The tech company on September 7 announced Emergency SOS via satellite, a new feature available on its latest iPhones that connects users to emergency services via a satellite dish built into the hardware. Apple said the service would be offered free for two years, but did not say how much it would cost after that period. Apple did not respond to a request for future pricing. Analysts say the company is leaning into existing credibility and health and fitness themes, particularly after the success of the Apple Watch as a fitness-focused device. The big question Apple is betting on: whether security alone will be a big enough driver to attract customers to a subscription-style service. Consumers may end up being attracted to the array of services available on the iPhone, aside from emergency SOS. “We’ve generally seen in our work that consumer upgrades are driven more by a collection of features,” said Samik Chatterjee, IT Hardware Analyst at JPMorgan. “When you think about what Apple brings with its ecosystem, there’s a lot in the ease of use of the hardware and also the services you can consume on them, including security now.” People visit the Apple store at the Cumberland Mall in Atlanta, Georgia, U.S., May 3, 2022. REUTERS/Alyssa Pointer A potential security subscription will come with a variety of other wallet-draining offerings from Apple, including rival Peloton’s Apple Fitness (which costs $9.99 a month), its own in-house streaming service, Apple TV+ and its curated games subscription, Apple Arcade both for $4.99 per month. The company also offers a bundle version, Apple One for $14.95 a month, for its most dedicated subscribers and even offers a hardware subscription through its iPhone Upgrade Program, which promises subscribers the latest iPhone every year for 39 $.50 per month. The story continues The concept of security subscriptions is not entirely new. Automaker General Motors has long offered its OnStar vehicle service, starting at $24.99 a month, that allows subscribers to call emergency services. And navigation-focused competitor Garmin sells secure calling subscriptions for its satellite-enabled devices — complete with an easy-to-activate SOS button. Garmin’s inReach satellite subscription plan currently costs $14.95 per month. There is a clear overhead cost to Apple in providing emergency SOS via satellite. During the tech company’s fall “Far Out” event, Apple unveiled new iPhones equipped with satellite antennas that could communicate with emergency services without using a cellular network. A guest looks at the new iPhone 14 at an Apple event at its headquarters in Cupertino, California, U.S., September 7, 2022. REUTERS/Carlos Barria The devices prompt users to send a specially formatted text message via satellite to a center staffed by Apple that calls for help on the user’s behalf. The service will initially be available to users in the US and Canada starting in November, when the first devices with the new antennas go on sale. For Apple, whose previous offerings have all been decidedly more mainstream, a subscription that focuses on the personal security of its users still relies on user buy-in. “The average consumer, even if they’re an outdoors person going to areas without cell service, it’s going to take a while for them to figure this out,” says Ryan Reith, VP of Consumer Devices at IDC Group. However, Reith says that Apple’s SOS feature could lay the groundwork for a wider use of satellites for communication beyond simple emergencies — and use security to convince users to pay for the service once it expires. period of two years. “I see this as the first step in what they want to do to leverage satellite communications for their device.” The hook for consumers may be in the trial period. “Two years free is absolutely reasonable,” says Reith. “Anyone will get anything for free.” Mike Juang is a senior producer at Yahoo Finance. Follow him on Twitter at @mikejuangnews. Click here for the latest tech business news, reviews and helpful articles on technology and gadgets Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube
