Apple is going to increase the price of its AppleTV+ and Apple Music subscriptions.
👉 Background: Apple, which started in 1976 and sells electronics and software around the world, is earth’s most valuable company.
👉 What happened: Last week, Apple announced its latest quarterly results, with revenue up by 8% to $394.3 billion USD. And Apple ain't satisfied. It reckons that it would’ve grown “double-digits” if not for the strong US dollar.
👉 What else: They also let their loyal users know they’re going to increase the price of their AppleTV+ and Apple Music subscriptions. And this is certainly not what customers want to hear when coffees are now costing more than $5 a pop!
💡Consumer spending – which is the economy’s main growth driver – is very much expected to stay flat, if not decrease. But Apple reckons that its price hike won't impact demand.
💡Apple has always attracted ‘premium’ customer for its hardware products. Now it’s expecting its loyal, rusted-on customer base to pay a premium for its software products too.
💡While making things more expensive for cash-strapped consumers could be a tad risky, Apple seems to know what it’s doing. And its slowly but surely making the shift from a hardware-first company to becoming a software one.
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