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What you need to know

  • Loup Ventures believes Apple's next paid service may come from an existing default app.
  • Analyst Mike Murphy believes we could see something like Apple Podcasts+ or Apple Stocks+.

As reported by AppleInsider, venture capital firm Loup Ventures believes Apple's next paid service may come from another one of its pre-installed apps.

In a research note, Loup Ventures' Andrew Murphy imagines new Apple services, like "Stocks+" or "Mail+," that add new features to existing or default Apple platforms. Murphy notes that Apple services have seen massive success in the past few years. The sector grew 16% year-over-year to $53.7 billion in 2020, and Loup Ventures forecasts that it'll grow 15% in 2021.

Murphy says that Apple's recent services growth "illustrates the power of services built on top of default apps." Loup Ventures points to Apple Fitness+, which was built into the Fitness app that comes preinstalled on the iPhone when you purchase an Apple Watch.

"Although Peloton digital and other workout offerings have long existed within Apple's ecosystem, Fitness+ goes beyond what these digital workout platforms can deliver through Apple's GymKit API, and offers more than the base Fitness app."

The analyst has ideas on a number of potential premium services that could come to Apple's existing default apps:

Podcasts+: Murphy believes that original, tier-one content could drive interest to the Podcasts platform and "add unique value to the suite of Apple audio services."

Mail+: A premium Mail app could help Apple tap the personal productivity market. Murphy imagines a system that could aid in inbox management, scheduling, and automating other daily tasks.

Maps+: Rather than a simple navigation app, Murphy thinks Apple could monetize Maps by add a platform that can suggest "the best destination based on your desired outcome."

Stocks+: Using the Apple Card as an example of the company's lack of hesitation in the financial market, Murphy believes Apple could offer trading services or robo-advisory services like existing platforms Robinhood and Wealthfront.

Health+: Loup Ventures doesn't have a clear vision for "Health+," but notes that Cook's emphasis on health technology and the company's focus on privacy and security could be a boon to a telehealth or digital medicine platform.

Murphy closed by echoing other analysts believing that Apple's services business will play a major role in the company reaching a $3 trillion market capitalization.

"The recent acceleration in Services growth is indicative of an acceleration in a much broader digital transformation. Apple is powering this transformation around the world, changing how we live, work, and play. New services will make Apple's impact on our lives even deeper and broader, capturing value in new ways and driving the company toward a $3T market cap."