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Apple's services category, which encompasses the App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, Apple Fitness+, iCloud+, and more, earned a total of $78 billion in revenue in fiscal 2022, according to today's earnings results for the fourth fiscal quarter of the year.

appleservices-16x9.jpg

The services category earned $19 billion during the quarter, up almost a billion from the $18 billion earned in the year-ago quarter. Services overall earned $10 billion more in 2022 than in 2021, with Apple seeing strong growth. Services subscribers have increased significantly, with Apple reporting more than 900 million paying subscribers, up 155 million since last year.

Apple earlier this week said that it is going to increase the price of Apple TV+ and Apple Music, with individual Apple Music subscriptions increasing by $1 and Apple TV+ subscriptions increasing by $2.

Apple One Bundles have also increased in price by $2 to $3, with Apple blaming the Apple Music price hikes on licensing fees and the Apple TV+ increase on its growing catalog of content.

Article Link: Apple's Services Earned $78B in Fiscal 2022, Up $10B Year Over Year
 
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anshuvorty

macrumors 68030
Sep 1, 2010
2,933
3,885
California, USA
$10B increase year over year only for services? Damn no wonder they raise the price of their services and Apple One, they must be ruined
The company that is hurting in the big 3 (Meta, Google, and Apple) is Meta…karmic justice IMHO…

Long time coming…corporate greed and ignoring ethics can only get you so far…
 

needsomecoffee

macrumors 6502
May 6, 2008
336
773
Seattle
I think I read in an analysis of Google's recent financials that Apple got $20B from Google for keeping G as the primary search tool. I think that was for the quarter. Hard to imagine... likely 99+% profit. (The analysis was how costly it has been for G. to have messed up Android for high-end phones.) Note: Recollection so don't hold me to strict accountability,
 
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R3k

macrumors 65816
Sep 7, 2011
1,425
1,388
Sep 7, 2011
Apple gives you value, but they definitely will not compromise on profit, they’ve been that way for as long as I can remember.
Dunno is Value is really the right term tbh. Apple makes some of the best ****, and though their hardware can last a long time and the resale is high, I wouldn't go to Apple if value is a primary concern.
 
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R3k

macrumors 65816
Sep 7, 2011
1,425
1,388
Sep 7, 2011
The company that is hurting in the big 3 (Meta, Google, and Apple) is Meta…karmic justice IMHO…

Long time coming…corporate greed and ignoring ethics can only get you so far…
Meta / Facebook is just a big bubble in the end imo. They're trying to convert it, but while Apple are making some of the most solid consumer hardware you can get while Google Search, Maps, and email are the best around.... Facebook..well, people are using Facebook because people are using Facebook. Meta gets a pile of bad press, sure, easy pickings and not all deserved. Im also fine with peoples infos being sold so they can use the service for "free". Still, Facebook would probably be overtaken by now if it hadn't destroyed or bought up any competition that makes traction. Am I going too far in feeling they're a cancer? Can the web really move on / up until they're gone?
 
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Unregistered 4U

macrumors G3
Jul 22, 2002
8,226
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Every iPad and iPhone feeds into services. Likely at a much greater rate than Macs. Just another reason why it may appear Apple focuses on having a good spread of those products.
 

kevhackett

macrumors newbie
Oct 27, 2017
3
11
I currently subscribe to the Apple One Premier plan and have been on the fence lately regarding the value for the money. I’ve realized that me and my family only use iCloud+, occasionally Apple TV+, and occasionally Apple News+. When I signed up, I decided to go ahead with Apple One Premier because it was only a couple dollars more and I got more. Ultimately, I could do without Apple TV+ and Apple News+. The other services were rarely or never used. With the announcement of the price hike that’s roughly $6 more for services that I definitely don’t use if I just sign up for iCloud+, TV+, and News+. Time to downgrade and while I’m at it, I’m just keeping iCloud+ and will save the $23/month.
 

ghanwani

macrumors 68040
Dec 8, 2008
3,923
4,629
They just raised prices, so automatic 10% increase in the forecasted number for next year.
 

Abazigal

Contributor
Jul 18, 2011
17,346
17,797
Singapore
$10B increase year over year only for services? Damn no wonder they raise the price of their services and Apple One, they must be ruined

I think again, people confuse cause with effect.

