NEWSrevenue. Apple didn’t produce any data about how its
newest service, Apple News+, is faring so far, which isn’t
surprising, but also suggests they couldn’t figure out any
number to disclose that would make them look good.
Apple CFO Luca Maestri did warn analysts that it
may take some time to grow revenue from its new
subscription businesses, which include the forthcoming
Apple Card, Apple Arcade, and Apple TV+ services.
“Keep in mind for all these services, there’s a trial
period up front, there’s going to be different trial
periods, we’ll see what they look like. So the road
to monetization takes some time,” he said.
Apple said its total number of paid subscriptions
is now more than 420 million, which includes Apple’s
services as well as subscriptions fulfilled via the App
Store. Third-party app subscription revenue grew 40
percent during the quarter.What trade war?
As you will have heard, there’s currently a lot of friction
between the US and China regarding trade. Apple was
mentioned specifically by President Trump recently,
which suggests he doesn’t look too kindly at the firm
building so many of its devices in China.
When asked about it during the analyst call, the
ever-careful Cook didn’t take the bait. “I know there’s
been a lot of speculation around the topic... I wouldn’t
put a lot of stock into those, if I were you,” he said.
Cook made it clear that he is a true believer in the
global supply chain. “The vast majority of our products
are kind of made everywhere.... Largely, I think that will
carry the day in the future as well.”NEWSrevenue.Appledidn’tproduceanydataabouthowits
newestservice,AppleNews+,isfaringsofar,whichisn’t
surprising,butalsosuggeststheycouldn’tfigureoutany
numbertodisclosethatwouldmakethemlookgood.
AppleCFOLucaMaestrididwarnanalyststhatit
maytakesometimetogrowrevenuefromitsnew
subscriptionbusinesses,whichincludetheforthcoming
AppleCard,AppleArcade,andAppleTV+services.
“Keepinmindforalltheseservices,there’satrial
periodupfront,there’sgoingtobedifferenttrial
periods,we’llseewhattheylooklike.Sotheroad
to monetizationtakessometime,”hesaid.
Applesaiditstotalnumberofpaidsubscriptions
is nowmorethan 420 million,whichincludesApple’s
servicesaswellassubscriptionsfulfilledviatheApp
Store.Third-partyappsubscriptionrevenuegrew 40
percentduringthequarter.
Whattradewar?
Asyouwillhaveheard,there’scurrentlyalotoffriction
betweentheUSandChinaregardingtrade.Applewas
mentionedspecificallybyPresidentTrumprecently,
whichsuggestshedoesn’tlooktookindlyatthefirm
buildingsomanyofitsdevicesinChina.
Whenaskedaboutit duringtheanalystcall,the
ever-carefulCookdidn’ttakethebait.“Iknowthere’s
beenalotofspeculationaroundthetopic...Iwouldn’t
putalotofstockintothose,ifIwereyou,”hesaid.
Cook madeitclearthatheisatruebelieverinthe
globalsupplychain.“Thevastmajorityofourproducts
arekindofmadeeverywhere....Largely,Ithinkthatwill
carrythedayinthefutureaswell.”