Friday , December 4 2020

Apple Inc. (NASDAQ: AAPL) – ‘Apple One’ Services Bundle Launches Today

Apple Inc. (NASDAQ: AAPL) is expected to launch its “Apple One” bundling services on Friday and will launch Fitness + digital exercise service this quarter.

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

Last month, the company led by Tim Cook announced Apple One, which bundles iCloud, Apple Music, Apple TV + and Apple Arcade storage 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 a month.

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

Why It’s Important: Needham analyst Laura Martin said services have a gross margin of 67% compared to a 30% profit for products.

On Thursday, the tech giant Cupertino, from California, 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 a decline in sales of its iPhone devices.

Revenue rose 1.03% year-over-year to $ 64.70 billion, exceeding expectations by $ 63.7 billion.

Even as product sales, which accounted for 77.5% of revenue fell 2.7% to $ 50.15 billion, services revenue rose 16.3% to $ 14.55 billion.

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

© 2020 Benzinga does not provide investment advice. All rights reserved.

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