In Apple Q3 revenue report, the company’s subscribers reached 816 million, bringing the total number of new customers in 2022 to 30 million.
Once again, Apple proves that subscription models are the way to recurring profit. Although in its case, since it also controls the hardware, it is easy to ensure that buyers also use its subscription services.
The company’s main subscription revenue sources are iCloud, music, Apple TV+, and the App Store. They had 785 million subscribers in January 2022, which had just increased by 3.8% in 6 months.
The iPhone makers have not just been sitting idle, hoping subscribers would find their way to their services. In May 2022, the senior vice president of Services, Eddy Cue, tabled some strategies to grow its business in this regard, especially in streaming and advertising.
Apple’s suite of services made $19.8 billion in the second quarter of this year, which was a $2.8 billion markup from its 2021 earnings.
Soon, the company wants to start a ‘buy now, pay later’ service for potential customers to get products and pay for them when they can. Additionally, AppleInsider claims that Apple is working on a healthy-food-focused shopping service based on how people use Instacart to place grocery orders.
Besides showing the lucrative part of subscription model, Apple’s example also shows that it is easier to increase paying customers when they ‘must’ use the paid service. Otherwise, it would be another Twitter Blue case where users are okay with the free version.
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