Apple's monthly TV subscription service could cost less than $40

Apple may have a strategy to compete with existing cable TV services in the United States: offering the service for less than $40 a month . Rod Hall of JP Morgan recently issued a note to investors arguing that a price above $40 a month would be too high.

The incremental cost of cable TV service from a provider like Comcast , plus basic internet, is less than $40 per month, so Hall believes that if Apple plans to bring its service above this price, users will need a good reason to migrate to the company's service.

The Wall Street Journal reported earlier this week that the service could arrive in September at a price of $30 to $40, which would be much more expensive than other services on the market such as Dish Network's Sling TV.

Of course, the price will depend on the exclusivity and offers the service will have . Obviously, a service with the same, or nearly identical, programming to other alternatives or competitors wouldn't make much sense to opt for Apple 's new service , unless you're a die-hard fan.

The company is believed to be in negotiations with ABC, CBS and even Fox , as well as other cable networks owned by Discovery and Viacom.

But in addition to the TV service , Hall also believes the company will launch new hardware for Apple TV and that we'll get a new store to download games and content for Apple TV.