Apple and United Airlines are in talks about upgrading the airline’s terminal at San Francisco International Airport, Bloomberg is reporting. It’s not yet known exactly what the upgrades will entail.
“The Apple team in San Francisco has been in our baggage hold areas, customer service and the lobbies,” said Linda Jojo, executive vice president at United Airlines Holdings Inc. “I’m being deliberately vague.”
Apple utilizes United Airlines as a corporate partner for its employees, so the partnership makes sense. Last year, United mistakenly revealed that Apple spends about $150 million a year with United on flights for its employees, including 50 business class seats a day from San Francisco to China. United said it bought over 100,000 Apple products for its employees.
In other Apple News, Morgan Stanley analyst Katy Huberty has predicted that Apple TV+, the new streaming service from Apple, will be highly successful and help Apple’s services offerings grow 20 percent next year.
The service will cost $4.99 a month and will debut in November. Subscribers will get access to TV shows and movies provided by Apple, and customers who purchase a new iPhone or iPad will get the service free for a year.
The prediction includes iPhone sales, which are predicted to jump as “growth as replacement cycles peak.” Morgan Stanley increased its price target for shares in the company from $247 to $289, which is a rise of 17 percent.
“With an attractive price point at $4.99/month, and wide initial distribution to the Apple installed base via the bundled free year offer, we estimate Apple TV+ can become a $9 [billion] revenue business with 136 [million] paid subscribers by FY25, assuming just [one] in every 10 Apple [users pay] for the Service by FY25,” Huberty wrote.
One concern shared by investors is how Apple is going to pay for the free subscriptions. Apple said: “We do not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results.”