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Not a very good start for new Apple services

Not a very good start for new Apple services

Apple today announced its results for the past 3 months. Services revenue is expected to increase approximately 15 percent to $ 13.1 billion. However, the bulk of the income should come from the app store and license agreements.

In the area of ​​services, TV +, Arcade, News + and Apple Card were only presented last year. TV + is an in-house alternative to Netflix and Co, which primarily offers specially produced films and series. Arcade is a game subscription that gives you access to over 100 games. These can be played on Mac, iPhone, iPad and AppleTV. News + enables access to several magazines and newspapers based on a flat rate. As a credit card, Apple Card is primarily intended to support Apple Pay. The latter two services are currently only available in the United States.

Gaming and streaming have so far been poor

According to Bloomberg, TV + is weakening due to already established streaming services such as Amazon Prime Video or Netflix. In particular, the 1-year free subscription for new hardware customers does not make this situation easier. According to the report, only about 15 percent followed Apple’s offer. Arcade offers 1 free trial month, this has recently been extended to 2 months for those interested, which suggests that Arcade attracts far too few customers.

Problem Child News +

Apple News + is a headache. As we also reported, several large publishers have ended their cooperation with the tech group in the past few months. Several analysts see News + as a failure.

App store as a successful model

However, the app store can still be seen as a guarantee of success. Already in the first half of 2020, developers were paid almost $ 33 billion. That is an increase of 20 percent over the previous year. Since Apple has a 30 percent share in app store sales, this is also a success for Apple.

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Via Bloomberg

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