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.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Amazon stock hit hardest after tech earnings bonanza, despite misses by Apple and AlphabetDespite Amazon's mixed fourth-quarter earnings report, analysts were encouraged by the company's potential for long-term growth and efforts to tame expenses. AMZN is a losing business, no wonder 100 PE
Source: CNBC - 🏆 12. / 72 Read more »

Apple earnings: Buy the iPhone maker even after its Q1 miss, analysts sayApple posted its first sales drop since 2019, but analysts say the tech titan's stock is still set to climb nearly 30% over the next year Been apple used since 2005.. just switched to Android and qwndows. I really hope apple picks up again their technology
Source: BusinessInsider - 🏆 729. / 51 Read more »

Apple Earnings Disappoint as Executives Mention 'Challenging Economy' Seven TimesTech giant Apple recently released its quarterly earnings report, with results falling short of analysts' predictions. There is no question where Apple places the blame for its lackluster earnings — during the earnings call, CEO Tim Cook and CFO Luca Maestri mentioned a variation of the phrase 'challenging economy' seven times. I mean you keep making the same phone every few months. Idk... I wonder what next quarter will look like? Woke is broke. Keep it up apple 🙄 lose even more customers
Source: BreitbartNews - 🏆 610. / 51 Read more »