Apple’s special event
On Monday at 10:00 AM ET, Apple (AAPL) held its highly anticipated special event at the Steve Jobs Theatre in Cupertino. During the event, the company unveiled its news subscription and video streaming services, as expected, called Apple News+ and Apple TV+, respectively. Apple also unveiled two other services—a credit card called Apple Card and game subscription services called Apple Arcade.
Did the event disappoint investors?
The future growth of Apple’s services segment highly depends on today’s announcements. Before we discuss the possible impact of Apple’s new services on its financials, let’s take a quick look at some of the key highlights of Apple’s new services announced today.
Apple’s video streaming services, Apple TV+, could be seen as the biggest announcement from the company today. Apart from Apple devices, Apple TV+ would be available on Roku’s streaming boxes and Amazon’s Fire. Also, Apple has partnered with Samsung, LG, Sony, and Vizio to make Apple’s new video streaming services available on their smart TVs.
Overall, Apple’s video streaming services didn’t look very different from the competition, including Netflix, which could be a bit of a disappointment for investors. However, the company’s exclusive content, including movies and Apple channels, could help it distinguish its services from the competition.
Apple’s announcements today were closely watched by investors and analysts alike. In anticipation of today’s announcements, Apple stock has outperformed the broader market (SPY)(QQQ) in March so far with solid 10.3% gains. A declining trend in the company’s product segment sales increases the importance of its services segment’s sales growth.