Apple Inc (AAPL) was able to make it to the “holiday season” and introduce two potentially lucrative products from December 14: new Max headphones for airpods and Apple Fitness+ subscriptions. In 2021, new products are likely to become new growth drivers.
Fans of Apple products have been waiting for the last two new products in 2020, representing an opportunity for the company to raise profits in the holiday quarter and next year.
New Max AirPods
Airpods wireless headphones have been a big hit with customers so far – this success and love for the Apple chose to use to sell a premium model that is very different in design and functionality.
This year, Apple is expected to sell 82 million AirPods. AirPods and Apple Watch have helped the company expand its business in wearable devices to the point that it would rank 130th in the Fortune 500 if it were a company.
The AirPods Max, revealed on Tuesday, features active noise cancellation and two premium sound quality chips. At $549, the price of the new model is more than double the price of the AirPods Pro at $249, but with this price, the product will bring in surpassing margins to that of iPhone.
The latest gadget will greatly boost Apple’s financial results if the product achieves even a small share of the popularity achieved by the initial AirPods and AirPods Pro.
Launch of Fitness+
Due to the global COVID-19 pandemic, the online fitness and home fitness equipment company Peloton (PTON) has been the biggest beneficiary of the move from gyms to home workout facilities.
The company moved to scale up production as demand grew, the number of customers paying for online fitness classes rose to 1.33 million up 137 percent from a year earlier, and Peloton shares increased 316.37 percent.
Peloton shares closed down 6.3 percent on Wednesday in the midst of news of the Apple Fitness+ launch date on December 14. The technology giant will compete dramatically and attract a portion of the audience. In addition, the launch of Fitness+ is another opportunity for Apple to improve its overall product and service ecosystem.
For the supplier of smart watches and portable headphones-convenient gadgets for fitness classes, launching this service is a logical move.
Subscription sales generate Apple’s steady and increasing revenue and hold its consumers in the same ecosystem, potentially contributing to potential purchases of goods. Apple’s “Package” discounts and deals act as bait for the consumer.
Thus, during the current holiday season and in 2021, two new Apple products will draw a lot of interested customers and become important factors for the company’s profit growth.
Apple was up 1.25% on Thursday at $123.24.