Bundling Strategy

Apple ONE’s Subscription-based Business Strategy

 

Robbie Kellman Baxter takes a look at the Apple ONE bundling strategy to assess the pros and cons of bundling offers and partnerships from the perspective of a subscription-based business strategy. 

Rumors are flying about Apple’s emerging bundling strategy. Apparently they are getting ready to launch several tiers of new bundled subscriptions, incorporating different combos of the following: Apple Music, Apple TV+, Apple Arcade, Apple News+, iCloud storage and eventually a new Fitness offering.

It makes sense. We’ve already seen the power of Amazon Prime, both as a driver of revenue and as a powerful “habit driver” for all of Amazon’s offerings. I know I joined Amazon Prime several years ago just for the free shipping. Today, that free shipping has motivated me to go to Amazon first for nearly everything. Just as important, Amazon Prime has introduced me to many other features that deepen my family’s engagement and loyalty, including video, audio, storage and ebooks.

Apple has been focusing more on service revenue over the past few years, and this move is one more step on their recurring revenue journey. They already have a “forever transaction” with millions of hardware customers who have stopped looking for alternatives to Apple for their hardware purchases. Now they are simply formalizing that relationship and extending it with their various subscriptions.

 

Areas covered in this article include:

  • Bundling 
  • Rundling
  • Partnering with a bigger player

 

Read the full article, Apple ONE (Or the Pros and Cons of Subscription Bundles, Rundles and Partnerships), on LinkedIn.