Apple (NASDAQ:AAPL) is reportedly ready to launch a long-rumored bundle, which would package together several of the company's most popular digital services for a lower monthly price, according to a report by Bloomberg, citing "people with knowledge of the effort."
The plan, which will be christened Apple One, could debut as early as October. It could contain several packages, allowing customers to subscribe to only those services they want.
A long time coming
A basic tier would include the company's streaming video and streaming music offerings -- Apple TV+ and Apple Music -- while a successive tier would also include Apple Arcade, the company's monthly mobile gaming service. Subsequent levels would include Apple News+, while the priciest package would also offer additional storage for files, videos, and photos on iCloud.
The move is designed to encourage stragglers to sign up for additional Apple services, a segment that has become increasingly important to the tech giant in recent years. Worldwide smartphone sales declined by 1% in 2019, weakening demand for Apple's flagship iPhones.
At the same time, revenue from Apple's services segment has stepped in to take up the slack, more than doubling over the past several years. The segment generated nearly $52 billion over the preceding four quarters and now accounts for 19% of Apple's trailing-12-month revenue. Apple has an installed base of iPhones that's estimated at 950 million, giving the company a lucrative opportunity to expand its services even further.
There have been whispers of a services bundle since even before the company debuted Apple TV+, with analysts predicting the move back in September 2018. At the time, Morgan Stanley estimated a services bundle could boost Apple's revenue by $37 billion.