According to analysts, a year of free Apple TV+ will have a negative effect on Apple's financial income

Goldman Sachs analysts cut the resulting estimate for Apple shares. The year of free Apple TV+ should have a negative impact on the financial results.

But the company's banking and financial analysts do not only calculate the price of the service itself. They point out that Apple gives a much bigger discount when it offers the service for free "bundled" with the hardware it sells.

"According to our calculations, Apple loses an average of $60 when combining a free service and a sold product," writes Rod Hall. "As a result, Apple is shifting money from hardware to services, even though customers won't actually be paying for Apple TV+." While this will be positive for the services segment's results, it will reduce the average equipment selling price (ASP) and margins in the following fiscal quarters (FQ1 20, December).”

Apple, however, defends itself against such a view. In a statement to CNBC, a company spokesperson disputed that Apple TV+ would have any impact on financial results.

"We do not expect that the financial results will be affected in any way after the launch of the Apple TV+ service."

One year free Apple TV+ on company account

The company intends to add a year of Apple TV+ service completely free to every newly sold device from the iPhone, iPad, iPod touch, Apple TV or Mac category. The device must be purchased from the start of the campaign and the service must be activated no later than November.

Other users will pay a monthly subscription of CZK 139. Its price includes 12 original titles for Apple TV+, most of which are series.

Gallery

For All Mankind Apple TV+ fb

See Jason Momoa Apple TV+

Apple TV plus FB

Apple TV Plus

Apple TV+ Oprah

Source: Apple

Apple TV +

However, Apple TV+ will have a tough time in the highly competitive environment. Services such as Netflix, Hulu, HBO GO or the new Disney+ offer much more content for similar money, and also large series such as Star Wars or Marvell.

There is also the question of localization outside of the world's major languages. We still have no idea whether there will be at least Czech subtitles in the service, as dubbing certainly cannot be counted on.

Source: MacRumors