A.111
2022-08-07

As Apple's App Store revenue slows, company looks to other avenues to boost growth

Apple's (NASDAQ:AAPL) services business has been the proverbial apple of Wall Street's eye, seeing double-digit revenue growth for several years and margins estimated to be around 70%.


But, with concerns that the segment is starting to slow, due in part to flatlining growth for the App Store, the tech giant is looking for other ways to boost growth in the valuable arena.


On Friday, Apple (AAPL) announced that Apple Card users can get three months of Apple TV+ free, as part of a promote for Apple's (AAPL) new animated movie, Luck. There has been a considerable amount of buzz surrounding Luck, which is produced by Pixar legend John Lasseter. The movie, which carries a price tag of $140M, has scored well with fans, carrying a 75% audience score on Rotten Tomatoes, though it has fared far worse with critics at 49%.


The offer is applicable for both new and existing Apple TV+ subscribers -- though it is not available for Apple One subscribers -- highlighting just how important Apple's (AAPL) services business is to the future of the company.


It's unclear how much revenue, if any, Apple (AAPL) generates from Apple Card, but the credit card, issued by Goldman Sachs (GS), certainly helps keep customers locked into the Apple ecosystem.


Apple TV+ has won more than its fair share of critical praise, including winning Best Picture at the 2022 Academy Awards for its heartwarming coming of age story, CODA. But again, it's unclear what level of revenue Apple TV+ drives for the company, just like the Apple Card.

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Comments

  • Mungerism
    2022-08-08
    Mungerism

    $Apple(AAPL)$ Short term Apple looked over-extended having gained nearly 18% in a month, that's almost equal to the entire market cap of meta. When one ask The question of what could be the short term catalyst that could keep driving share price up, it's hard to find one, especially for a corporation of this size. Stay cautious in the short term

  • LWayne
    2022-08-08
    LWayne
    the chart mimics the index movement
    • LWayne: 
      or rather, the other way round 😂
  • Pandaxiong
    2022-08-08
    Pandaxiong
    interesting
  • May168
    2022-08-07
    May168
    Good I will hodl
  • Andie8392
    2022-08-07
    Andie8392
    good post.. thanks for sharing
  • Novem678
    2022-08-07
    Novem678
    Thank you for sharing
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