iCloud Storage Remains Apple’s Most Popular Service

As Apple continues to seek to grow its Services segment, we follow it closely. With tens of billions of dollars of revenue each quarter, Apple Services delivers a needed counterbalance to stagnating hardware sales.

We look at penetration of various services into the US Apple customer base. An unexpected albeit low-priced service, paid iCloud storage, continues to capture the greatest share of Apple customers. 

We gather data on several services, including paid iCloud storage, AppleCare service contracts and extended warranties, Apple Music, TV+, and news and podcast services. Our customer survey questionnaires can’t quite capture activity in the App Store, another huge source of Services revenue.

Among Apple customers, paid iCloud storage is most common, with almost two-thirds of customers using it (Chart 1).