Apple reported a strong 2025, with its services division achieving record results across key platforms. The company, led by senior vice president Eddy Cue, announced significant growth in its App Store user base, Apple Pay transaction volume, and Apple TV engagement. These gains come as Apple faces increased regulatory scrutiny over its App Store practices and as competitors like Spotify navigate their own challenges.
The data reveals 850 million average weekly App Store users, a rise from 813 million in 2024. Apple Pay processed over $100 billion in merchant sales, and monthly engagement on Apple TV increased by 36%. Apple also highlighted substantial growth in its Apple Music subscriber base, a notable achievement given Spotify’s established market leadership.
Apple’s App Store Continues to Drive Revenue
A key indicator of Apple’s services strength is the payout to developers. The company now reports having distributed $550 billion to developers since the App Store’s launch in 2008. This figure represents considerable acceleration, as payouts reached $260 billion in 2021 and $200 billion in 2020. The App Store’s commission structure, typically 30% on in-app purchases (reduced to 15% for small businesses earning under $1 million annually), remains a point of contention.
International regulatory bodies are actively investigating Apple’s App Store policies, alleging monopolistic practices. These investigations center on whether Apple unfairly advantages its own services and restricts competition. The outcome of these probes could significantly alter the App Store’s operational model and impact developer revenue.
Apple Music and Apple TV are Growing
Apple’s entertainment offerings are demonstrating positive momentum. Apple TV experienced record viewership in December 2025, fueled by popular original content like “Pluribus,” “The Studio,” and the continued success of “Severance.” Strategic streaming deals with Major League Soccer and Formula 1 have also contributed to this growth.
Content and Partnerships Boost Apple TV+
The Formula 1 docuseries and film, “F1,” became Apple Studios’ highest-grossing film to date, and a career high for star Brad Pitt. This success underscores the impact of high-profile content partnerships on attracting and retaining subscribers. Apple is increasingly investing in original programming to differentiate its streaming service from competitors.
Meanwhile, Apple Music’s growth may be linked to several factors. The “Sing” karaoke feature has proven popular, and partnerships with financial institutions like Chase and automotive companies like GM are expanding the service’s reach. Shazam, with over 1 billion monthly recognitions, continues to drive user engagement and potentially funnel listeners to Apple Music.
However, some analysts suggest Apple Music is benefiting from controversies surrounding Spotify. Recent criticism of Spotify CEO Daniel Ek’s investment in Helsing, a European defense tech company specializing in AI-powered military software, prompted several artists to remove their music from the platform in protest.
This situation follows previous controversies involving Spotify, including concerns over the spread of COVID-19 misinformation through the Joe Rogan podcast and ongoing debates about artist royalty rates. Some users have also cited algorithmic frustrations as a reason to switch from Spotify to Apple Music, preferring Apple’s curation approach.
Additionally, Apple’s promotional offers, such as a three-month free trial with the purchase of a new device, are likely attracting new subscribers to Apple Music. This strategy leverages the company’s hardware ecosystem to drive adoption of its services. The broader services market is highly competitive, with companies vying for user attention and subscription revenue.
Looking ahead, Apple’s continued success in its services division will depend on its ability to navigate regulatory challenges, maintain a compelling content offering, and effectively compete with established players like Spotify and Netflix. Further details regarding App Store payouts and the impact of regulatory decisions are expected in Apple’s next quarterly earnings report, scheduled for release in late 2026. The evolving landscape of digital content and distribution will remain a key area to watch for both Apple and its competitors.
