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Apple’s Services Engine Hits 1.5 Billion Subscribers, But Revenue Growth Faces New Pressure

Apple’s services business surpassed 1.5 billion paid subscriptions during the June quarter, up from 1 billion in January 2025, as the company continued to expand its ecosystem despite revenue coming in below Wall Street expectations.

Services revenue reached $30.74 billion, missing analysts’ estimate of $31.22 billion. The shortfall, together with weaker-than-expected performance in China, sent Apple shares down more than 4% in after-hours trading.

App Store Growth Slows

Chief Financial Officer Kevan Parekh said several factors weighed on services revenue, including slower mobile gaming activity and changes to the App Store business model in some markets.

In the United States, court-ordered changes now allow developers to process payments outside the App Store, reducing Apple’s ability to collect commissions on some transactions. The legal dispute remains ongoing and is expected to reach the U.S. Supreme Court.

Parekh did not quantify the financial impact of those changes.

Foreign Exchange Also Weighed On Results

According to Apple, foreign exchange was the largest factor behind the services revenue miss. Results were also affected by a difficult comparison with the prior year, when the theatrical release of F1 boosted performance.

Despite the weaker-than-expected revenue, the App Store recorded a June quarter revenue record. That figure includes Apple Ads, which recently expanded to Apple Maps.

Paid Subscriptions Continue To Grow

Apple said services revenue reached an all-time high across developed markets and a June quarter record in emerging markets. Double-digit growth was recorded in the vast majority of markets where the company operates.

“Our services continue to attract more customers, and we have now surpassed one and a half billion in paid subscriptions,” Parekh said. “Both transacting and paid accounts reached new all-time highs in the quarter, with double-digit growth for both in emerging markets.”

Multiple Services Posted Record Results

Apple said Apple Ads, the App Store, AppleCare, Apple Music and Apple TV each recorded June quarter revenue records. Cloud services and payment services reached all-time highs, while Apple TV reported record viewership during the quarter.

Apple Expands Services Offering

The company also highlighted newer products, including Creator Studio subscriptions and planned bill-splitting features for Apple Cash, as part of its expanding services portfolio.

Apple’s Upgrade program, launched with Klarna, is designed to simplify device purchases and could encourage more customers to adopt Apple products and services.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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