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Apple Primed for Hardware & Software Subscription Bundle

| 14 days ago

apple-primed-for-hardware-and-software-subscription-bundle-20201207-1

According to analyst reports, Apple is gearing up to launch a combined hardware and software subscription bundle!

Why Apple Should Consider a Subscription Bundle

Loup Venture analysts' report suggests that Apple should seriously consider launching an all-in-one hardware and software subscription bundle.

This consideration considers how Apple has been performing within industry trends, aggregated data, and existing infrastructure.

Both hardware subscriptions and the subsequent 360° bundle align with two macro trends: an ongoing digital transformation and changing consumer buying preferences. Additionally, Apple is the only company that can make this work, given their service and maintenance logistics, along with seamless hardware and software integration.
Loup Ventures

Digital Transformation & Consumer Buying Trends

The report speaks upon "industry macro trends," which consider Apple's growing digital transformation and consider their consumer buying trends.

It’s clear our dependency on tech has accelerated because of the pandemic. What’s less clear is how much of that acceleration is sustainable long-term. Our view is that most of it is. Take, for example, work, in which we estimate the percentage of US knowledge workers working from home will settle at a level 3x greater than before the pandemic. In terms of learn-from-home, while we believe all students will eventually go back to classes in person, we expect greater tech outfitting by educators and parents to facilitate learn-from-home on short notice. With these shifts come a greater emphasis on the reliability and utility of the hardware, software, and services we depend on.
Loup Ventures

As for aligning with consumer buying trends, Apple is in a prime position to offer a subscription bundle. Consumers would much rather invest in a subscription than buy the product outright.

This is suggestively a factor of consumers wanting the latest and the greatest. With subscriptions, however, consumers have great flexibility to upgrade without changing out the product itself.

Next, consumers, particularly millennials and the front end of Gen Z, tend to have a rent vs. buy mentality. A 2019 survey by First Insight found that 31% of millennials use subscription services, compared to 21% of Gen Xers, and 8% of Baby Boomers.
Loup Ventures

Bundle Will Give Apple a Lead on Competitors

The report further specifies why the subscription bundle is a good idea for Apple in how Apple is the only tech giant with the capacity to create such a bundle. This is because of Apple's service and maintenance logistics and its one of a kind hardware and software integration.

Such a subscription bundle's success will suggestively bring an increase in Apple's market revenue and earnings and because there is a growing demand for such a service!

The iPhone trade-in program, AppleCare, Apple One, and the iPhone Upgrade Program help set a foundation for a subscription bundle to take off. These current programs have these three key features that are needed to launch a bundle:

  1. Product families must work seamlessly together.
  2. Service and maintenance infrastructure in place.
  3. Products must hold value over time.

The report concludes with a bold statement about how Apple competitors, Google and Samsung can not compete with a potential combined subscription.

Google struggles with device value decrease, and Samsung suffers from poor hardware and software integration, all of which Apple has to launch an attractive all-in-one subscription package.

Products Covered

allapplenews-product-Apple One
Model
Apple One
Release Date
Fall 2020

Features

• All in one: Apple Music, Apple TV+, Apple Arcade and more
• Individual Plan at $14.95/month
• Family Plan at $19.95/month
• Premier Plan at $29.95/month

Description

Apple finally bundled your favorites, including Apple Music, Apple TV+, Apple Arcade, iCloud, Apple News+, and Apple Fitness+, all into one subscription plan, Apple One. Save money and get more Apple services with the ultimate Apple service bundle.

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