Encouraged by a survey that found 70% of iPhone users subscribed to at least one streaming service and that 56% were interested in Apple One.
From a note to clients by analyst Amit Daryanani that landed on my desktop Sunday:
All You Need to Know: We recently conducted a consumer survey to gauge interest levels across AAPL’s recent services bundle offering (Apple One). Key points from the survey:
- ~70% of iPhone users subscribe to streaming services (28% SPOT, 20% AAPL & 15% Prime).
- The 56% of current streaming subscribers (40% of aggregate iPhone users) interested in Apple One bundles was well above the 20% of iPhone users who subscribe to Apple Music, which should help Music become the dominant streaming platform on the iPhone.
- ~72% of Apple Music subscribers are interested in the bundle offerings, ~56% of SPOT users and ~47% of Prime Music users.
- iCloud has the strongest adoption with 50% of iPhone users already subscribing to this.
- In terms of interest in Apple Bundles – the interest was 31% to Apple One, 18% Apple One Family and 10% Apple Premium.
Net/net: We think Apple One bundle is a compelling value proposition and should bolster services acceleration by “few hundred basis points” as it uplifts ARPU. Furthermore, we think it will help enable Apple to win Music wars and draw incremental interest to offerings like Fitness+, Arcade & News.
Maintains outperform rating, raises target to $135 from $130.
My take: The minimum raise.