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

[MacRumors]

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.

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

 

[fwmireault]

$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

 

[MrENGLISH]

$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

Exactly what I was about to say. Apple sure is hurting and is not being greedy at all.

 

[anshuvorty]

$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]

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,

 

[Apple_Gabe]

Apple gives you value, but they definitely will not compromise on profit, they’ve been that way for as long as I can remember.

 

[R3k]

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.

 

[Hurda]

Services overall earned $10 billion more in 2022 than in 2021, with Apple seeing strong growth.

No wonder they had to introduce gambling-ads.

 

[R3k]

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?

 

[Unregistered 4U]

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]

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]

They just raised prices, so automatic 10% increase in the forecasted number for next year.

 

[antiprotest]

 

[Abazigal]

$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]

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.

 

[CarAnalogy]

$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

They're about to lose at least one Apple One subscriber over that, so let's see if that gambit pays off. It was already barely justifiable at the current price.

 

[dukebound85]

They're about to lose at least one Apple One subscriber over that, so let's see if that gambit pays off. It was already barely justifiable at the current price.

true that. thinking about dropping it as well

 

[jayducharme]

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.

 

[patent10021]

...

 

[Unregistered 4U]

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]

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]

 

[jimbobb24]

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]

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.

 

[svish]

Services are doing well for Apple! The recent price hikes should further increase revenue.

 

[laurieballard]

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.