Apple's Most Important Catalyst Just Got Better
While Apple's (NASDAQ: AAPL) iPhone sales are often the most closely watched item when the company reports earnings, it's the tech giant's steadily growing services business that's arguably most important to its future. Not only is the large segment growing rapidly, but it is a more predictable revenue stream than the company's product revenue. Further, the lucrative segment represents an outsized portion of Apple's gross profit.
Apple's services segment has become more important over time, growing as a percentage of revenue. While the segment benefits from a number of growth drivers, one, in particular, was highlighted this week: Apple's ability to increase prices. The tech company rolled out several price increases on its native services on Monday, flexing the segment's pricing power.
Apple increased its prices on Apple TV+, Apple Music, and its Apple One subscription bundle. The streaming TV service, Apple TV+, saw its monthly price increase by 40% to $6.99. The company's Spotify-like streaming music service now has a monthly price of $10.99, up from $9.99. Finally, Apple's entry-level subscription bundle, which includes the company's streaming TV, music, and cloud storage, saw its monthly price rise from $14.95 to $16.95.
Source Fool.com
