Services Top Apple's September Launches
Apple energized its growing services business at its Tuesday event, announcing a subscription-based fitness app, Fitness+ ($9.99 a month; $79 yearly), and an expected bundled services offering (see 2008130029) under the moniker Apple One. “It’s all about recurring subscription revenue,” tweeted Futurum analyst Daniel Newman. Gartner's Mikako Kitagawa called the prices “competitive,” questioning if they will be enough to pull in users “other than existing Apple service customers.” Heavy Spotify or Netflix users need to have “a good reason to add Apple Music or TV," she emailed.
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No new iPhones were introduced. Chief Financial Officer Luca Maestri said on the most recent investor call that the next-generation lineup would be delayed (see 2007310056) by a “few weeks.” Packages under Apple One start with Individual ($14.95 monthly) for Apple Music, Apple TV+, Apple Arcade and 50 GB of iCloud storage. For $5 more, the same services are available to six family members with personal accounts and preferences, plus 200 GB iCloud storage. That left tech writer Lance Ulanoff wanting: “I wish the 2TB storage option was at the mid-tier." Premier ($29.95) adds 2 TB cloud storage, Fitness+ and Apple News+ for up to six family members, each with personal accounts and preferences.
Two technology features in the iPad Air ($599) that are new to Apple mobile devices could point to changes in next-gen iPhones. The tablet has a USB-C port vs. Apple’s proprietary lightning connector. Kitagawa sees that design decision to compete against Windows and Chromebook: Not having USB-C is a “disadvantage as the port is widely adopted.” The Air also has a new TouchID fingertip sensor in its top power button.
CEO Tim Cook began the virtual event citing COVID-19's global impact, before Chief Operating Officer Jeff Williams announced the blood oxygen sensor integrated into the Apple Watch 6 ($399, Friday). The Watch’s health sensor shines red and infrared light onto the wrist, measuring the amount of light reflected back. Algorithms use the data "to calculate the color of your blood, which indicates the amount of oxygen present," he said. Kitagawa called Watch 6’s features “impressive,” but only “if it is really accurate.”
The new Watch OS 7 adds health features including an app that works with motion sensors to track sleep. It automatically recognizes the motion and sound of hand-washing and urges wearers to keep going to reach the recommended 20 seconds. Motion and heart rate measurements gauge a lower range of maximal oxygen uptake values, said Williams. Such measurements were available only in specialty clinics, he said. Later this year, users can get an alert if levels drop, he said.
Apple bowed a midtier Watch, the SE, based on the S5 chip but with the same accelerometer, gyroscope, compass and altimeter as the Series 6 Watch, said Williams. It supports fall detection and starts at $279. Series 3 continues at $199.