The Rum Pal One Bundle, long rumors and Wall Street will cheer

For Apple Pull investors, the company is not the latest version of the exciting product, iPhone or Watch Pull and Watch, which the company could publish this fall: it’s a bundle that binds some of the company’s subscription services together and gives users discounts for more than that. At the same time.

Apple has not confirmed the name suggested for the Play Bundle, “Apple Pul One”, but technology blog 9to5Google suggested a code earlier this week in the Google Pul Music Android app that suggests that the iPhone maker will combine its music service with other subscriptions offered like Pal Apple Pal. TV +, Apple Paul Arcade and iCloud storage.

If Apple Plus One starts this fall, Wall Street investors and analysts will be happy. An Apple Pal bundle has been on the investors’ wish list for years.

“We have long argued that bundling services is a unique tool that Apple has.” Katie Huberty, an analyst at Goldman Sachs, wrote in an August Gust note.

The theory is that an Apple PL bundle will anchor Apple Plc’s bargaining services business, increase the number of customers and complete the perspective shift from Apple PL as a hardware maker based on annual iPhone refresh, to multi-line technology and software products Without a dramatic increase, the potential will increase the value of the stock.

Huberti writes that an Apple Plus bundle can differentiate Apple Paul’s services, promote customers for Apple’s less popular services, integrate with Apple Plus Pay and Apple Plus cards, and lock customers into the Apple Plus ecosystem. Apple has set a target of 600 million customers by the end of 2020 (including subscribers to the App Store apps), writes Huberty, and a bundle will help hit that target and increase it.

To some extent, Apple has begun to change its story with investors. Carl Eich, an executive investor, wrote an open letter to Apple Cook CEO Tim Cook, realizing that he had rejected Apple’s ecosystem.

At the close on Thursday, Apple Pal had a P / E ratio close to 34.5, compared to 10.9 when Ika wrote his letter, according to Faxet. It is largely driven by Apple Paul’s online services, which accounted for 22% of the company’s revenue for the quarter ending in June.

Ican, who sold its stake in Pal in 2016, suggested that Apple Pal could aggressively increase its P / E ratio by expanding into the TV market, and that a key part of the strategy would be a “skinny bundle” of pay-TV shows and movies streaming music services. With from media companies.

This “skinny bundle” was never a success, nor was the Apple Pull-made physical TV that Icah predicted. But in recent years, Apple Play has taken some steps toward that vision. Last November, Apple Play released Apple Pull TV +, a monthly subscription of 4. 4.99 that gives users access to TV shows, movies, and documentaries funded by Apple Pull. And within the Apple Pull TV app, users can subscribe to CBS All Access Access and Showtime, two streaming channels, for 9. 99.99 per month, saving $ 11 per month on purchasing two services separately.

But the idea of ​​the Apple Pal bundle and significant recurring revenue caught on at the time among people who felt that the Apple Pal was not evaluated. Goldman Sachs analyst Simona Jankowski launched in 2016 that if Apple Pl owned its own content, it could bundle Apple Pull Music and hardware Pull TV set-top bikes and hardware like the iPhone for ડ 50 per month. Bernstein analysts said at the same time that Apple bought Netflix to create a bundle to counter Amazon Prime.

The idea for “Apple Pal Prime” was born in Apple Pal viewers and fans.

It is unclear at what price Apple will bundle the moment. It sells numerous subscriptions that give it a good start:

• Apple Pal TV +, streaming video for 99 4.99 per month
• Apple Pal Music, streaming music for 99.99 per month
• Apple Pal Arcade, a selection of games for 99 4.99 per month
• Apple Pal News +, a monthly bundle of magazines and newspapers at 99 9.99 per month
• ICloud storage, which enables users to synchronize data between devices, starting at 0. 99.99 per month

Apple has not released subscriber numbers for Apple Plus TV +, Apple Plus Arcade or Apple Plus News + since its launch last year. Apple Pal Music has over 60 million subscribers. Apple Play said it had 550 million subscribers earlier this year, but it counts the number of people who subscribe to the app on the App Store.

According to a Bloomberg report, the basic bundle could start with Apple Pull Music and Apple Pull TV +. The extra fee will add Arcade, News + and iCloud storage for an additional fee – but the services will cost less than that separately.

One thing not likely to be included in the bundle: hardware.

Analyst Tony Sungungghi asked Cook directly about the hardware bundle on the conference call last fall. He did not shoot the idea, but suggested that something like that was already in place.

“As for the hardware service or in terms of the bundle, if you will, there are customers today who essentially see the hardware as it is on upgrade plans and so forth, “Cook said during the earnings kings.” So to some degree that exists today. “

But Cook also said he expects hardware as a service or bundle to grow “disproportionately” in the future.

Apple Pal has an iPhone upgrade program, launched in 2015, which charges users on a monthly basis and gives them the option to trade in their old iPhone once a year for their new iPhone. And last fall, Apple Pay began offering interest-free lending for Apple Pay products through its Apple Plus card credit card partnership with Goldman Sachs.

After all, Apple Paul doesn’t see its business the way Wall Street does. He sees Apple as building a complete ecosystem on its own. If a user has an iPhone, they will feel better if they also make heavy use of Apple Plus software software and services and are likely to purchase Air AirPods or Apple Plus Watch – or Apple Plus One Bundle. The whole ecosystem is bundled.

If Fall Pal releases the OnePall One bundle from this fall, it won’t talk about the P / E ratio or whether the company is more valuable as a software-plus-services company. It more potentially emphasizes how its services are and why customers benefit more from being part of the Pull ecosystem.