Like apples in a basket... Apple doesn't want its services to hang alone anymore. The Fruit is reportedly launching subscription bundles along with its new iPhones in October. For consumers, a bundle costs less than subscribing to each service individually. For Apple, bundling helps score more subscribers for its services and build Prime-style loyalty. The bundles, dubbed "Apple One," will be offered at different price tiers (we named them):
Excellent timing... Apple's probably relieved that this news didn't spill before the big antitrust hearing. Two weeks ago, Big Tech CEOs got grilled by Congress while trying to prove their companies aren't giant anti-competitive monopolies. Apple's CEO Tim Cook got the fewest questions. Since then, more fuel has been added to the fire:
Bundling is a powerful strategy (that breeds lawsuits)... Big Tech can afford to bundle different services together at lower price points than competitors. Slack recently filed an antitrust complaint against Microsoft for throwing in Teams (free of extra charge) with the Office 365 subscription. Spotify, which already sued Apple for playing favorites on the App Store, could file another complaint about the Apple Music bundling. TBD if Peloton will sweat over Apple's new fitness subscription.