Apple Inc (NASDAQ:AAPL) won the bidding war for the U.S. rights for Formula 1 (NASDAQ:FWONA)(NASDAQ:FWONK) races beginning with the 2026 season. With one race aired on Apple’s streaming platform, the company is already setting records.
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Apple Exceeds Expectations With Formula 1
Formula 1 kicked off the 2026 season with a new American team (Cadillac F1) and could be riding high after the massive success of “F1: The Movie,” which starred Brad Pitt, in 2025.
Those items may have contributed to strong U.S. viewership for the season’s inaugural Australian Grand Prix.
Apple reported it had more viewers for the 2026 race than Walt Disney Co (NYSE:DIS) had on its ESPN network for the same race in 2025, according to The Hollywood Reporter.
Last year’s race had 1.1 million viewers for ESPN and set a new race record among U.S. viewers. Apple did not break out a figure for this year’s race, but said viewership was up year-over-year.
“The 2026 Formula 1 season on Apple TV is off to a strong start, with fans responding positively and viewership up year over year for the first weekend, exceeding both F1 and Apple expectations,” Apple Senior Vice President of Services Eddy Cue told The Hollywood Reporter.
Cue said Apple launched its U.S. rights with “enhanced viewing experiences,” including 4K with Dolby Vision for the first time.
While it’s only one race, this could be a good sign for Apple after the record-breaking season Formula 1 set in 2025. ESPN previously reported it averaged a record 1.3 million viewers for its 24 Formula 1 races in 2025. The company said it set new race viewership records for 16 of the 24 races and that 21 of the 24 races had year-over-year viewership increases.
Items that could contribute to a strong 2026 viewership include another American team, the success of the “F1: The Movie,” which grossed $633.4 million worldwide and a more competitive field.
Max Verstappen won four straight Formula 1 championships, but was bested by Lando Norris last season, with the championship decided in the last race. During Verstappen’s dominant streak, the championship was decided four or five races before the final in two of the four seasons.
Formula 1 Impact on Apple’s Financials & Stock
AppleTV, the company’s streaming platform, has posted operating losses each year. Apple is working on improving the financials and its push for live sports could be one of the keys to turning the unit profitable.
Subscribers pay $12.99 per month for the streaming service, up from $9.99 before August 2025. Formula 1 races are included for free in the membership, alongside live sports from Major League Soccer and Major League Baseball.
“The AUS GP [Australian Grand Prix] also coincided with the biggest week ever for the Apple Sports app since its launch,” Cue said. “We’re just getting started and are incredibly excited about what lies ahead.”
One of the big questions will be whether Apple is gaining subscribers who want to watch Formula 1 or if its existing subscribers are tuning into Formula 1 races. The truth is, it is likely a combination of both.
Deepwater Asset Management Managing Partner Gene Munster previously highlighted Apple’s streaming price increase as a “small example of a big opportunity” for the tech giant.
Munster said Apple is looking to increase its revenue per device through items such as subscriptions and price increases for services and hardware.
He noted the price increase for AppleTV could add $430 million in “high margin revenue,” 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.
“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.”
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.
Apple Stock Price Action
Apple shares trade at $252.56 on Friday versus a 52-week trading range of $169.21 to $288.61. Apple stock is down 7.17% year-to-date in 2026 and shares remain up 20.36% over the last 52 weeks.
Photo Courtesy: Michael Potts F1 on Shutterstock.com
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