![\"\"](\"https:\/\/icrowdnewswire.com\/wp-content\/uploads\/2020\/06\/3998-ICN.png\")
<\/p>\n<\/p>\n
![\"article](\"https:\/\/photos5.appleinsider.com\/gallery\/36895-68977-Apple-Logo-Building-xl.jpg\"){kind=logo}
<\/div>\nSome analysts are raising concerns that Apple’s 2019 slate of services are off to a slower start than originally anticipated, but how much that may impact Thursday’s earnings isn’t clear.<\/p>\n
In March 2019, Apple launched four new premium Services offerings: Apple TV+<\/a>, Apple Arcade<\/a>, Apple News+<\/a> and Apple Card<\/a>. In the year since they launched, Bernstein estimates that they haven’t added much to Apple’s top line.<\/p>\n<\/div>\n According to Bloomberg<\/em>, Apple’s Services revenue is expected<\/a> to grow to $13.1 billion in the third quarter of 2020. That’s up 15% year-over-year, but data shows the majority of the growth came from existing services.<\/p>\n<\/div>\n That growth may be relative, however. Apple TV+, which launched in November, is expected to bring in $2.5 billion in 2020 per Bernstein’s revenue models. During this period, Apple TV+ was available for free for Apple users that purchased new hardware, including the $169 Apple TV, and $199 iPod touch.<\/p>\n<\/div>\n Apple TV+ has had its own successes, with a handful of its shows winning nominations<\/a> or awards<\/a>.<\/p>\n<\/div>\n Services revenue is also a combined sector of Apple’s business — the company doesn’t break down the sector into specific subscriptions. More than that, the company’s slate of Services are already contributing<\/a> to Apple’s continued market outperformance even during coronavirus<\/a>, and are likely to continue to grow.<\/p>\n<\/div>\n In the first half of 2020, for example, the App Store<\/a> generated $32.8 billion for developers — up 20% year-over-year. Apple also recently highlighted a report<\/a> suggesting that the marketplace generated half a trillion in total commerce for businesses.<\/p>\n<\/div>\n Some of the 2019 Services have had a rockier start than others, however. In February, Apple News’ head of business stepped down<\/a>. In June, the New York Times said it would leave<\/a> the free Apple News platform.<\/p>\n<\/div>\n The App Store has also generated controversy among some developers, and Apple CEO Tim Cook<\/a> is set to testify<\/a> before Congress about whether its App Store policies are snuffing out competition.<\/p>\n<\/div>\n Apple does appear to be identifying the sticking points and taking steps to resolve them. In late June, the company was said to be shifting<\/a> its Apple Arcade strategy to focus on engagement. It has also offered new free trials for Apple Arcade and Apple News+ to users who had subscriptions but canceled them<\/a>.<\/p>\n<\/div>\n In the meantime, Apple’s Services sector is still reliant on established platforms like the App Store and licensing deals, which are forecast to bring in about $25 billion for the Cupertino tech giant in the June quarter.<\/p>\n<\/div>\n Apple is set to announce<\/a> its Q3 2020 earnings results on a conference call with investors and analysts at 2 p.m. Pacific (5 p.m. Eastern) on Thursday, July 30.<\/p>\n<\/div>\n<\/div>\n Tags:<\/b> Mike Peterson <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"\n\n\n\n\n\n\n\n\n\nSee Campaign: <\/strong>https:\/\/appleinsider.com\/inside\/apple-arcade<\/a>
Contact Information:<\/b>
Mike Peterson <\/p>\n
<\/a>, Wire<\/a>, United States<\/a>, English<\/a><\/p>\n<\/div>\n
\nContact Information:<\/h3>\n
Some analysts are raising concerns that Apple’s 2019 slate of services are off to a slower start than originally anticipated, but how much that may impact Thursday’s earnings isn’t clear. In March 2019, Apple launched four new premium Services offerings: Apple TV+, Apple Arcade, Apple News+ and Apple Card. In the year since they launched, Bernstein estimates that they … Continue reading Apple’s new subscription services may be off to a slower than expected start<\/span><\/a> Continue Reading