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Innovation

Apple reportedly developing digital service bundles for iOS 14

According to a report from Bloomberg​, Apple is developing a new series of subscription bundles meant to spur adoption of the company's digital products, like Apple Music and Apple TV+.
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Written by Natalie Gagliordi, Contributor on

Apple plans on taking a page from the Amazon Prime playbook with a new series of subscription bundles meant to spur adoption of the company's digital products, like Apple Music and Apple TV+. According to a report from Bloomberg, Apple is developing service bundles called "Apple One" that will be offered as part of the upcoming iOS 14 release. 

Per Bloomberg, the basic Apple One tier will include Apple Music and Apple TV+. The next level up will include Apple Music, Apple TV+, and the Apple Arcade gaming service. An even pricer tier will add Apple News+. The most expensive tier will offer all of the aforementioned services plus extra iCloud storage.

The company is also reportedly building a subscription service that will offer virtual fitness classes via an app in iOS. The service is expected to follow the format of other fitness apps on the market, such as those by Peloton, Nike, and other well known personal trainers. 

Apple's digital service bundling parallels what Amazon has done with its Prime subscription, which offers customers access to Amazon's music and video streaming services in addition to two-day free shipping for e-commerce purchases. The bundle model has grown in popularity among digital service providers looking to emulate Amazon's success.

Digital services are already a major moneymaker for Apple. In its third quarter earnings report, Apple said services revenue was up 15% to $13.16 billion. The company also achieved its goal of doubling its fiscal 2016 services revenue six months ahead of schedule. 

The category results reflected all-time record performance and strong double-digit growth for some services, including the App Store, Apple Music, Video, and cloud services. New services like Apple TV Plus, Apple Arcade, Apple News Plus and Apple Card also contributed to Apple's overall Services growth. Apple now has more than 550 million paid subscriptions across the services on its platform, up 130 million from a year ago. The company is aiming to reach 600 million paid subscriptions before the end of 2020. 

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