Apple raises prices on key subscription services
Apple raises prices on key subscription services.
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Apple isn't just counting on customers to keep buying iPhones. It also expects them to keep paying every month long after they've bought one.
While Apple built its reputation selling cutting-edge devices, its fastest-growing profit engine has become Services, the business that keeps generating revenue after customers leave the store.
Despite its name, Apple's Services segment is about far more than servicing devices.
Apple's Services segment is the catch-all for all the ways the company makes money after a device is already in a customer's hands. That includes the commissions the company gets when you pay for something in the app store, or buy an in-app service from a downloaded app.
It also includes subscriptions like Apple Music, TV+, and iCloud+, AppleCare warranties, the multibillion-dollar licensing payment Google makes to stay Safari's default search engine, advertising, and Apple Pay.
It's a business that might not get a lot of media attention, but it provided roughly a quarter of revenue in fiscal 2025. More importantly, Services carries a gross margin north of 75%, more than double the 36% Apple earns on hardware, according to Apple's fourth-quarter earnings release .
Now, Apple has made a bold play to increase that revenue by raising the prices on a number of its subscription services.
Like many Apple customers, I have a bundled Apple One Family subscription.
Every Apple One tier includes Apple Music, Apple TV, and Apple Arcade, plus iCloud+ storage. The tiers differ in storage amount, whether you can share with family, and, at the top, two extra services.
Apple One Individual runs $19.95/month and includes Apple TV, Apple Music, Apple Arcade, and 50GB of iCloud+ storage, for a single user.
Family is $25.95/month and includes the same services but bumps storage to 200GB and lets you share with up to five other people via Family Sharing.
Premier is the everything tier and adds the two services the lower plans don't have: Apple Fitness+ and Apple News+, on top of 2TB of iCloud+ storage, shareable with up to five other people. Source: Apple
Apple has raised the price of the Family and Premier Apple One tiers, while the Individual offering's price has not changed.
Apple did not announce the price change. Instead, it just changed the pricing on its website.
The company also quietly raised the cost of its Apple Music subscriptions:
"As a result of rising licensing costs, Apple Music is increasing its subscription price beginning today," the company shared in a statement to 9to5Mac .
Apple's move follows Spotify's own subscription price increases earlier this year, narrowing the pricing gap between the two streaming rivals. Even after the latest increases, Apple Music still costs less than Spotify's standard individual plan.
