Apple jacks prices to juice profits because $19.3B a quarter isn't enough

Shareholders rejoice! Apple TV+, News+ raises prices over 40%

Subscription pricing has been on the rise for nearly every service imaginable, and Apple isn't about to miss the opportunity to squeeze its customers for a little more.

The iGiant Wednesday revealed it's jacking prices by as much as 42 percent its Apple TV+ streaming service, as well as Apple News+ and Apple Arcade.

In a statement provided to The Register, Apple said it'd begun rolling out new subscription pricing "in the US and select international markets."

We're told existing customers won't see the higher prices for at least another 30 days. Apple typically notifies customers by email of upcoming price increases, but this humble vulture has yet to receive such a notice.

"We are focused on delivering the best experiences possible for our customers by consistently adding high-quality entertainment, content, and innovative features for our services."

In the US, customers can expect to pay 40 percent more for Apple Arcade and 42 percent more for Apple TV+, bringing their prices to $6.99 and $9.99 per month, respectively. Meanwhile, Apple News+ subscribers will see their bills jump about 30 percent to $12.99 a month. Apple iCloud, Apple Music, and Apple Fitness appear to have been spared from the latest round of price increases, for now at least.

Those opting for Apple One aren't immune to the price hikes either. The plans bundle up many of Apple's more popular services, like iCloud+, Music, TV, and Arcade. Here's a breakdown of what US subscribers can expect:

  • Individual: $19.95/mo — up 17.7 percent from $16.95
  • Family: $25.95/mo — up 13 percent from $22.95
  • Premier: $37.95/mo — up 15 percent from $32.95

You can see how the price hikes will play out in your geographic region here.

No direct reason was given for the price jump, though it's can't be a weak profit line from Apple.

In August, executives boasted that services revenues reached an all-time high in Q3, with the company counting over a billion paid subscriptions. These subscribers accounted for roughly 25 percent of Apple's revenues during the last quarter, coming in at $21 billion. Last quarter Apple as a whole made $221 million a day in profit and paid an effective tax rate of 12.5 percent [PDF].

Apple is far from the first to jack up subscription prices. Netflix, Hulu, Disney+, Max, and Nvidia's GeForce Now are just a few of the subscription services that have announced higher monthly prices in 2023. ®

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