Apple raised the monthly price of Apple TV to $14.99 from $12.99 and lifted the individual Apple One bundle to $21.95 from $19.95 in the U.S. The increase follows a July hike to Apple Music and arrives as Apple's services segment posts double-digit revenue growth.
Apple TV and Apple One get more expensive
Apple Inc. (NASDAQ: AAPL) raised the price of Apple TV in the U.S. to $14.99 a month from $12.99, CNBC reported. The company also increased the individual Apple One bundle to $21.95 a month from $19.95.
Apple TV launched in 2019 at $4.99 a month and has since added content, including the film "F1" and a fourth season of "Ted Lasso." The increase follows a $1-a-month rise to Apple Music in July, which Apple attributed to licensing costs.
Services revenue keeps climbing
Apple reported $30.7 billion in services revenue for its fiscal third quarter, up 12% year over year. The segment's gross margin, however, fell more than a percentage point sequentially, which the company blamed on product mix and foreign-exchange headwinds.
The price increases across Apple TV, Apple Music, and Apple One bundles flow directly into that recurring revenue line. But Apple does not disclose standalone Apple TV subscriber numbers, so investors have limited visibility into how much churn earlier price increases have caused.
Source: Insider Monkey
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