying for dedicated articles that are special because they cost money i don't see that being incredibly popular in the future so i would scrap that one maybe make apple arcade more enticing by

Including it for free for a year with new apple hardware they could do what they did with tv plus and that way you get a bit more addiction to people with games on there and then they feel like they can keep paying for it but i'm no expert what do you guys think apple should do feel free to hit me up over on twitter or my discord we can chat more about these flopping services over there this is your app sheet here i'll see you the next

Related Videos

- Welcome to Apple. Your call may be recorded for quality assurance. So tell me, how can I help you today? - My iPhone 7 is making weird noises. - And does it g...
- Hey, what's up guys, Keaton here. So, right in front of me I have two iPhone 7 Pluses. Now, look closely, and let me know in the comments: Do you think ph...
Hey guys Mike here the Detroit Borg with a look at the LG G pad 8.3 8.3 is these size eight point three inch LCD IPS display so this is LG's return to the t...
Hey guys Mike here the Detroit Borg with a quick look at the official wireless charger for the Nexus 4 5 and 7 this is sold in the Google Play Store for $49.99 ...
Hey guys Mike here the Detroit Borg with a look at the Microsoft Xbox one so one week following the ps4 Xbox one is finally available this is the day one editio...
Hey guys Mike here the Detroit port with a quick video that you guys requested this is the iPod Touch 5th generation in space gray so for 2013 the iPod Touch th...
Hey everyone welcome back to the channel what we have right here is a brand new g-shock watch with google's wear os which means that for the first time ever...
I mean we can take them it's just got to be fast okay sure that's what she said Oh God this next to Center spring all right this we could start to the b...
That's good timing I know there's a live thing oh I guess I'm supposed to do the thing this week aren't I yes haha i typed android balance calm ...
Hey guys what's going on is Carl here back with another episode we are back to another Tech Travel Pack it is July my last episode was in June when I was ou...
Hey guys what is going on is Carl here back with another episode this one is very special we are here we've get out season three and before we kick things o...
Hey guys what's going on it's Karl here back with another episode this one just like most of them on the channel has been requested a lot of you are ask...
What's up everybody this is Danny and last week I was at the Charlotte Motor Speedway checking out NASCAR for the very first time and it was a pretty cool e...
What's up everybody this is Danny and if you're in the market for an Android phone right now this video is probably what you've been waiting for the...
What's up everybody this is Danny and iOS 9 beta is out so I'm gonna show you what the best new features are and let's just go ahead and get right i...
Hi guys is Marcus from Tokyo silence Tech and that finally I've got to experience triple screen gaming and I absolutely love it now if you know anything abo...
Already in 2019 I've been blown away a few times at the shear value for money on some of these phones we've had devices from oneplus on a Asus quite a f...
so this is the asus rog g85 o2d you that was a mouthful but I'm gonna refer to this as the favo 2d for the rest of the video now it's really interestin...
So in these third-generation Rison cpus were launched a little while ago to be more precise it was launched on the exact same day as the rx 3700 series GPUs and...
well hello with people I'm Dimitri and today we're talking about the SteelSeries apex Pro keyboard with new omni point switches now we have done severa...