With hardware out of vogue, Apple goes soft(ware)

As hardware sales fall flat, Apple looks to its new media strategy to help keep users engaged, AKA keep them spending the tickle on the trillion dollar company’s products.


November 7, 2018

Last year, Tim Cook said he hopes to double the company’s “software services” revenue, AKA money made from the App Store, iTunes, and Apple Pay, by 2020.

Why, you ask? Because, come to find out, hardware isn’t cutting the mustard these days.

Now, Axios writes that, instead of making new nifty gadgets, the company will focus on user engagement by doubling down on a new digital media strategy that involves music, news, and original video.

Content is king

Apple has long been gearing up for hardware winter, and has made believers out of publishers with its Apple News product pretty much since its release.

But it’s not stopping there: Last week, the Financial Times reported that Apple expressed interest in investing in bankrupt broadcaster iHeart Radio to support its streaming music service, and the company plans to compete with Spotify by focusing on its playlist game

The behemoth also committed to spending $1B on original content this year that it now plans to give away for free to device owners.  

So, what does that mean for the future?

Obviously, shelling out $1B on original content and then giving it away for free doesn’t make much financial sense, leading some to speculate a bundled subscription media package is in the iPhone owner’s future.

All right, we’ll put a stake in the ground: That is exactly what’s going to happen.

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