Reportedly, Apple (AAPL - Free Report) may launch a low-cost streaming TV dongle, per The Information.
The device, which is expected to support Apple’s upcoming streaming service, might help the company expand its content reach to users, especially the ones who do not own Apple devices.
Notably, reports suggested that the company may give away its streaming content for free to Apple device owners only.
With the recent production cuts and lower demand for Apple iPhone products coupled with increasing iPhone prices, the company is looking at new avenues to promote its services, in a bid to prevent limited user consumption.
With Apple looking to sell a standalone subscription for its original content, per Recode, other services such as Apple music and Apple news are expected to be part of the device.
Apple Faces Stiff Competition in Streaming Market
Apple’s device may be similar to existing streaming dongles like Alphabet’s (GOOGL - Free Report) Google Chromecast, Amazon’s (AMZN - Free Report) Fire TV and Roku’s (ROKU - Free Report) streaming stick.
However, the price of Apple’s dongle is expected to be significantly lower than its premium set-top streaming box, the Apple TV, which is losing market share in the Internet video streaming device space of late.
Although Apple has a loyal customer base, expanding its reach to global audience is expected to help the company fend off competition from the likes of Netflix and Amazon Prime. Both the companies are not only expanding their global presence but also increasingly creating local content to boost market share.
However, Apple’s upcoming streaming service is expected to increase the share of service revenues, which emerged as the new cash cow for the company over the last few quarters. Notably, the business posted revenues of $9.981 billion in fourth-quarter fiscal 2018, up 17% year over year.
Apple Inc. Revenue (TTM)