Technology
Wednesday, November 15th, 2023 3:00 pm EDT
Key Points
- Apple Extends Emergency SOS via Satellite for iPhone 14 Users:
- Apple has announced a complimentary one-year extension of its Emergency SOS via satellite service for iPhone 14 users. This safety feature enables users to text emergency services even when outside areas with Wi-Fi or cellular coverage, proving especially valuable in remote situations such as hiking emergencies. Apple highlighted the service’s global impact in saving lives.
- Revenue Opportunity in Recurring Services Business:
- Apple’s decision to eventually charge for the Emergency SOS via satellite feature is seen as a strategic move to create an additional source of recurring revenue for the company’s services business. This segment generated $22.31 billion in sales during Apple’s fiscal fourth quarter. The article notes that Apple has not yet disclosed the pricing details for this feature.
- Competitive Landscape and Continuation of Satellite-Based Safety Features:
- The article contrasts Apple’s commitment to satellite-based safety features with Qualcomm’s decision to terminate its partnership with Iridium for similar services for Android phones. Iridium suggested a lack of interest from Apple’s competitors in incorporating this technology. The complimentary trial of Emergency SOS via satellite is applicable to iPhone 14 users who activated their devices before Nov 15. Additionally, Apple has introduced other satellite-based safety features, such as Roadside Assistance via satellite, which connects users to AAA for vehicle-related issues in areas without cell service or Wi-Fi. This feature is free for iPhone 15 users for two years.
Apple has unveiled an extension of its safety service, Emergency SOS via satellite, offering iPhone 14 users an extra free year of this feature. This service enables users to text emergency services even when they are in areas without Wi-Fi or cellular coverage, proving particularly useful for emergencies in remote locations. While Apple has not disclosed the eventual cost of this feature, it is expected to contribute to the company’s services business revenue when charged. Emergency SOS via satellite has been credited with saving lives globally.
Qualcomm recently terminated its partnership with Iridium, a satellite communications company, to provide similar satellite-to-phone services for Android phones, citing a lack of interest from smartphone manufacturers. In contrast, Apple continues to invest in satellite-based safety features. The free trial of Emergency SOS via satellite applies to iPhone 14 users who activated their devices before Nov 15. This service is also available to users of the recently launched iPhone 15.
Apple previously introduced additional satellite-based safety features, including Roadside Assistance via satellite, which connects users to AAA for vehicle-related issues in areas without cellular or Wi-Fi coverage. This feature is free for iPhone 15 users for two years. Apple’s services business generated $22.31 billion in sales during the fiscal fourth quarter. Despite the lack of details on the cost, the extension of Emergency SOS via satellite is expected to contribute to Apple’s recurring revenue sources. On the day of the announcement, Apple’s shares were up by less than 1%.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/15/apple-iphone-14-gets-another-free-year-of-satellite-emergency-sos.html
