PYMNTS-MonitorEdge-May-2024

Newly Launched Apple Arcade Offers 100 Monthly Games For $4.99

Apple has officially released the Apple arcade, a gaming subscription service that costs $4.99 a month, according to a report by CNBC.

The first month of the service will be free for those who want to try the service out, and it’s available as part of Apple’s latest OS upgrade, iOS 13. The service will come to Apple TV and iPads later in the month, and it will be available on Mac computers in October.

The service, which was just announced earlier this year, has games from notable gaming companies like Konami, Ubisoft, Lego and others. The move is a big part of a services push by Apple, to make up for lagging iPhone sales and as a way to grow revenue from its millions of users.

The games do not have any ads or in-app purchases. It’s available on iPhones as a tab at the bottom of the app store. 

Earlier this year, Wall Street got more bullish on Apple due to a strong showing from its services sector. 

The growth in Apple’s services business, which includes its App Store, Apple Music and iCloud, boosted analysts’ — such as Bank of America’s Wamsi Mohan — views of Apple. Bank of America reiterated its buy rating on Apple, pointing to growth in services. In June, Apple said sales increased 31 percent — higher than the 26 percent year-over-year growth Wall Street was looking for.

“This was the best quarter ever for services, with Apple reporting strength from the App Store, Apple Music, Apple Care and Apple Pay,” Mohan said in a research note at the time. “Management remains confident in doubling its F2016 services revenue by F2020.” Mohan reiterated his $230 target price for Apple’s stock, which marks a 21 percent increase from where the stock closed Tuesday.

Meanwhile, Morgan Stanley said services growth at Apple could make up for any weakness the iPhone market sees for its devices. “We see more upside than downside risk to the upcoming iPhone product cycle and a building services narrative. Even if device revenue growth slows, services and wearables can pick up the slack,” analyst Katy Huberty said.    

PYMNTS-MonitorEdge-May-2024