TV+ increasing by 40% is in line with Disney+ doing the same. It also tells us that Apple is fairly pleased with subscriber numbers and is fairly confident that its expanding video catalogue will be effective in either retaining subscribers, or getting them to return in the future (in the case of people who switch between streaming services).

Same with music streaming. The real winner here is music labels (the main reason for the price hike). We will likely see the same move from Spotify in time. The reality is that Spotify has made us too accustomed to artificially low content streaming prices. In time, I expect prices to continue rising to more accurately the true costs and the value they bring to users.

What this tells us is that Apple believes consumers will continue to find value with their services and their profitability is a direct result of their ability to create great product experiences, and them not hesitating in charging what they believe is a fair price for the value these products offer.

Looking at their earnings, it’s hard to argue with the results. The Apple ecosystem is basically built around people who spend money, and everyone knows this.
 

webkit

macrumors 68000
Jan 14, 2021
1,518
1,078
United States
I think I read in an analysis of Google's recent financials that Apple got $20B from Google for keeping G as the primary search tool. I think that was for the quarter. Hard to imagine... likely 99+% profit. (The analysis was how costly it has been for G. to have messed up Android for high-end phones.) Note: Recollection so don't hold me to strict accountability,

The $20 billion figure, if accurate, would be for the year which means that around 25% of Apple's services revenue comes from Google's payment to keep it as the default search on Safari.

The deal has Apple using its dominance in mobile OS (in particular) to help Google maintain its dominance in search.
 
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jayducharme

macrumors 601
Jun 22, 2006
4,281
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The thick of it
I had a good laugh when Tim said that some of the increase in the Apple Music price would be passed on to the artists. Maybe Taylor Swift, Adele, Ed Sheeran and the like will do all right. But unless they have millions (or billions) of streams, artists collect next to nothing from streaming services (which I guess is better than nothing at all). Physical media was far more profitable.
 

Unregistered 4U

macrumors G3
Jul 22, 2002
8,226
5,853
I had a good laugh when Tim said that some of the increase in the Apple Music price would be passed on to the artists. Maybe Taylor Swift, Adele, Ed Sheeran and the like will do all right. But unless they have millions (or billions) of streams, artists collect next to nothing from streaming services (which I guess is better than nothing at all). Physical media was far more profitable.
I don’t think so… because the record companies could hide a LOT of costs in the production and distribution of physical media, lots of middle men they can pretend to be paying. Anyone who is small enough to not have name recognition and a high powered contract attorney is going to get the short end of the stick regardless of if it’s physical, download, or stream.

EDIT: I take that back a little because, for an artist that tours, they could sell the physical media at the venues. You can’t sell a streaming service at venues. :) Then again, those making BIG money selling physical media at sold out venues are just the Taylor Swift’s, Adele’s, and Ed Sheeran’s all over again.
 

ackmondual

macrumors 68020
Dec 23, 2014
2,143
940
U.S.A., Earth
Every iPad and iPhone feeds into services. Likely at a much greater rate than Macs. Just another reason why it may appear Apple focuses on having a good spread of those products.
That was a main drive for lowering the price of an iPad to as low as $330. At that point, they need more devices to tap into the subscription market. I'm still curious to hear how many people are on free trials of AA and ATV+. Hearing it as is, you'd think it would be every other other user [shrug]
 
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jimbobb24

macrumors 68030
Jun 6, 2005
2,510
4,034
At this point we cannot live without apple music but it sure is a mess to manage family sharing. Trying to change the person in charge of it creates disasters, half the kids can play the music but dont show in family sharing. Not sure why it is so messy and why I cannot manage it easier online.
 

Confused-User

macrumors regular
Oct 14, 2014
118
89
I don't like price hikes any more than anyone else, but... raising Apple Music by $1 doesn't even keep up with the last two years of inflation. It's hardly a giant cash grab.
 
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laurieballard

macrumors regular
Apr 12, 2016
142
100
Apple one plan is a no brainer if you share it with family and they all chip in.

There are four of us sharing it so its £7.50 a month each. I pay it and they all send me £7.50 each month via standing order. Seems a good deal considering what we each get for that.

If its just you or even as a couple, I don't think the value is there unless you really do use all of the services regularly.

Moving from Spotify to Apple Music has been difficult, the interface is nowhere near as easy to use for any of us but the trade off is worth it considering the cost savings and integration with everything else Apple.
 
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