FIRST TAKE: Get BIIntelligence's analysis on how Apple's news, video, and gaming offerings will boost its Services segment:
to accelerate services revenue. Earlier today, the tech giant finally announced several major new premium content services at its event in Cupertino. Despite information leaks and a broad push to grow its Services segment, Apple's new offerings — Apple News+, Apple TV Channels, Apple TV+, and Apple Arcade — had previously been shrouded in a veil of secrecy.
Moreover, we view this as a play to rev waning iPhone sales, and possibly even convert Android users. Apple TV Channels can drive adoption because it will help patch the growing consumer pain point of fragmentation. In 2019, 165.5 million US internet users — or about 58% of internet users, and half of the US population — will play an online video game at least once a month, per eMarketer. But Apple isn't the only major tech company stepping up its presence in the space: Sony, Microsoft, Google, and Nvidia are all launching subscription gaming services this year.
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