As iPhone sales experience a slowdown, Apple’s services are playing an increasingly crucial role in driving the company’s revenue growth. A new report from CIRP sheds light on the popularity of Apple’s various services among its customers.
While Apple reported surpassing 1 billion paid subscriptions and over 2 billion active customer devices in 2023, the specific breakdown of those subscriptions has remained unclear. CIRP’s latest analysis provides insights into how demand for Apple’s services has evolved.
In 2024, paid iCloud upgrades emerged as the most sought-after service, with 64% of Apple users opting for them. This marks a notable increase from 60% in 2022.
Apple Music secured the second position, boasting a subscription rate of 42% among Apple users, up from 36% in 2022.
Apple Podcast, AppleCare, and Apple TV+ followed closely with adoption rates of 37%, 35%, and 32%, respectively.
In its fiscal Q3 performance, Apple reported a remarkable $24.21 billion in services revenue, signifying a 14% year-over-year growth.
The popularity of paid iCloud upgrades can be attributed to Apple’s decision to maintain the free iCloud storage tier at 5 GB, even as iPhones and iPads have become more powerful. This necessitates users to upgrade to a paid account for storing backups and other data.
