Here Are Apple’s Most (and Least) Popular Subscription Services
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Consumer Intelligence Research Partners (CIRP) has released a report about Apple’s most beloved subscription services over the past year in the US. While most of the findings aren’t earth-shattering, we were shocked to learn some common habits of Apple buyers.
The report dove into the following Apple subscription services: Apple Music, AppleCare for iPhone, AppleCare for iPad, iCloud, Apple TV, Apple Podcasts, and Apple News. The results could surprise you.
iCloud
Apple has virtually zero competition when it comes to iCloud. It’s synced across all devices and is nearly every Apple user’s go-to alternative as a backup or when their device is out of storage.
The nominal monthly cost of iCloud is more easily digested by consumers than paying upfront for additional on-device storage. For example, the cost difference between an iPhone 15 with 128GB of storage vs 512GB is $300. A 200GB iCloud storage plan is $2.99/month in the United States.
Apple Care for the iPhone and iPad
We recently wrote about the potential major cost savings of AppleCare+ for iPhone owners. We were baffled to learn only 17% of new iPhone owners over the past year elected to insure their new iPhone purchase with AppleCare+.
Sure, AppleCare+ is $9.99/month for the iPhone 15 Pro and Pro Max, but a screen repair without coverage is $379. We’re not trying to scare you into AppleCare+, but the numbers speak for themselves. Whether or not your cellular provider offers similar insurance, you’re more than likely stuck with a monthly payment either way. Has the iPhone’s durability reached such a level that people don’t need insurance?
Another unexpected stat from the report is the number of iPad purchasers that opted for AppleCare+. 35% of new iPad purchasers in the last year protected their investment with AppleCare+. We tend to think that iPhones are more susceptible to damage and are usually a greater investment than iPads. Even if iPad owners use them for business and travel, larger devices are typically less prone to drops and damage. Maybe pricing is the ultimate determining factor. AppleCare+ for the M4 iPad Pro 13 inch is $8.49/month for a device that starts at $1,199.
Apple Music, Apple Podcasts, Apple TV and Apple News
As for the remaining Apple media services, Apple Music leads the way, with 42% of Apple customers using the service, while 32% use Apple TV+. This makes sense, given that consumers typically subscribe to one music service but multiple video streaming platforms like Netflix or Hulu. Just over one-third of Apple owners use Apple Podcasts, and just over a quarter use Apple News.
There’s no doubt Apple’s insurance programs and media subscription services are a meaningful part of Apple’s revenue. We’ll continue to follow these reports and share the findings. It’s easy to understand the impacts of major topics like sideloading in the EU and “right to repair” legislation on Apple’s bottom line. It will be fascinating to follow how Apple fights to maintain loyalty to its subscription services as the landscape changes.
