For Apple investors, the most interesting thing that the company will introduce this fall is not a new iteration of the iPhone or Apple stock price Watch: it’s a package that links some of the company’s payment services together and offers customers a discount on subscribing to more than one at the same time.
Apple has not announced “Apple One,” the proposed name for the package, but technology blog 9to5Google noticed code in the Apple Music Android app earlier this week indicating that the iPhone manufacturer would connect its music service to other subscriptions it provides, such as Apple TV+, Apple Arcade, and iCloud storage.
If Apple One begins this fall, Wall Street investors and analysts will be pleased. The Apple Package has been on investor wish lists for years to come.
What’s up for Apple
“We have long argued that bundling resources are a unique opportunity that Apple has at its hands,” said Morgan Stanley analyst Katy Huberty in an August note.
The theory is that the Apple package would anchor Apple’s burgeoning services market, expand the number of customers, and complete the transition from Apple as a hardware maker relying on annual iPhone refreshes to a technology and software firm with several lines of recurring sales and a self-reinforcing ecosystem, eventually pushing stock prices up without having to increase. Investors should expect what returns to go forward.
Huberty wrote that an Apple kit could separate offerings from that of Apple, raise Apple subscribers, incorporate Apple Pay and Apple Card, and lock customers into the Apple eco-system. Apple has set a target of 600 million subscribers by the end of 2020 (including subscribers to App Store apps), Huberty writes, and a package will help to reach and surpass that target.
Initiated in 2015
- To some point, Apple’s history with customers has also begun to shift. They offer the company a much richer price than they did in 2015 when Apple CEO Tim Cook was told by activist investor Carl Ichan in an open letter that he undervalued the Apple ecosystem.
- Apple stock price has a P / E ratio of around 34.5 on Thursday’s end, according to FactSet, compared with 10.9 when Icahn wrote his message. This was primarily powered by Online Offerings from Apple, which accounted for 22% of the company’s profits in the June period.
- It proposed that Apple could increase his P / E ratio by moving vigorously into the TV market and that a “skinny package” of pay Tv shows and films by the media alongside a subscription music service was one of the primary elements of that approach.
You can check the cash flow at https://www.webull.com/cash-flow/nasdaq-aapl if you want to invest in Apple stock.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.