Apple’s Paradigm Shift to Services has Begun

Photo Credit: Apple

 

During Apple’s keynote event today, Apple as expected, announced a series of services. These services include “Apple News +”, “Apple Card”, “Apple Arcade” and “Apple TV +”. Apple is broadening and deepening the scope of their ecosystems. They are attempting this strategy in hopes to entice you with their offerings and then lock you into providing reliable streams of revenue.

Apple News Plus
Apple released its News app 3 years ago at the peak of personalized and curated news feeds. Today they are expanding this vision by offering a premium version of this service called Apple News Plus. Along with the usual web articles that have been offered and continue to be free, Apple has invited prominent News and print media outlets into their service. Outlets like National Geographic, GQ, and Essence magazine will now be able to be read in their entirety and unlimited as long as customers subscribe to this new service. Readers of the Wall Street Journal and the Los Angeles Times will now be able to read the paper on all of their Apple devices with the subscription as well. Apple has worked with these publishers to optimize and enhance their content for iPhones and iPads. Animations, transitions, and high resolution “Live Covers” will be used to immerse readers into the content they are consuming. Live Covers, will function like Apple’s Live Photos, but only for magazine Covers. Based on the demonstration that was shown during the keynote its looking like the News app may start looking like newspapers from Harry Potter, only in color. Apple News Plus will be 9.99 a month, but this service is supported by Apple’s family sharing feature. This means up to 6 people including the subscription holder can enjoy accessing Apple News Plus at no additional charge.
Apple Card
In an update to Apple’s “Apple Pay” service, the company is now offering their own branded credit cards. Apple plans to simplify the credit card experience and equip customers with the tools to safely and securely manage their finances. Apple ambitiously has “claimed” to have eliminated all fees associated with this card. This includes the removal of annual fees, late fees, and fees associated with exceeding spending limits. In order to offer a credit card, Apple had to partner with the bank Goldman Sachs and the company Master Card. Apple will offer cash back for purchases made on the card in the amount of 2% daily on purchases made on the card and 3% from purchases made at Apple retailers.

Apple will offer a virtual version of their card that will live on your iPhone with its data protected on the secure enclave partition of Apple’s processors. Its data will be encrypted and only stored on the iPhone. Apple will also offer a physical version of this card. The card will be made of titanium and will only feature a name and the Apple logo on the card. The card number, CVV, and signature won’t be present on the card for increased security. This card is to be used wherever Apple Pay is not supported. Details on where customers can get a physical card haven’t been made available at the time of writing. The Apple Card Service will be made available this Summer.

Apple Arcade
In an update to Apple’s App Store service, the company is now offering a subscription to mobile games that have been developed and curated in direct partnership with Apple. The games in this subscription will only be available through this subscription and only available on Apple devices across iOS, MacOS, and TvOS. Apple only offered a few teasers of the upcoming games offered in their service and announced that pricing for this service would be announced at a later date. The service is expected to launch in the fall of this year. The game service will operate through paid subscription only, which means none of these games will be free to play, feature adds, or offer in-game purchases. The service will, however, support family sharing, which means the entire family will be able to enjoy this gaming subscription across different devices.

Apple TV Plus
Today Apple finally unveiled its Apple TV streaming service. Actors, directors, and composers, filled the audience and graced the stage to give us a peek at the original programming that would be exclusive to Apple’s service. Apple also announced that its TV App would be getting an update to accommodate its streaming service and its new Channels feature. “Channels” is an option for customers to subscribe to individual content providers like HBO, Stars, and Showtime. Apple’s original content would only be available to subscribers of their TV Plus service. As its a paid service it will also be ad-free and arriving this fall.

On a final note, Apple introduced TV Legend Oprah Winfrey to introduce an unnamed project that she and the tech company were collaborating on. The only information we were given is that this program would be something like a book club.

Apple’s services could very well turn the tide for this company which is currently seeing sales slumps and fluctuating stock value. Apple needs to produce content that is engaging and provocative, but they also need to match the quality of its content with the quantity as well. Competition is heating up in the streaming world especially with Disney launching their own streaming service this fall as well.