Apple is nearing one billion paid subscriptions as Services keeps on rising

With $20.9 billion in Services revenue, Apple now has almost double the paid subscriptions across its platforms versus three years ago.

Aerial view of the main entrance to the Apple Park headquarters
Apple beat estimates thanks to strong iPhone sales | Image: Carles Rabada/Unsplash
  • Apple has confirmed having 975 million active subscriptions across its platforms.
  • This is nearly double the subscriptions Apple had three years ago.
  • In 2022 alone, Apple added over 150 million new subscriptions.

Apple now has 975 million active paid subscriptions

“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” CEO Tim Cook said in a press release published in the Apple Newsroom.

Apple’s services business in the March 2023 quarter:

  • 935 million active paid subscriptions vs. 900 million subscriptions in the fourth quarter of 2022, a 3.9 percent increase.
  • $20.9 billion in services revenue vs. $19.8 billion in the first quarter of 2023, a 5.6 percent increase.
  • Three years ago, in 2020, Apple’s services business was less than half of that.
  • The Services segment grew by 150 million in 2022.

Chart sowing Apple's Services revenue
Apple’s Services revenue keeps rising | Image: SixColors

Tim Cook views Apple’s Services segment as “underpenetrated” in many areas. The Cupertino company also shared that it had more than 2 billion active devices, the same number reported In February.

Apple’s sprawling services business

Apple’s services business has many tentacles, including iCloud, AppleCare, Apple Music, Apple TV+, Apple Arcade, and the App Store and other products. Every subscription is counted separately. For example, if you have iCloud+, Apple TV+ and Apple Music, Apple counts this as three separate subscriptions.

Chart sowing year-over-year changes to Apple's Services revenue
Year-over-year change in Services revenue | Image: SixColors

Apple reported 94.3 billion in revenue for the quarter ending in March 2023 vs. the $97.2 billion revenue in the year-ago quarter. Net profit was $24.16 billion, and an EPS was $1.52, the same as in the year-ago quarter. For the third year, Apple hasn’t provided financial guidance for the next quarter.

Apple’s Services segment is expected to continue expanding as the company may introduce new services. In May of last year, it was reported that Apple’x services boss Eddy Cue was shifting the company’s Services team to focus more on advertising and streaming.