Here's why Apple's second-largest business unit will continue to grow regardless of iPhone sales

Apple has put itself in a position that will allow it to generate tens of billions of dollars each year in Services revenue even if it doesn't approach peak iPhone sales ever again. That was the main goal behind Apple's plan to double Services revenue from $25 billion to $50 billion by the fiscal year 2020.

Apple also jacked up the monthly price of an individual Apple TV+ subscription from $4.99 to $6.99 per month. Apple did have an explanation for the 40% price increase as it blamed the rising price of content for the increased cost of the service.The price changes also affected the Apple One bundle packages. The individual plan consisting of Apple Music, Apple TV+, Apple Arcade, and 50GB of iCloud+ storage received a price hike of $2 a month to $16.95.

These price hikes might not be good for users but they are good for investors who are now conditioned on seeing a nice percentage increase in Services revenue each quarter. Apple doesn't break down its Services segment by category but it did say that record revenue was achieved in both payments and cloud services during the fiscal first quarter of 2023.Also helping to drive Services revenue higher, Apple announced last week that it now has 2 billion active devices. Approximately 1.

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