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Apple TV Viewership Hit All-Time High In June Quarter; Tough Comps With ‘F1: The Movie’ Slow Growth In Services
Apple TV recorded its highest-ever viewership in Apple’s June quarter, but the company’s Services growth slowed as it faced difficult comparisons with the previous year’s release of *F1: The Movie*. The result matters because Services remains a major growth business for Apple, yet its $30.7 billion quarterly revenue fell short of analyst expectations and Apple signalled further moderation ahead.
Services revenue rose 12% year on year to a record $30.7 billion, with more than 1.5 billion paid subscriptions across Apple’s services. Apple attributed some weakness to foreign exchange, lower mobile-gaming revenue and App Store business-model changes, while noting that the 2025 *F1* release grossed $634 million worldwide and boosted the prior-year comparison; Apple TV also received a record 89 Emmy nominations.
In short
- Apple TV viewership reached a record high.
- Services revenue rose 12% to $30.7 billion.
- *F1* comparisons and App Store pressures slowed growth.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The record viewership and more than 1.5 billion paid subscriptions suggest Apple’s Services business remains broadly attractive, even as quarterly revenue growth moderates. Apple can reasonably argue that foreign exchange, App Store changes and comparison with the unusually successful F1 release affected this quarter, so a shortfall against forecasts need not signal a lasting deterioration.
The case against
Services is a major growth business, and record viewership did not prevent revenue from missing analyst expectations or growth from slowing. Investors can reasonably question whether Apple’s explanations fully account for the gap and whether weaker gaming revenue and App Store changes point to pressure that will persist beyond the difficult comparison.
Explained simply
Apple Services comprises the company's subscription businesses, including Apple TV+, Apple Music, iCloud, and the App Store. This division has become increasingly vital to Apple's growth strategy, as it generates recurring revenue that is more stable than hardware sales.
Apple's Services business has grown rapidly in recent years, with the company reporting consistent double-digit increases in revenue and subscriber numbers. Analysts closely watch this growth rate because Services is now a major profit driver for Apple, and any slowdown could signal broader challenges in the company's long-term expansion plans.
Last year, Apple released *F1: The Movie*, a major film that attracted viewers to its Apple TV+ service and boosted subscriber numbers. When comparing this year's results to last year's, the company faces a higher bar because of the boost the film provided.
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