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With more than 2.5 billion active devices and over 1.5 billion paid subscriptions, Apple's services business has reached a record high. However, the pace has slowed since its peak in March, and the outlook is also downward. Two new features from the conference call are not being implemented in German-speaking countries.
In its fourth-quarter earnings call, Apple reported an all-time record of $31.57 billion in services revenue. CEO John Ternus and CFO Kevan Parekh both cited the active device base of more than 2.5 billion, as the call transcript shows.
Apple itself already mentioned the brand in January, but didn't provide a more precise figure this time. More revealing is what's happening in terms of growth.
Key Facts at a Glance
- The active device base exceeds 2.5 billion and reaches a record high in all major product categories and regions.
- The number of paid subscriptions is over 1.5 billion and, according to Apple, has grown by double digits.
- Services growth declined from 16.3 percent in the March quarter to 9.8 percent in the September quarter.
- Apple expects growth of only 8 to 9 percent for the December quarter.
- iCloud+ with Apple TV and advertising in Apple Maps do not affect the German-speaking region.
The decline has been downward since the high in March
Year-over-year, revenue continues to rise, but growth is not. It has been declining since the March quarter, and Apple's own outlook confirms this trend.
| Quarter | Services revenue | Previous year | Growth |
|---|---|---|---|
| December 2025 | 30.01 billion $ | 26.34 billion $ | +13,9 % |
| March 2026 | 30.98 billion $ | 26.65 billion $ | +16,3 % |
| June 2026 | 30.74 billion $ | 27.42 billion $ | +12,1 % |
| September 2026 | 31.57 billion $ | 28.75 billion $ | +9,8 % |
| December 2026 (Outlook) | – | 30.01 billion $ | +8 to +9 % |
The forecast, based on calculations, yields approximately $32.4 to $32.7 billion. Parekh cites negative impacts compared to the previous quarter, primarily due to third-party licensing and exchange rates, as the reasons for the lower growth. Exchange rates already reduced growth by more than 1.5 percentage points in the September quarter compared to the June quarter. In July, Parekh had also primarily attributed the decline from 16 to 12 percent to exchange rates, along with the strong year-on-year comparison driven by the film F1.
Where Apple reports records
Parekh cites all-time records for video, cloud services, payment services, and advertising, as well as a record for a September quarter in music. The App Store is missing from this list; Apple had explicitly mentioned it in the June quarter.
The gross margin for services was 76 percent, 0.4 percentage points higher than the previous quarter. For comparison, the margin for products was 37.2 percent, including approximately one percentage point from customs refunds. According to Parekh, the number of paid subscriptions grew by double digits. This figure counts subscriptions, not individuals, and also includes subscriptions to third-party apps.
Two innovations end at the border
Parekh highlights two additions in particular. iCloud+ now includes Apple TV and Apple Arcade in more than 100 countries and regions, but Germany, Austria, and Switzerland are not included.
According to Parekh, the advertising in Apple Maps is also running in the US and Canada. Users of Apple Maps in other countries will therefore not see it for the time being.
The foundation is the promise, not the pace
I still consider the 2.5 billion devices to be Apple's strongest argument, because every active device remains a potential customer for services. However, the number is meaningless as long as it's only presented as "more than" and has remained unchanged since January. The table is more informative, even though Apple says part of the slowdown is due to exchange rates and a strong previous year.
In Germany, Austria, and Switzerland, the strongest new bundle is missing. Those who want Apple TV and iCloud+ must continue to pay for them separately or subscribe to Apple One.
Would you change your service subscription if iCloud+ also included Apple TV and Apple Arcade in your country? Let us know in the comments which subscriptions you would cancel.
