Concerns about slowing growth in the company's all-important iPhone segment had depressed Action Alerts PLUS holding Apple's (AAPL) stock for most of the year. Then the latest iPhone 7 launched in September and all seemed to be right in the world of Apple. However, as concerns about smartphone saturation continue to put pressure on growth, analysts at Goldman Sachs believe Apple's salvation could lie in subscription-based content offerings.
"We think Apple should launch a subscription bundle as a way to reinforce iPhone loyalty and leverage it into content," wrote Goldman analyst Simona Jankowski in a note Sunday.
Jankowski and her team modeled a $50-per-month subscription model that includes the iPhone, Apple Music, Apple TV, access to the iTunes library of TV shows and movies, Apple original content and, potentially, live sports.
The subscription service would serve two purposes for the company, according to Jankowski -- help fend off smartphone commoditization and position it well against Growth Seeker holding Amazon (AMZN) and fellow Action Alerts PLUS holding Alphabet (GOOGL) .
Launching that type of subscription package may be easier said than done, according to AAP senior analyst Scott Berman. In spite of the obvious financial hurdles of starting and promoting that type of service, Berman believes such an initiative would be an invaluable expansion of Apple's current services offering.