Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, iCloud, Apple Pay, and AppleCare, continues to be an increasingly important revenue driver for Apple, and services growth is once again at an all time high.

During the fourth fiscal quarter of 2018, Apple's services segment brought in $10 billion in revenue, up 17 percent from the $8.5 billion services earned in the fourth quarter of 2017.

appleservices
According to Apple CEO Tim Cook, services growth was actually at 27 percent if a one-time favorable adjustment from the year-ago quarter is excluded.

Several services categories, including the App Store, AppleCare, Apple Pay, and Apple Music hit all-time revenue records. 330 million Apple customers subscribe to Apple services, a number that has increased 50 percent compared to a year ago.

Cook highlighted Apple Pay's success during the quarter. Apple Pay transaction volume tripled year-over-year, with Apple Pay generating significantly more transactions than PayPal mobile and growing 4x faster.

With the rollout of Apple Pay at Costco locations in the United States, 71 out of 100 major retailers support Apple Pay, and 60 percent of all U.S. retail locations support the Apple Pay service.

Apple has said that it is aiming to reach $14 billion in services revenue per quarter by 2020, a goal the company is well on its way to achieving.

Earlier this year, 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.

Apple is working on bolstering its services category in the future, breaking into the television industry. Apple has more than a dozen original television shows in the works right now, which it is rumored to be planning to distribute via television streaming service set to debut sometime during the first half of 2019.

Top Rated Comments

alexhardaker Avatar
34 months ago
I, for one, welcome our new Doomed Overlords.
What?
Score: 1 Votes (Like | Disagree)
Hildy Avatar
34 months ago
Please make iCloud Drive better.., more folder sharing etc. Also better connectivity to Photos, smart shared albums would make life much easier. iCloud based iTunes libraries..?
Score: 1 Votes (Like | Disagree)
jav6454 Avatar
34 months ago
Once again, the Services division at Apple brings in more money than many top Fortune 500, and perhaps even Fortune 200.
Score: 1 Votes (Like | Disagree)

Top Stories

16 inch macbook pro m2 render

When Can We Expect the Redesigned MacBook Pros Now?

Wednesday June 16, 2021 7:11 am PDT by
With no sign of redesigned MacBook Pro models at this year's WWDC, when can customers expect the much-anticipated new models to launch? A number of reports, including investor notes from Morgan Stanley and Wedbush analysts, claimed that new MacBook Pro models would be coming during this year's WWDC. This did not happen, much to the disappointment of MacBook Pro fans, who have been...
2021 back t0 school

Apple Launches 2021 Back to School Promotion: Free AirPods With Eligible Mac or iPad Purchase

Thursday June 17, 2021 4:56 am PDT by
Apple today launched its seasonal back-to-school sale for the upcoming school year in the United States and Canada, offering students free AirPods alongside purchases of select Macs and iPad models. Similar to last year's promotion, this year's offer includes free AirPods alongside the purchase of a MacBook Air, MacBook Pro, the new 24-inch iMac, the Mac Pro, Mac mini, and the new M1-powered ...
maxresdefault

Apple CEO Tim Cook: Sideloading Apps Would 'Destroy the Security' of the iPhone

Wednesday June 16, 2021 10:49 am PDT by
Apple CEO Tim Cook this morning participated in a virtual interview at the VivaTech conference, which is described as Europe's biggest startup and tech event. Cook was interviewed by Guillaume Lacroix, CEO and founder of Brut, a media company that creates short-form video content. Much of the discussion centered on privacy, as it often does in interviews that Cook participates in. He...
YouTube Picture in Picture Feature

YouTube Says iOS Picture-in-Picture Coming to All US Users

Friday June 18, 2021 9:41 am PDT by
After a long wait, YouTube for iOS is officially gaining picture-in-picture support, allowing all users, non-premium and premium subscribers, to close the YouTube app and continue watching their video in a small pop-up window. In a statement to MacRumors, YouTube says that picture-in-picture is currently rolling out to all premium subscribers on iOS and that a larger rollout to all US iOS...
applecare lower prices

Apple Lowers Prices of AppleCare+ Plans for M1 MacBook Air and MacBook Pro

Thursday June 17, 2021 7:33 am PDT by
Apple today lowered the prices of AppleCare+ plans for MacBook Air and 13-inch MacBook Pro models equipped with the M1 chip. Coverage offered by the plans, as well as accidental damage fees, appear to remain unchanged. In the United States, AppleCare+ for the MacBook Air now costs $199, down from $249. The new price applies to both M1 and Intel-based MacBook Air models, although Apple no...
m1 v intel thumb

Intel Processor Market Share May Fall to New Low Next Year Due to Apple Silicon

Friday June 18, 2021 2:06 am PDT by
Intel may see its market share fall to a new low next year, in large part thanks to Apple's decision to move away from using Intel processors in its Mac computers and instead use Apple silicon. Apple announced last year that it would embark on a two-year-long journey to transition all of its Mac computers, both desktops, and laptops, to use its own in-house processors. Apple is expected to...
apple watch edition series 5 ceramic black prototype

Apple Planned Black Ceramic Apple Watch Edition Series 5

Wednesday June 16, 2021 5:45 am PDT by
Apple considered offering a black version of the ceramic Apple Watch Edition Series 5, according to newly-shared images of the prototype casing. The images, shared on Twitter by the prototype collector and leaker known as "Mr. White," show a prototype black ceramic Apple Watch casing, alongside the white ceramic version. The ceramic Apple Watch Edition Series 5 was never available in a...
maxresdefault

Demo: Check Out AirPlay 2 on a Mac in macOS Monterey

Tuesday June 15, 2021 11:57 am PDT by
With macOS Monterey, Apple has introduced expanded AirPlay 2 support, so you can AirPlay content from an iPhone, iPad, or even another Mac to your main Mac. We thought we'd do a quick demo of this handy new feature in our latest YouTube video. Subscribe to the MacRumors YouTube channel for more videos. With AirPlay to Mac, you can extend or mirror an Apple device's display to a Mac, and since ...
app store blue banner

U.S. Antitrust Legislation Would Require Users to Be Able to Delete All Pre-Installed Apple Apps [Updated]

Wednesday June 16, 2021 11:26 am PDT by
Update: Bloomberg inaccurately interpreted the original comments and has since drastically changed the wording of its article. The original Bloomberg piece said that Apple would be prohibited from pre-installing its own apps on iPhones. The updated Bloomberg article has been rewritten to clarify that the antitrust legislation prohibits Apple from preventing users from removing Apple-created...
3nm apple silicon feature

Apple Supplier TSMC Readies 3nm Chip Production for Second Half of 2022

Friday June 18, 2021 6:59 am PDT by
Apple supplier TSMC is preparing to produce 3nm chips in the second half of 2022, and in the coming months, the supplier will begin production of 4nm chips, according to a new report from DigiTimes. Apple had previously booked the initial capacity of TSMC's 4nm chip production for future Macs and more recently ordered TSMC to begin production of the A15 chip for the upcoming iPhone 13,...