A slew of Apple’s latest products were launched this week, including software upgrade iOS 14, two new models in the Apple Watch series, and a new iPad Air model. However, the much-awaited iPhone 12 was conspicuously absent, leading to rumours that it could be launched later in October.
Apple has capitalised on an increased global focus on health and fitness. Its wellness-oriented software and hardware updates to its Apple Watches cater heavily to consumers at home.
Fitness+, Apple’s first full-fledged venture into the fitness content space, offers a subscription service that grant users access to a library of recorded fitness sessions. The new offering synergises well with the two new Apple Watches, the Apple Watch 6 and Apple Watch SE, which now collect additional health data via a blood oxygen sensor and an altitude meter, in addition to standard heart rate tracker.
An Apple One subscription plan, which bundles all of Apple’s subscription offerings into one unified subscription, will also offer consumers cost-savings, which could sway more users towards Apple’s ecosystem.
Apple has reported an 11% year-on-year increase in revenue (USD 59.7 billion) in its last financial quarter, which ended 27 June 2020, despite global social distancing lockdowns. CEO Tim Cook extolled Apple’s ability to innovate and remain resilient despite facing unprecedented times, stating, “Apple’s record June quarter was driven by double-digit growth, a testament to the role our products play in customers’ lives.”
However, the new product line comes amidst the ongoing high-profile lawsuit between Apple and Epic Games, which criticised Apple’s steep 30% commission on all App Store sales last month. Music streaming platform Spotify has also accused Apple of engaging in anti-competition practices. The lawsuit could potentially lead to a drop in App Store revenues if Apple is forced to restructure its commission model.
Although Apple’s stock rallied in early September, prices have seen a 16% drop in the last two weeks following Apple’s 4-for-1 stock split on 28 August. However, Needham analyst Laura Martin predicted on Motley Fool that Apple stocks would soon rebound to record prices, citing a price forecast of USD 140.
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