<div id="readability-page-1"><div><div>Tech giant Apple Inc AAPL recently announced a price increase for its streaming customers, taking its AppleTV+ subscriptions from $9.99 per month to $12.99 per month, its first price increase since 2023.Deepwater Asset Management Managing Partner Gene Munster breaks down what the price increase could mean.<h2>Gene Munster On Apple's Price Increase</h2>The price increase for Apple's streaming segment represents a &#34;small example of a big opportunity&#34; for the tech giant, Apple bull Munster wrote in a recent blog post.Munster says that Apple is looking to increase its revenue per device through items like subscriptions and price increases for services and hardware.&#34;I believe investors will increasingly focus on that metric as a barometer for the health of the business,&#34; Munster said.He noted that the price increase for AppleTV+ could add $430 million in &#34;high margin revenue,&#34; or a rise of 0.1% of next year's expected revenue.Apple doesn't break out its monthly subscribers. Munster estimates 60 million paid subscribers, with 65% receiving a discount. Munster's estimate is an average monthly cost of $6.50 per month per subscriber.&#34;Apple users get a ton of value from their devices on a daily basis. Inching up average revenue per device per day will be two-thirds led by services and one-third led by hardware price increases,&#34; he noted.He compared the price change and new focus to the chapters that Apple has gone through as a company over the past 20 years.&#34;The first was the move to a mobile device company. The second chapter was higher margins through services. The third could be inching up average revenue per user.&#34;Munster said the new focus comes as Apple users continue to get a lot of value from their devices, and the company has an opportunity to introduce new services and raise the prices of existing ones.&#34;Over the next five years, I believe this will be Apple's growth playbook, getting more aggressive on pricing because when consumers break it down, they are only paying pennies a day to have their lives run on Apple.&#34;Read Also: F1 Is Apple’s Biggest Box-Office Win—So Why Is The Stock Stalling?<h2>Apple Streaming: Big On Awards, Ecosystem, Lower on Profits</h2>Apple, which reported losses $1 billion annually on AppleTV+, has gone all in on big-budget movies for theaters and to stream on the platform. While this has translated into award nominations and wins, the platform has yet to turn a profit.&#34;The basic strategy of Apple TV+ business is to invest lots of money and win lots of awards. So far that is exactly what they are doing. I expect the losses to end in a few years,&#34; Munster said.He noted that Apple could be looking to reduce losses through the price increase and lowering content costs in the future.&#34;I believe Apple's intent is to gradually close the gap between Apple TV+ expenses and revenue, turning what has been a negative-margin venture into a profitable one over time.&#34; The price increase from Apple comes as the streaming platform has added sports rights like Major League Soccer as part of a 10-year exclusive deal and Major League Baseball Friday Night games through 2028.Apple earned 81 Emmy Award nominations in July, including 27 for hit series &#34;Severance&#34; and 23 for &#34;The Studio.&#34; The platform is also nearing a return of &#34;Ted Lasso,&#34; one of its top series of all time.The price increase also came ahead of the streaming premiere of &#34;F1,&#34; the record-breaking film from Apple. The film, which will likely hit the streaming platform in late September or October, grossed $185.9 million domestically and $603.4 million worldwide.&#34;F1&#34; is the highest-grossing Apple film ever, ranking 11th domestically and seventh in the world for 2025 box office gross currently.Apple's price increase also comes ahead of a rumored ad-free plan. Adding an ad-supported plan after hiking prices by 30% could prompt subscribers to switch to the lower-priced plan, potentially benefiting Apple more if advertising rates are high.<h2>AAPL Price Action </h2>Apple stock traded at $227.71 on Monday, within a 52-week trading range of $169.21 to $260.04. Apple stock is down 6.6% year-to-date in 2025.<ul> <li>Apple Has ‘At Least Two Years’ Before Losing Customers Despite Its Several AI Missteps, Says Gene Munster — Here’s Why</li> </ul>Photo: Shutterstock</div></div></div>

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Apple Inc. has raised its AppleTV+ subscription price from $9.99 to $12.99, marking its first increase since 2023. Gene Munster of Deepwater Asset Management views this as a strategic move to boost revenue per device through subscriptions and price hikes. He estimates the increase could generate an additional $430 million in high-margin revenue. Munster believes this pricing strategy will be key to Apple's growth, as the company aims to close the gap between expenses and revenue for AppleTV+, which has reported annual losses of $1 billion. The price hike coincides with new sports rights acquisitions and upcoming major releases.

- Apple Inc. has increased its AppleTV+ subscription price from $9.99 to $12.99 per month, marking its first price hike since 2023.  
- Gene Munster of Deepwater Asset Management suggests this move could generate an additional $430 million in high-margin revenue, reflecting Apple's strategy to enhance revenue per device through service pricing.  
- The price increase coincides with Apple's efforts to reduce losses from AppleTV+, which has yet to turn a profit despite significant investment in content and award nominations.

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Apple Earnings In Focus After Streaming Price Increase: Gene Munster Says This 'Will Be Apple's Growth Playbook'