Tim, the Apple CEO, is betting on selling services, a sector with high risks and much competition. He intends to establish suite services, which is the most significant shift for the company. Apple will announce video and news subscription services that will strengthen ties between users and the company, as well as generate more income ( Mickle, 2019). As such, this is a business strategy since Apple sees less prospects in the iPhone, but considers that TV and News will do it good.
Apple intends to create a new entertainment service through videos to access more markets worldwide. Moreover, it intends to reinvent television that failed in the past. Apple will show the first shots of its new TV shows after cutting agreements with Hollywood stars. The series will be delivered in a new TV app, which people will subscribe to by clicking ( Mickle, 2019). Moreover, Apple will unveil an enhanced News app with a premium tier for access to more than two-hundred magazines. Most of the content in the journal will be accessible, political and lifestyle news will also be showcased, while business and finance broadcast will not be exhibited. The news subscription follows the acquisition of a Netflix-for-news app termed Texture.
Delegate your assignment to our experts and they will do the rest.
Apple's most significant source of revenue is by distributing other companies' software through its App Store. Moreover, Apple Music streaming service attempts to build its own subscription business. In January 2019, Apple declared that it would place a TV app on sets produced by Samsung for those without Apple hardware ( Mickle, 2019). Similarly, Apple contracted with Amazon to convey Apple music to Echo Smart Speakers. Conversely, other fruitful subscription apps have given away more information at lower prices compared to what Apple anticipates to.
By considering TV and News, Apple will have pursued a business strategy to counter competition since it is willing to offer its services on non-Apple gadgets, which they did not advocate for before. Moreover, Apple will be ready to enter alliances and work with rival companies such as Samsung and Amazon. Therefore, the business technique employed by Apple to acquire a TV app, video and music will make it become adaptive to the changing smartphone era. With this, Apple intends to reach more and new markets globally, which has a positive impact on the revenue generated from subscriptions and sales.
Therefore, Apple announcing video and news subscription services will strengthen its ties with its users and generate more income. This is a business strategy to help it counter competition, enter alliances and work with rival companies, become adaptive to the changing smartphone era, reach more and new markets globally. Subsequently, Apple will have a positive impact on the revenue generated from subscriptions and sales.
Reference
Mickle, T. (2019). With the iPhone Spluttering, Apple Bets Its Future on TV and News. Retrieved from https://www.wsj.com/articles/with-the-iphone-sputtering-apple-bets-its-future-on-tv-and-news-11553437018
