Apple has made two strategic announcements that reveal the company’s ambitious plans to expand its entertainment reach while securing its technological foundation for decades to come. The tech giant has locked in exclusive U.S. streaming rights for Formula 1 through a massive $750 million deal and extended its critical chip design partnership with Arm well beyond 2040. These moves demonstrate Apple’s calculated approach to dominating premium content while maintaining its competitive edge in custom silicon development.
Racing Ahead with Formula 1
Apple’s landmark five-year, $750 million agreement represents the largest sports streaming deal in the company’s history, positioning Apple TV+ as Formula 1’s exclusive U.S. home starting in 2026. The deal marks a seismic shift from ESPN’s current broadcasting arrangement, which concludes at the end of 2025. Beginning with the 2026 season, Apple TV+ will stream all Formula 1 content, including practice sessions, qualifying rounds, and Grand Prix races.
The acquisition signals Apple’s serious intent to challenge established sports broadcasters like ESPN and Amazon Prime Video. Beyond simply streaming races, Apple plans to leverage its entire ecosystem—integrating Formula 1 content across Apple News, Apple Music, and other services—to create an immersive fan experience that extends far beyond race weekends.
“2026 marks a transformative new era for Formula 1, from new teams to new regulations and cars with the best drivers in the world, and we look forward to delivering premium and innovative fan-first coverage to our customers in a way that only Apple can,” said Eddy Cue, Apple’s senior vice president of Services.
Securing the Future with Arm
Simultaneously, Apple has reinforced its foundational technology partnership by extending its Arm licensing agreement through at least 2040—a deal that ensures continued access to the chip architecture powering every iPhone, iPad, and Mac. This long-term commitment comes at a crucial time, as Arm prepares for its highly anticipated initial public offering and seeks to secure relationships with key partners.
The extended partnership is strategically vital for Apple’s hardware ambitions. Arm’s instruction set architecture forms the backbone of Apple’s custom silicon processors, from the A-series chips in iPhones to the M-series processors that revolutionized Mac performance. By locking in access to Arm’s technology roadmap for two decades, Apple protects its ability to continue developing industry-leading processors that differentiate its devices from competitors.
Apple’s participation in Arm’s IPO alongside tech giants Google and Nvidia further underscores the strategic importance of maintaining influence over Arm’s future direction and ensuring the chip designer remains independent from potential competitors.
Key Takeaways
- Apple’s $750 million Formula 1 deal represents its largest sports streaming investment, positioning the company to compete directly with ESPN and Amazon in premium sports content.
- The extended Arm partnership through 2040 secures Apple’s custom silicon roadmap and protects against potential supply chain disruptions or competitor acquisitions.
- Both deals reflect Apple’s dual strategy of expanding its services revenue while fortifying the technological foundations that enable hardware differentiation.
Conclusion
These parallel investments reveal Apple’s sophisticated approach to long-term growth: securing premium content that drives services revenue while protecting the custom silicon capabilities that differentiate its hardware. The Formula 1 deal positions Apple TV+ as a serious competitor in sports streaming, potentially attracting millions of new subscribers globally. Meanwhile, the extended Arm partnership ensures Apple can continue pushing the boundaries of mobile and desktop processor performance without depending on competitors’ chip designs.
As both initiatives take effect, they will likely accelerate Apple’s transformation from a hardware-centric company to a more balanced technology and media conglomerate, reinforcing its position as an industry leader across multiple fronts.
