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.
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."