newappstorelogoApple's services category, which includes the App Store, iTunes Store, Apple Music, Apple Pay, AppleCare, iCloud, licensing, and other services, set an all-time quarterly record revenue in the fourth fiscal quarter of 2017.

During the quarter, the services category brought in $8.5 billion, up from $6.3 billion in the year-ago quarter for an impressive 34 percent growth.

Apple's services category is the size of a Fortune 100 company, a milestone Apple hit earlier this year. Apple often attributes much of the growth of its services category to the App Store, and that continues to be the case this quarter.

iOS 11 brought an entirely new App Store experience that splits Games and Apps into separate tabs and introduces a new "Today" section that allows Apple to better highlight the wide variety of apps that are available in the App Store, offering up a range of editorial picks to improve app discovery. Apple says the new design has increased customer visits, the number of apps downloaded, and the amount of time customers spend in the store.

The iOS 11 update also introduced ARKit, making the iPhone and the iPad the largest augmented reality platform in the world. There are already more than 1,000 ARKit apps available for download from the App Store.

Apple Music revenue also "grew strongly" during the quarter, with 75% growth in subscribers year-over-year, and iCloud also saw "double-digit growth" when it comes to monthly average users and revenue. Apple has 210 million paid subscriptions across all its services category, up 25 million in 4Q 2017 alone.

Apple is aiming to double its 2016 services revenue by 2020, and Apple CEO Tim Cook this afternoon said the company is well on its way to hitting that goal.

Related Forum: Mac Apps

Top Rated Comments

kylew1212 Avatar
87 months ago
What are those services supporting, ya think?
I don’t see many people signing up for iCloud storage if they don’t own an iPhone to back up to it from.
[doublepost=1509659411][/doublepost]Guess this means they won’t be dropping the price of iCloud storage anytime soon. Maybe after they finish that data center. One can hope.
iCloud pricing is not that bad, compared to other services.. But it's nice when they drop the price.
Score: 2 Votes (Like | Disagree)
44267547 Avatar
87 months ago
Apple is clearly emphasizing on their services and it's continued growth is showing. Excellent work.
Score: 1 Votes (Like | Disagree)
Strelok Avatar
87 months ago
Apple is clearly emphasizing focus on their services and it's continued growth is showing. Excellent work.
Might make the “Apple is only an iPhone company and is doomed” crowd shut up for once.
Score: 1 Votes (Like | Disagree)
44267547 Avatar
87 months ago
Might make the “Apple is only an iPhone company and is doomed” crowd shut up for once.
Probably not on Macrumors, there's always someone complaining on here that "Apple Doesn't know what they're doing" or "Cook should be fired."But the headline says it all and their continued success is reflective of their numbers.
Score: 1 Votes (Like | Disagree)
Johnny907 Avatar
87 months ago
Might make the “Apple is only an iPhone company and is doomed” crowd shut up for once.
What are those services supporting, ya think?
I don’t see many people signing up for iCloud storage if they don’t own an iPhone to back up to it from.
[doublepost=1509659411][/doublepost]Guess this means they won’t be dropping the price of iCloud storage anytime soon. Maybe after they finish that data center. One can hope.
Score: 1 Votes (Like | Disagree)

Popular Stories

Apple WWDC24 Apple Intelligence hero 240610

Apple Explains iPhone 15 Pro Requirement for Apple Intelligence

Wednesday June 19, 2024 4:48 am PDT by
With iOS 18, iPadOS 18, and macOS Sequoia, Apple is introducing a new personalized AI experience called Apple Intelligence that uses on-device, generative large-language models to enhance the user experience across iPhone, iPad, and Mac. These new AI features require Apple's latest iPhone 15 Pro and iPhone 15 Pro Max models to work, while only Macs and iPads with M1 or later chips will...
Apple Vision Pro 2 Feature 2

Apple Reportedly Suspends Work on Vision Pro 2

Tuesday June 18, 2024 8:17 am PDT by
Apple has suspended work on the second-generation Vision Pro headset to singularly focus on a cheaper model, The Information reports. Apple was widely believed to have plans to divide its Vision product line into two models, with one "Pro" model and one lower-cost standard model. The company is said to have been deprioritizing the next Vision Pro headset over the past year, gradually...
M4 Real Feature Red

M4 MacBook Pro Models Expected to Launch in Late 2024

Tuesday June 18, 2024 10:50 am PDT by
MacBook Pro models with an M4 chip are expected to launch in the fourth quarter of 2024, according to display analyst Ross Young. In a tweet for subscribers, Young said that panel shipments for new 14-inch and 16-inch MacBook Pro models are set to begin in the third quarter of 2024, which suggests a launch toward the end of the year. Apple started its M4 chip refresh in May with the launch...
iPhone 16 Pro Max Generic Feature 2

5 Biggest Changes Rumored for iPhone 16 Pro Max

Wednesday June 19, 2024 5:00 am PDT by
Given Apple's rumored plan to add an all-new high-end tier to its iPhone 17 series in 2025, this could be the year for Apple to bring its boldest "Pro Max" model to the table — the kind of iPhone 16 upgrade that stands tall above its siblings, both figuratively and literally. If you have been holding out for the iPhone 16 Pro Max, here are five of the biggest changes rumored to be coming...
Apple Intelligence General Feature

Apple Intelligence Features Not Coming to European Union at Launch Due to DMA

Friday June 21, 2024 9:44 am PDT by
Apple today said that European customers will not get access to the Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing features that are coming to the iPhone, iPad, and Mac this September due to regulatory issues related to the Digital Markets Act. In a statement to Financial Times, Apple said that there will be a delay as it works to figure out how to make the new...
2022 back to school apple feature

Apple's 2024 Back to School Sale Launching This Week

Monday June 17, 2024 12:27 pm PDT by
Apple will launch its annual Back to School promotion for university students in the United States and Canada this week, according to Bloomberg's Mark Gurman. Apple's back to school sales provide students with a free Apple gift card when purchasing a Mac or an iPad, and this year's promotion could help Apple push the new M2 iPad Air and M4 iPad Pro models. Last year, Apple offered U.S....