Apple has been doubling down on the service front
Apple (AAPL) is pushing hard to boost its service revenue, which could be its next big growth engine. The iPhone maker could soon be unveiling a video streaming service.
Apple has also been liaising with several publishers for its upcoming premium news subscription service, which is set to allow subscribers to read an unlimited amount of content from Apple partners. Last year, Apple acquired Texture, an app that offers access to over 200 magazines.
Apple reportedly signs a deal with Vox
According to The Wall Street Journal, some publishers are resisting Apple’s steep financial terms, wherein the tech giant wants a 50% cut. However, Bloomberg reports that Apple has signed a deal with Vox Media’s Vox. Apple’s news subscription service is widely expected to be announced on March 25, along with its streaming service.
The new services could boost Apple’s services revenue, which has decelerated for two quarters. Service revenue still makes up only a small percent of Apple’s total revenue.
During fiscal 2019’s first quarter (ended in December), services represented just 12.9% of Apple’s total revenue, while revenue from its core business, iPhones, fell 15.9% year-over-year.