Apple's Services Revenue Up 31% Year-Over-Year in 2Q 2018, App Store Sets New Quarterly Revenue Record

by

Apple's services category has continued to see rapid growth and it is becoming an increasingly important revenue driver for Apple.

In the second fiscal quarter of 2018, Apple's services brought in $9.19 billion in revenue, up 31 percent compared to the $7 billion in revenue services earned in the second quarter of 2017.

appleservices
For the last several quarters, Apple's services revenue has grown so quickly that Apple sets a new record with each earnings announcement, and the second quarter of 2018 is no exception. Apple's services category includes iTunes, the App Store, Apple Music, iCloud, Apple Pay, and AppleCare.

Apple CEO Tim Cook said that in Q2 2018, the App Store, Apple Music, Apple and iCloud set all time revenue records. Apple Music set a new record for both revenue and paid subscribers, which, as was announced recently, has hit 40 million.

Apple's paid subscriptions surpassed 270 million, up 100 million from a year ago and up 30 million in the last 90 days alone.

Recently, Morgan Stanley analyst Katy Huberty predicted that over the course of the next five years, services revenue growth will contribute more than 50 percent of Apple's total revenue growth.

Huberty estimated that services revenue is at $30 per device, with just 18 percent of Apple's total device install base subscribing to paid Apple services, leaving a lot of room for growth in the coming years.

Apple in 2016 set itself a goal to double its services revenue by 2020, and the company is well on its way towards hitting that goal. Apple in 2016 earned $24 billion in revenue from services, so the double goal is $48 million.

Top Rated Comments

DeepIn2U Avatar
36 months ago

Part of this growth is the widespread refusal to honour their 14 refund policy without any explanation.

there is always one at least in every thread of successful earnings.

'refusal to honour their 14 refund policy ...' can you try to state that with a bit more clarity please and insight? 14 days, weeks, etc? related to iPads, Macs, phones ... phones on contract purchased through carrier partners or ?! Are you fully aware of their policies in your specific country? we need more reference on just what you're tryin to make others aware of.
Score: 2 Votes (Like | Disagree)
TheAppleFairy Avatar
36 months ago
Nice timing, just in time for after hours trading prices to jump.
Score: 1 Votes (Like | Disagree)
dumastudetto Avatar
36 months ago
Not bad for a company that allegedly can't do services.
Score: 1 Votes (Like | Disagree)
groovyd Avatar
36 months ago
This... services is the future of Apple. That and healthy dividends ;)
Score: 1 Votes (Like | Disagree)

Top Stories

16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
prototype iphone 12 pro

Prototype iPhone 12 Pro Shown Off in Photos

Wednesday January 13, 2021 3:39 pm PST by
Developer Giulio Zompetti, who often shows off prototype versions of Apple devices, today highlighted a prototype version of the iPhone 12 Pro. The iPhone 12 Pro is running an operating system called SwitchBoard, a nonUI version of the iOS 14 update that Apple uses internally. We've seen SwitchBoard on prototype devices before, as Apple uses it to test new features. Zompetti's prototype...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
macbook pro 16 inch thunderbolt

Bloomberg: Next-Generation MacBook Pro to Offer Improved Displays, Faster Charging Over MagSafe

Thursday January 14, 2021 11:36 pm PST by
Following today's report from analyst Ming-Chi Kuo outlining major changes for the next-generation MacBook Pro models coming in the third quarter of this year, Bloomberg's Mark Gurman has weighed in with his own report corroborating some of the details but seemingly differing a bit on others. First, Gurman shares more details on the return of MagSafe charging to the MacBook Pro, indicating...
Hue module dimmer switch

Philips Hue Announces New Wall Switch Module, Dimmer Switch, and Outdoor Light Bar

Thursday January 14, 2021 3:11 am PST by
Philips Hue has announced a new wireless dimmer switch module that lets Hue bridge owners directly control the smart lighting from their standard wall switches. The new Philips Hue wall switch module is the ideal addition to any Philips Hue set up. Installed behind existing light switches, it allows users to turn their existing switch into a smart switch and ensures their smart lighting is...
pat gelsinger intel

Incoming Intel CEO Derides Company's Inability to 'Deliver Better Products' Than Apple's M1 Chip

Friday January 15, 2021 6:17 am PST by
Incoming Intel CEO Pat Gelsinger has said that the company must "deliver better products" than Apple, which he described as a "lifestyle company," and says that Intel's best days are "in front of it" (via The Oregonian). Speaking at an Intel all-hands meeting yesterday, Gelsinger derisively implied that Apple is merely a "lifestyle company," so Intel must be able to surpass its technology: ...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
pioneer carplay wc5700nex

The Best Apple-Related Accessories at CES 2021

Wednesday January 13, 2021 1:16 pm PST by
CES 2021 is taking place digitally this year, and it hasn't been as exciting as in past years because many vendors have opted out. That said, some companies are still showing off some interesting Apple-related accessories that are coming out this year and that will be of interest to Mac, iPad, and iPhone users. Subscribe to the MacRumors YouTube channel for more videos. Pioneer Wireless...