Apple has introduced a new storage tier foriCloud that grants 2TB of space for a monthly payment of $19.99. This pricing is similar to that of Google Drive’s terabyte pricing starting at $9.99 a month for 1TB, but it is slightly higher than Microsoft’s pricing of $6.99 a month for 1TB, notes The Verge.

Apple

Apple keeps the previous plans intact

Apple expanded its iCloud storage options on Tuesday. This new tier is part of an update to its iCloud storage support webpage. The upgrade went live in all of North America and the EMEA and Asia Pacific regions where iCloud is already available.

The introduction of the new plan doesn’t mean that Apple is scrapping the previous one. Customers will still be able to opt for 50GB, 200GB or 1TB for monthly charges of 99 cents, $2.99 or $9.99 respectively. The company is also offering a default amount of 5GB for free to Mac and iOS users, who don’t pay for the iCloud.

It has been almost a year since Apple last updated its iCloud pricing, nixing the 500GB option and scaling back monthly pricing for its top two tiers. Before September 2015, the subscription price of the 200GB plan was $3.99 per month, while for the 1TB package, it was $19.99 per month.

New storage tier for iPhone 7?

Apple is building out a growing online services business, and iCloud storage forms a small part of it. The segment includes Apple Music, Apple Care, iTunes, iCloud, Apple Pay and the various App Stores.

On the most recent quarterly earnings conference call, CEO Tim Cook said that by 2017, he expects the services division to generate revenue equivalent to that of a Fortune 500 company. In the June quarter, the segment generated $46 billion in revenue — up 19% year over year.

The timing of the change indicates that the company might introduce new storage for the upcoming iPhone 7. On September 7, Apple will likely announce the iPhone 7. It has been seen that the largest iCloud storage tier has always been eight times that of the largest capacity iPhone; therefore, we might see a new 256GB iPhone 7 Plus, notes 9to5 Mac.

A 256GB model of the iPad Pro is already on sale, but since cloud storage is so cheap, one might not need an iPhone that big.

On Tuesday, Apple shares closed down 0.77% at $106. Year to date, the stock is down more than 1%, while in the last year, it is down more than 6%.