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'Apple One' Services Bundle Launches Today

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'Apple One' Services Bundle Launches Today

Apple Inc (NASDAQ: AAPL) is set to launch its “Apple One” bundled services on Friday and will launch "Fitness+" digital workout service this quarter.

What Happened: The timeline of the service launches was revealed by Apple’s Chief Financial Officer Luca Maestri in a conversation with Bloomberg.

Last month, the Tim Cook-led company had announced Apple One, which bundles iCloud storage, Apple Music, Apple TV+ and Apple Arcade for $14.95 a month with a family plan option costing $19.95 a month.

A higher-cost version that includes Apple News Plus and Apple Fitness+ is available for $29.95 per month.

The Fitness+ service would be available on iPhone, iPad, and Apple TV at the cost of $9.99 per month, or $79.99 with families included at no extra cost.

Why It Matters: Needham analyst Laura Martin said that services carry a 67% gross margin compared with a 30% margin for products.

On Thursday, the Cupertino, California-based tech giant released better than expected fourth-quarter results, with earnings per share of 73 cents beating consensus estimates of 70 cents.

Robust services revenue helped the tech giant offset decline in the sales of its iPhone devices.

Revenues rose 1.03% year-over-year to $64.70 billion, exceeding expectations of $63.7 billion.

Even as product sales, which made up 77.5% of the revenues fell 2.7% to $50.15 billion, services revenue rose 16.3% to $14.55 billion.

Price Action: Apple shares closed about 3.7% higher at $115.32 on Thursday and fell 4.2% in the after-hours session to $110.45.

 

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