Apple launches app for party invitations in recurring revenue push

Technology

In this article

Apple CEO Tim Cook gestures as he poses on the red carpet during arrivals for the screening of the mini-series “Disclaimer”, out of competition, at the 81st Venice Film Festival, in Venice, Italy August 29, 2024. 
Louisa Gouliamaki | Reuters

Apple on Tuesday released a new app for creating invitations and sending them to contacts. The app is called Apple Invites.

Users can create events, such as birthdays, graduations and housewarming parties, and manage RSVPs and guest lists through the app. Apple Invites is also available on the web.

While users won’t need an iPhone to RSVP to events, they will need a paid iCloud+ subscription to send invites.

The launch is the latest example of Apple’s services strategy, whe company introduces new paid subscriptions that are marketed to its installed base of 2.35 billion active devices. Apple’s Services division has become the company’s second largest business behind the iPhone, reporting $25 billion in sales in the December quarter.

Services has also become a big source of Apple’s profit, with a gross margin of 74%. The growth of Apple’s services division is helping Apple’s overall margins expand in recent quarters after years of staying flat. Apple’s services business also includes its search deal with Google, Apple Pay payments and device warranties.

Apple’s Invites app
Apple

With Invites, Apple is taking on Partiful, a startup founded in 2020 that allows users to make and send event invites. Partiful did not immediately respond to a request for comment.

An iCloud+ subscription starts at $1 per month for 50GB of storage, and it’s included in Apple’s other subscription bundles, ranging up to a $38-per-month subscription that also includes the company’s TV service, Apple Music and access to games, fitness classes and news.

Invites also includes Apple Intelligence, the company’s suite of artificial intelligence software. Apple Intelligence can generate images for invites and help write the invitation with the company’s Writing Tools. Apple Intelligence also has the ability to share a photo album or playlist with an event’s guest list.

While Apple doesn’t charge individually for many of its iCloud+ services, it now has a host of paid features intended to get users to upgrade from free storage. That subscription service offers a VPN-style relay service for private browsing, custom email domains for iCloud, local security camera storage and the ability to generate burner emails.

Apple doesn’t disclose how many iCloud+ subscribers it has. The company last week said that it has 1 billion subscribers, but that figure includes subscriptions to apps through the App Store in addition to its direct iCloud subscriptions.

WATCH: Tariff impact on Apple: Here’s what to know

Articles You May Like

Canada announces plans for 25% tariff on electric vehicles coming from the US
Hyundai and Kia invest in WeaveGrid to power smarter EV charging
Wilson: Focused on Steelers, not on Raiders talk
Insurance unicorn Marshmallow finalises fundraising at £1.5bn valuation
Jeep is launching a new Wagoneer S EV trim soon: Here’s what to expect