Apple One is a great subscription bundle, but it neglects one key audience

Apple One is a great subscription bundle, but it neglects one key audience

  • 22.03.2025 16:36
  • 9to5mac.com
  • Keywords: AI, Startup

Apple One offers three subscription tiers: Individual ($19.95), Family ($26.95), and Premier ($37.95). A fourth tier for students could boost subscriptions by offering discounted access to services like Apple Arcade, Music, TV+, and iCloud+. This would cater to a younger audience and align with Apple's existing student discounts for Apple Music.

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Estimated market influence

Apple

Apple

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Analyst rating: Buy

Apple is the primary company discussed in the article. The author suggests that Apple could benefit from introducing a fourth tier to their subscription service aimed at students.

Context

Analysis of Apple One Subscription Service and Student Tier Proposal

Current Apple One Tiers

  • Individual: $19.95/month
    • Includes: Apple Music, Apple Arcade, Apple TV+, 50GB iCloud+ storage
  • Family: $26.95/month
    • Includes: Apple Music, Apple Arcade, Apple TV+, 200GB iCloud+ storage, Family Sharing
  • Premier: $37.95/month
    • Includes: Apple Music, Apple Arcade, Apple TV+, Fitness+, News+, 2TB iCloud+ storage

Student Discount Precedent

  • Apple Music Student Tier:
    • Priced at $5.99/month (50% off the regular $10.99/month)
    • Includes: Free access to Apple TV+ indefinitely (technically a limited-time perk)

Proposal for Apple One Student Tier

  • Suggested Pricing: ~$10.95/month (similar discount as Apple Music Student)
  • Inclusions:
    • Apple Music, Apple Arcade, Apple TV+, iCloud+ storage
    • Potential long-term benefits: Students may transition to Individual tier post-graduation

Business Insights and Market Implications

  • Market Penetration: Targets younger demographic, potentially increasing subscriber numbers.
  • Competitive Dynamics: Aligns with competitors offering student discounts (e.g., Google One, Microsoft 365).
  • Long-Term Effects: Students may become lifelong Apple users, boosting long-term revenue.
  • Subscriber Growth: A cheaper tier could attract more users, enhancing overall market share.

Strategic Considerations

  • Win-Win Strategy: Attracts students with discounted services while preparing them for future premium subscriptions.
  • Regulatory Compliance: Pricing strategies must comply with local regulations to avoid issues.

This analysis highlights the potential benefits of introducing a student tier, emphasizing both immediate and long-term business advantages.