OS

Apple rolls out CarPlay and Pay Later features as its walled garden gets harder to escape

Wednesday, June 8, 2022 by Snacks
Apple tends to its walled garden (Tayfun CoÅkun/Anadolu Agency via Getty Images)

Apple tends to its walled garden (Tayfun CoÅkun/Anadolu Agency via Getty Images)

The Apple-verse is already here… even if the iHeadset isn’t. Tim Cook did not unveil a mixed-reality headset at Apple’s annual developer conference this week, as some had been hoping. But he did launch several features that’ll make Apple’s devices even more central to consumers’ actual reality:

  • All the upgrades: iPhone, Mac, Watch, and iPad are all getting software updates. Highlights include editable iMessages and a biometric-authentication tool dubbed “Passkeys.”
  • BNPL, meet APL: A service called Apple Pay Later lets users pay for things in four interest-free installments spread over six weeks.
  • Apple Car teaser: Apple’s teamed up with Ford and Honda to expand its CarPlay integration. Think: cars with Apple dashboard widgets that control A/C and radio.

An OS for everything… Increasingly the iPhone’s becoming a hardware portal to Apple’s expanding suite of services. Though the iPhone’s still Apple’s most profitable biz line, sales of services (think: iCloud, Apple Card, TV+) are growing much faster. This year Apple’s services revenue is expected to hit $80B+ (more than Mac and iPad sales combined). Some of the features announced this week compete with entire business sectors:

  • iChallenger: Apple Pay Later challenges buy now, pay later giants like Affirm, while Passkeys threaten startups like LastPass. Apple has a unique ability to pose an instant threat to big companies and startups alike, thanks to its base of nearly 2B active devices.
THE TAKEAWAY

Apple wants you to buy now, pay forever… New Apple services don’t just threaten competitors — they also make it harder for consumers to ditch Apple products. If you rely on the Apple ecosystem to stay in touch with friends (iMessage), make big purchases (Apple Pay Later), and drive your car (CarPlay), you’re more likely to keep buying Apple devices for life.

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