A few hours ago, Apple held their “It’s Show Time” event to unveil a host of new services as they continue to impress upon Wall Street and doubters alike that they are more than a hardware company.
The services announced today included subscriptions for Apple News, Apple Arcade, Apple (Credit) Card, and the Apple TV service.
Strangely, pricing was only announced for Apple News+, which was also the only of the four to be available immediately. The others are still months away – Summer for Apple Card and Fall for Apple Arcade and the Apple TV service (Apple TV+).
As an investor, all of these are welcomed, as recurring revenue helps tie in users and typically is valued at a higher multiple by Wall Street.
Further, adoption of at least one of these services by Apple’s vast user base may allow the company to increase the dividend at a higher rate than they might otherwise have felt comfortable doing over the coming years.
Looking at today’s event solely from the perspective of an interested observer, however, you have to wonder why they again decided to announce something that won’t be available for up to 6 months, especially in the wake of the fumbled AirPower rollout.
That product was announced alongside iPhone 8 in September 2017, at which time the company said it would be available some time in 2018. Eighteen months later that product still has not launched.
Finally, a point which doesn’t matter in the long run, but which gets noticed on days like today, is how stale these events have become from a viewer’s perspective.
Tim Cook is a reliable CEO; boring and steady, which I love as an investor. But boring is not what you want at presentation time, and while he isn’t the only speaker, when he hands it off it is almost always to someone nearly as dull.
A company cannot be expected to be great at all things, but as the stock sold off in the wake of today’s event I had to laugh at the Apple faithful celebrating another great presentation in forums and social media sites while wondering why no one else shared in their enthusiasm.