Apple's Services Revenue Up 24% on App Store, Apple Pay, and Apple Music Growth

Apple-Pay-250x434 (1) copyDuring today's fourth quarter earnings call, Apple CEO Tim Cook highlighted the significant growth Apple saw in its services category, which is up 24 percent year over year.

In the quarter, Apple's services segment, which consists of the App Store, iTunes, Apple Music, Apple Pay, AppleCare, and more, brought in $6.3 billion, up from $5 billion in the year-ago quarter.

According to Cook, services growth is driven by continued increases in App Store revenue and the increasing popularity of Apple Music. Revenue from Apple Music was up 22 percent in Q4 2016 compared to Q4 2015, while the App Store saw its fifth consecutive quarter of growth.

Apple Pay is also seeing steady growth. Apple Pay transactions are up over 500 percent, and in September of 2016, Apple saw more Apple Pay transactions than across all of fiscal 2015.

All in all, Apple has nearly doubled services revenue in the last four years and expects the services category to reach the size of a Fortune 100 company in 2017.

Related Roundup: Apple Pay

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Top Rated Comments

groovyd Avatar
101 months ago
Doooomed
Score: 4 Votes (Like | Disagree)
twinlight Avatar
101 months ago
Would be higher if they had teamed up with Visa or Mastercard directly. This slow rollout and resistence from banks is holding it back.
Score: 1 Votes (Like | Disagree)
Max Portakabin Avatar
101 months ago
Deserved growth: Apple Pay and the efficiencies offered during transactions

Not deserved: 20% hidden price increases across the board in iTMS and App Store.

On the fence: Apple Music - maybe offer up another trial for those who got burned at the car crash of the initial roll out.
Score: 1 Votes (Like | Disagree)