The subscription model has officially taken over the app world. Google has launched its answer to Apple Arcade with Play Pass, a subscription service for games and apps. Meanwhile, a survey shows that iPhone sales might be below expectations because users are waiting for the 5G version. Learn all about it in this week’s Mobile Monday!
Google Launches Play Pass Game and App subscription
On the heels of the Apple Arcade’s launch, Google has launched today its own subscription-based service named Google Play Pass. Unlike Apple’s service, Google’s version will include both games and apps with over 350 titles available with no download fees, in-app purchases or ads. Google Play Pass will be free for ten days and then will cost $1.99 per month for a year. After the first year, the subscription will cost $4.99 a month, the same cost as Apple Arcade.
At the time of launch, Google’s catalog is more than triple the size of Apple’s because it includes more than just exclusive games. While Apple Arcade hosts high-quality games that can be played across platforms, Play pass includes titles used for utility purposes like photo and weather apps. Apple and Google’s deals with developers are not publicly known but Google has revealed that the more a title gets downloaded through Play Pass, the more revenue developers will receive on a recurring basis. While this is good news for app publishers, it remains to be seen if revenue from a subscription service could compare to earnings from ads or in-app purchases.
Will 5G Phones Get Apple Out of its Rut?
While you’re likely to see a line outside of the Apple Store these days, a study reveals that consumer interest in Apple’s latest iPhone lineup is lower than last year. Even though the new $50 less than last year’s model, the study from Piper Jaffray states that customers may be holding out for 5G models that the company is reportedly preparing to release next year. The survey of over 1,500 U.S. iPhone users found that 51% said they would buy one of the new versions of the iPhone this year, compared with 69% the previous year.
Despite the price changes, Piper Jaffray’s analysts believe that overall unit sales will remain flat. They predict that iPhone revenue will decline by 1% at the end of fiscal year 2020. However, the firm expects iPhone revenue to grow 2% year over year after Apple launches 5G phones. Since 5G networks are extremely limited in the United States, Apple may be waiting until 5G is more ubiquitous. Until then, Apple is likely looking at another slow year in iPhone sales.
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