Apple News as a Killer App?

While iPhones naturally dominate the discussion of Apple as a company and investment, frequently we look at other parts of the business. The last couple of weeks we focused on iPads. Other times we look at other products and accessories like AirPods. Apple’s services offerings also merit attention, as Apple looks to grow other sources of revenue that fit naturally with its hardware offerings.

Apple News is one such service. iPhone and other device owners can subscribe to Apple News directly at $12.99 per month or use it as part of a comprehensive Apple One subscription costing $32.99 per month. An interesting report suggests Apple News has become a critical distribution channel for content publishers, providing an important customer market for online publishers that are facing challenges monetizing their content. 

Apple News has indeed established a decent hold over a significant share of US Apple customers. In this respect, Apple might finally have another must-have app that meets a customer need and is a welcome intermediary for content providers.

Specifically, in the twelve months ending March 2024, 24% of Apple buyers said they use Apple News, either the stand-alone version or as part of Apple One (Chart 1).