At the end of October, Apple shared an update that it had 900 million paid subscribers with its Services revenue growing 5% YoY to $19.19 billion for its fiscal fourth quarter. To put that in perspective, that’s almost half of the $42.63 billion Apple generated from iPhone, its number one driver of sales. Over the last five years, Apple has been growing Services revenue tremendously.
But a new report from CIRP released today suggests that Apple could have a lot more opportunity to increase Services further. That is if it can convince a greater percentage of iPhone, iPad, and Mac owners to pick up or increase their paid subscriptions.
According to CIRP’s latest data, iCloud subscriptions are the most common for Apple customers with 60% of those surveyed saying they pay for extra storage.
Next is Apple Music with 36% of customers, followed by 28% saying they have both Apple TV and Apple Podcasts.
AppleCare for iPhone and iPad is in the single digits with 4 and 7% respectively. CIRP notes a lot of competition in the extended warranty space plus the challenge that almost 70% of iPhones are sold through a carrier or online.
