CREATE FINANCIAL ANALYSIS... ON APPLE INC $2020.$ ATICLR ATTACHEDOlder Services: AppleCare, iCloud, iTunes Behind Apple Music was AppleCare $($including service parts sales$),$ a collection of extended warranties, protection plans, and other forms of coverage for Apple products, for which customers could pay a single upfront fee or a monthly subscription, which varied depending on the product. AppleCare generated $$6\mathrm{.}5$ billion of revenue in $2019,$ and analysts predicted that AppleCare revenue would continue to grow between $7\%$ and $12\%$ each year, reaching $$10$ billion by $2024\mathrm{.}113$ Revenues from iCloud, which totaled $$2\mathrm{.}5$ billion in revenue in $2019,24\%$ more than the previous year, were also expected to grow at a falling annual rate. Revenues from sales of books, movies, and other media were shrinking year by year, totaling $$4\mathrm{.}7$ billion in $2019,$ a $4\%$ decline from the $2018\mathrm{.}114$

Apple Pay Cook introduced Apple Pay, Apple$$s new mobile payment system, in late $2014\mathrm{.}115$ Most of the nation$$s largest banks and credit card companies had already signed on to support it$,$ and retailers quickly pledged to accept the new payment system in their stores. To set it up$,$ users added

the information for a credit or debit card to Apple Pay on their iPhone, which allowed them to make payments by holding their iPhone or Apple Watch near a wireless payment terminal. Not surprisingly, Apple faced stiff competition from banks, credit card companies, PayPal, and Samsung and Google, which launched their own mobile payment systems. Like with other products and services, Apple touted privacy features like TouchID authentication. In $2019,$ Apple Pay$$s $30$ million users made up $47\%$ of U$.$S$.$ mobile payment users, ahead of Google $(19\%)$ and Samsung $(17\%)\mathrm{.}116$

In $2018,$ Apple entered a partnership with Goldman Sachs to launch an Apple Pay$-$branded credit card$\mathrm{.}117$ Users could make payments through Apple Pay and receive $2\%$ cash back or$,$ if mobile payments were not an option, use a physical card$\mathrm{.}118$ Instead of plastic, the Apple Card was made of titanium and, as an added security feature, did not have a credit card number printed on it$.$ According to one estimate, Apple Pay revenues had grown from $$11$ million in $2015$ to $$988$ million in $2019\mathrm{.}119$

Apple TV$+$ Apple announced in August $2017$ that it would invest $$1$ billion in procuring and producing original content over the next year. Apple officially launched Apple TV$+$ in November $2019,$ a new service that cost $$4\mathrm{.}99$ per month and came free for one year with some Apple devices. Original content boasted a lineup from Steven Spielberg, J$.$J$.$ Abrams, and Oprah Winfrey. In total, Apple had committed more than $$6$ billion to new shows and movies, matching Amazon$$s spending on Prime content in $2019,$ but still far below Netflix$$s $$15$ billion in content spending in $2019\mathrm{.}120$ Netflix also enabled its service on virtually every platform: users could consume Netflix on all PCs$,$ smartphones, tablets, smart TVs$,$ Roku, etc.

Despite enormous budgets, Apple TV$+$s first slate of shows received poor reviews by critics$\mathrm{.}121$ The response from viewers was more positive: millions of users were using the service in its first week after launch, and most who watched one episode of a TV$+$ show went on to watch the next. $122$ According to one estimate, the service had signed up more than $33$ million subscribers, putting TV$+$ ahead of Hulu $(32$ million$)$ and Disney$+(29$ million$),$ but the vast majority had likely received their first year free with the purchase of an Apple product$\mathrm{.}123$

Apple Arcade Apple launched Apple Arcade, its video game subscription service, in September $2019.$ Charging $$4\mathrm{.}99$ per month for access to $100$ games exclusive to Apple, users could play games on multiple Apple devices including the iPhone, the iPad, and Apple TV$\mathrm{.}124$ At the time, players in the video game subscription space were numerous and diverse: prices ranged from $$5$ to $$15$ per month, catalogs ranged from $100$ to more than $800$ titles, and some services provided limited access to games before their official release$\mathrm{.}125$ Microsoft did not release a subscriber count for its Game Pass service, but according to one estimate, it was the most popular video game subscription service with $9\mathrm{.}5$ million monthly users at the end of $2019$; EA access, meanwhile, had $5$ million subscribers, and PlayStation now had $1$ million$\mathrm{.}126$ According to one estimate, Apple Arcade would reach $12$ million subscribers by the end of $2020\mathrm{.}127$

Apple News$+$ Apple$$s first dedicated news application was Newsstand, which displayed newspapers and magazines that could be purchased individually or through an in$-$app subscription. Apple replaced Newsstand with News, a free news aggregator that presented articles in a personalized feed, in $2015.$ News was similar to many news$-$reading apps already on the market, particularly Flipboard, which would continue to be Apple$$s biggest competition. In $2019,$ Apple introduced News$+,$ a premium version of News that featured more content, including from The Wall Street Journal, and cost $$9\mathrm{.}99$ per month. According to Apple, the News app.