Apple makes a big leap in subscriptions as it becomes the first trillion-dollar company

Apple makes a big leap in subscriptions as it becomes the first trillion-dollar company When it comes to subscriptions, you almost always tend to think of Amazon ahead of the other technology giants. However, Apple is fast becoming a significant player in the space with the company reportedly selling 300 million subscriptions in the past year. Moreover, Apple has also become the first trillion-dollar company pipping the likes of Amazon and Alphabet. In other headlines this week, we look at BMW which has slashed subscription prices for its entry level cars. We also find out how popular running and cycling app Strava has modularised its older subscription model for more flexibility. And finally, we see how Flipkart’s new loyalty program will take on Amazon Prime in India.

Apple’s subscription business is flourishing

Let’s face it, Apple is not just about hardware devices anymore. By selling 300 million subscriptions in the last year, Apple has ensured that recurring revenue now forms a significant proportion of its revenue. While the company has not revealed the standalone subscription revenue numbers, Apple’s services business (which includes one-time sales, Apple Pay digital payments and Apple Care customer support along with subscription revenues) has accounted for $9.5 billion in revenue in the last quarter, an increase of 31% over the last year. Undoubtedly, subscriptions form a huge chunk of the ever-increasing pie. Apple also plans to bundle its news, tv and music into a subscription service soon. The rise in service revenues combined with blockbuster product sales have also resulted in Apple becoming the first company to acquire a trillion dollar market cap.

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BMW reduces its entry-level monthly subscription fee

In a bid to expand its car subscription program, auto maker BMW has slashed the price of its entry-level monthly subscription from $2,000 to $1,100. The company is currently running a pilot in Nashville, Tennessee. The BMW subscription program allows users to choose between a variety of cars and covers associated costs like insurance and maintenance.

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Strava announces updated subscription plan – Strava Summit

Popular running and cycling app, Strava, has released an updated version of its subscription plan, now called Strava Summit. This plan replaces the earlier Strava Premium, as the company moves away from a one-size-fits-all subscription program. Strava Summit splits the old model into three packs – Training, Safety and Analysis – as it looks to encourage more users to sign up to a paid plan.

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Flipkart to take on Amazon Prime with its own loyalty program

Armed with new firepower after its acquisition by Walmart, India’s biggest e-commerce company Flipkart is all set to launch its own loyalty program called Flipkart Plus. However, this will not be a paid subscription program like Amazon Prime. It will be a points-based program which will give regular Flipkart customers discounts, free and fast product deliveries and rewards on some other allied services. Every purchase will give customers points on the platform. Can Flipkart unsettle Amazon Prime from its pole position?

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Also read: Which will be the first $1 trillion company – Amazon, Apple or Google?