Apple could create a “360-degree bundle” encompassing both hardware and software. Indeed, the company is “uniquely positioned” to pull this off, according to Gene Munster and David Stokman of Loup Ventures.

Customers Ready for Total Apple Bundle

In a recent post, the pair wrote:

First, the fast pace of tech innovation leads consumers to want to own the latest and greatest. Subscriptions are an answer to this dynamic, as they offer greater flexibility to upgrade more quickly because consumers don’t absorb the full purchase price upfront.

Furthermore, they said that “consumers, particularly millennials and the front end of Gen Z, tend to have a rent vs. buy mentality.” Overall then, customers are predisposed to such an idea.

In addition, “Apple is uniquely positioned to expand its hardware subscriptions,” said Mr. Munster and Mr. Stokman, noting the existing iPhone trade-in program. They also said that the company has improved its returns mechanism, crucial to such an offer. This is all in addition to the fact that “about 55% of the company’s revenue can be purchased as a subscription,” already. By comparison, Google and Samsung would struggle to provide a competing offer. “Devices decline in value at a faster rate compared to Apple,” wrote the investors, while Samsung’s “product line lacks integration between its hardware and software.”

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