During today's third quarter earnings call, Apple announced its second consecutive year-over-year revenue drop, but amid the decline, the company's services category saw significant growth based on strong App Store performance.

Services revenue was up 19 percent year over year, and according to Apple CEO Tim Cook, Apple saw its highest App Store revenue ever, setting a new all time high. Compared to the year-ago quarter, App Store growth was up an impressive 27 percent, with iCloud, AppleCare, and Apple Music also seeing notable growth.

App-Store-About-800x369
Over the course of the last 12 months, Apple's services revenue is up $23.1 billion, and next year, the company expects revenue from services to "be the size of a Fortune 100 company."

Growth was fueled by Apple's active install base, which brought in $10.3 billion dollars during the quarter, marking 29 percent growth year-over-year. Apple CFO Luca Maestri said the company set a new record for customers making purchases through the iTunes and App Store, and the average amount spent per customer was the highest Apple has ever measured.

App Store revenue has climbed consistently over the last four consecutive quarters and Cook said he expects the services category to continue to grow "very briskly."

Top Rated Comments

djcerla Avatar
94 months ago
So much for the Walt Mossberg doom and gloom about apps.
Score: 2 Votes (Like | Disagree)
jonblatho Avatar
94 months ago
Thought iPad revenue was up?
They’re taking in more money off fewer iPads sold. Also, the percentage of total revenue generated by iPads grew by 33% year-over-year, which would be more impressive if iPhone sales didn’t fall to help make it happen.
Score: 2 Votes (Like | Disagree)
CarpalMac Avatar
94 months ago
Services are of course the future of Apple. Apple Music, Apple Pay, Apple Car (sharing, etc.) and the good old App Store.
It's a steady income stream that requires little effort & cost, especially when compared to the R&D that goes into hardware & software development.

Thing is though, if people stop buying the hardware, the stream can and will eventually dry up.



Score: 1 Votes (Like | Disagree)
Shirasaki Avatar
94 months ago
Seems that Apple Music helps Apple to gain a good revenue.
I still don't want to use it though.
Score: 1 Votes (Like | Disagree)
jclo Avatar
94 months ago
What he means is this article (only this) says iPad revenue is drop.
Post says overall revenue has dropped, not iPad revenue. It does say iPad sales have dropped, which is true. It's obviously not clear enough so I'll rewrite that bit.
Score: 1 Votes (Like | Disagree)
6836838 Avatar
94 months ago
Oh dear. That's horrible on back of Apple Music.
Score: 1 Votes (Like | Disagree)

Popular Stories

BMW Logo iPhone 15 Pro

Warning: BMW Wireless Charging May Break iPhone 15's Apple Pay Chip

Sunday October 1, 2023 6:14 am PDT by
If you have an iPhone 15 and drive a BMW, it might be best to avoid charging the device with the vehicle's wireless charging pad for now. Over the past week, some BMW owners have complained that their iPhone 15's NFC chip no longer works after charging the device with their vehicle's wireless charging pad, according to comments shared on the MacRumors Forums and X, formerly known as Twitter. ...
Multi Display CarPlay 1

All-New Apple CarPlay Launching Later This Year With These 5 New Features

Friday September 29, 2023 11:29 am PDT by
At WWDC 2022 last year, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, personalization options, and more. Apple said the first vehicles with support for the next-generation CarPlay experience would be announced in late 2023, but it has still not shared any additional...
Apple Watch Edition Gold 2015

Original Apple Watch is Now Obsolete, Including $17,000 Gold Model

Monday October 2, 2023 9:15 am PDT by
All first-generation Apple Watch models released in 2015 were added to Apple's obsolete products list on September 30, according to an internal memo obtained by MacRumors. As a result, these outdated "Series 0" watches are no longer eligible for repairs or other service at Apple Stores and Apple Authorized Service Provider locations. The list of obsolete models includes the first-generation...
iPhone 15 Pro lineup

Apple to Address iPhone 15 Pro Overheating Issue With iOS 17 Update

Saturday September 30, 2023 9:28 am PDT by
Apple plans to release an iOS 17 update to address a bug that may contribute to the reported iPhone 15 Pro and iPhone 15 Pro Max overheating issue, according to a statement the company shared today with MacRumors and Forbes reporter David Phelan. Apple also says some recent updates to third-party apps have overloaded the system and contributed to the overheating issue. The report notes that...
Apple Logo Spotlight

Mac Trade-In Changes May Indicate New Model to Launch This Month

Tuesday October 3, 2023 6:30 am PDT by
Apple may be proceeding with plans to release a new Mac model this month, according to potentially related information obtained by MacRumors. Details pertaining to imminent changes to Mac trade-ins provided to MacRumors by a verified source suggest that Apple will likely begin accepting new models for trade-in this month. Similar changes in June coincided with WWDC, when Apple began accepting...
iphone se 4 modified flag edges

iPhone SE 4 Details: Action Button, USB-C Port, Face ID, and More

Wednesday September 27, 2023 1:34 pm PDT by
Significant changes are expected to arrive with Apple's fourth-generation iPhone SE, in terms of both design and hardware, MacRumors has learned. The iPhone SE 4, known internally under the codename Ghost, is expected to receive a new design derived almost entirely from the base model iPhone 14. According to our sources, the iPhone SE 4 will use a modified version of the iPhone 14 chassis...