- Apple shares are rising Tuesday after Bloomberg reported the company is launching a subscription news service.
- This is part of a broader effort to pivot its focus from devices to services.
- Apple stock got hit in late March, along with the broader tech sector, but remains up for the year.
Apple shares are rallying Tuesday, up 1.5% at $178.46, after Bloomberg reported the tech giant is launching a subscription news service.
The service could launch later this year, and would be an improved version of the current Apple News app, Bloomberg said. The new subscription offering would shift the revenue model from selling advertisements to participating publishers, to sharing subscription revenue with the those publishers, the report added.
The offering would be part of Apple’s broader shift from purely an iPhone-focused company to a services business. Morgan Stanley wrote in a March note that its sees “increasing value in the Apple platform, particularly through services monetization,” and that longer-term growth will depend on the maturation of its services business.
Apple shares took a hit in late March, falling as much as 10.4%, along with many other companies listed on the tech-heavy Nasdaq, after Facebook’s Cambridge Analytica data scandal and President Donald Trump’s crackdown on Chinese investment in US technology rattled investors.
Apple has weathered the storm and is up 3.63% on the year.