iPhone maker Apple (AAPL) is eyeing the expansion of its Apple News service in additional countries to earn more revenues for itself and publishers. The app is currently available only in the U.S., Canada, UK, and Australia and reaches roughly 125 million people each month. The Financial Times was the first to report the news.
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Furthermore, Apple seeks to build locally focused news coverage in the UK as well as add its puzzles section in the British country. Puzzles such as Sudoku and word games are Apple News’ exclusive features that are available only in the U.S. and Canada. The list of countries that will be added to Apple’s News portal remains unknown at the moment.
More on Apple News
Apple News was launched in 2015 with a mission to connect more people to the company’s products and apps. The app does not feature much original content but rather gathers news from publishers worldwide and features them after thorough curation. Apple News is preinstalled in the latest iPhones, giving it a lead over competing news apps for all iPhone users.
The app has two offerings; the free service is Apple News, while the subscription service is Apple News+. In the U.S. and the UK, the paid service costs $12.99 and £12.99 per month, respectively. The free service makes money through advertisements, both generated by ads that publishers sell and that Apple sells.
However, some publishers remain disappointed about the ad revenues as Apple does not share any of the user data nor allows targeted advertising on the app. Apple News is part of Apple’s budding Services business segment that includes Apple TV+ and Apple Pay, generating roughly $96 billion in revenues annually.
Here’s Why Publishers Prefer Apple News
Apple News boasts of having around 100 editors who curate and pick topics to be promoted on the app. While there remains no bias, many of the top stories belong to publications such as the Wall Street Journal in the U.S. and the Guardian in the UK. In the current scenario, publishers are challenged with changing demographics and falling readership. Indeed, Apple News is able to garner much attention from iPhone users, making it a healthy revenue source for publishers.
Several news publications have found that readers through Apple News account for a meaningful chunk of audiences for them. The publishers only have to tweak their existing stories a bit and send them to the Apple News team in hopes that they will be picked and featured on the app. Currently, Apple News+ has roughly 450 publishers globally. These are paid on the amount of time spent or based on engaged minutes. Meanwhile, for the free service, publishers can either take 100% of the revenue generated from ads they sell or 70% of ads sold by Apple.
Is AAPL a Good Stock to Buy?
Analysts currently remain divided on Apple stock owing to its falling iPhone sales in China. On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 19 Buys, seven Holds, and three Sell ratings. Also, the average Apple price target of $244.77 implies 1.1% upside potential from current levels. In the past year, AAPL shares have gained 31.2%.
