Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, and AppleCare is an increasingly important revenue driver for Apple amid stagnating iPhone sales, and services growth is once again hitting an all time high.

During the first fiscal quarter of 2019, Apple's services segment brought in $10.9 billion in revenue, up from the $9.1 billion services earned in the first quarter of 2018.

appleservices
In all five of its geographic regions, including China, Apple saw new December quarter revenues record for the services category.

Apple hit a December quarter record for ‌AppleCare‌, and nearly 16 years after launching iTunes Store, it saw its highest quarterly revenue ever thanks to ‌Apple Music‌. The ‌App Store‌ also saw record results propelled by record sales on Christmas and New Years.

Over 1.8 billion ‌Apple Pay‌ transactions were made during the quarter, 2x more than the previous quarter, and Apple News set a new record with more than 85M monthly active users.

Apple has more than 360 million paid subscribers across its services, an increase of 120 million compared to the year-ago quarter. Apple CFO Luca Maestri said that the company expects the total number of paid subscribers to surpass half a billion in 2020.

Apple is aiming to reach $14 billion in services revenue per quarter by 2020, and it is well on its way towards reaching that goal.

Apple is working on bolstering its services category in 2019, breaking into the television industry. Apple is has more than two dozen original television shows in the works right now, which will be distributed through a TV streaming service set to debut early in 2019.

An Apple News subscription service is also in the works and could come out around the same time, with Apple planning to offer access to magazines for a monthly fee, and there have been rumors Apple is considering a gaming subscription service as well.

Top Rated Comments

martyjmclean Avatar
34 months ago
Let’s hope Apple doesn’t see this growth as “Services are perfect the way they are”. iCloud needs some serious catching up to Google Drive, the Stores backend needs rebuilding, Apple Music needs Spotify level algorithms and playlists, and not to mention Apple Pay Cash etc needs to be available outside the US.
Score: 4 Votes (Like | Disagree)
Relentless Power Avatar
34 months ago
To me, this is where the ‘real’ growth is. Services is a major contributor to Apple, with Apple Music, Apple Pay expanding continuously, iCloud services, and of course the App Store, etc. Obviously hardware is Apple’s focus, but services is on the rise for a very good reason, and has been the trend with their past few earning calls.
Score: 2 Votes (Like | Disagree)
laz232 Avatar
34 months ago
So it’s not the end of the world for Apple? So much gloom and doom lately lol
The point is that I don't care if a company with the name "Apple" exists* - I want that company to create tools (real computers - in my case laptops), that enable me to do my work (and play) in an as effective and enjoyable way as possible.
Music subscriptions and lame TV shows are not that company, nor are expensive phone, or watches or watch bands.

I think that is the reason that a lot of people are upset - we don't care if Apple makes a trillion dollars, if they are not creating the computers that got them to where they are in the first place - we would rather have a really good $100M company than a $100B behemoth that just markets crap to the masses.

*after all, the name IBM is still around too - they are no longer relevant for most people
Score: 2 Votes (Like | Disagree)
d0nK Avatar
34 months ago
Balls to services.
I need a new mbp without the incredibly crap butterfly keyboard attached to it.
Chop, chop Apple.
Score: 2 Votes (Like | Disagree)
pika2000 Avatar
34 months ago
And thus Apple need to do something more. I mean iCloud has not offered anything new or refreshing for a while. iWorks on iCloud don’t get mentioned in keynotes anymore. Instead, Apple is chasing Netflix, a model where there are actually a lot of capital involved (getting rights to the various movies and shows are not cheap). Why not beef up iCloud first to the point that Apple user won’t be interested in Office 365 at all.
[doublepost=1548827842][/doublepost]
Think about it.

Apple Services in 2019 is worth more than the entire Apple company in 2009. This is before Apple even launches the TV service and Apple New subscription, both coming this year. Apple is branching into health, a trillion dollar market and ApplePay is spreading, financial services is also a trillion dollar market. Meanwhile, Apple Watch is growing exponentially, AirPods own 80% of the entire wireless earphone market and AR Glasses are launching next year.

Apple will be fine.
But I want my $500 Mac Pro, iPad with mouse running Windows, and $200 iPhone XIII. So Apple is doomed, doomed I tell ya.
/s
Score: 2 Votes (Like | Disagree)
Scottsoapbox Avatar
34 months ago
I wonder how much of this is Verizon paying for free Apple music for "unlimited" customers. #AccountingCanBeCreative
Score: 1 Votes (Like | Disagree)

Top Stories

gradiente iphone white

Brazilian Electronics Company Revives Long-Running iPhone Trademark Dispute

Tuesday May 19, 2020 1:06 pm PDT by
Apple has been involved in a long-running iPhone trademark dispute in Brazil, which was revived today by IGB Electronica, a Brazilian consumer electronics company that originally registered the "iPhone" name in 2000. IGB Electronica fought a multi-year battle with Apple in an attempt to get exclusive rights to the "iPhone" trademark, but ultimately lost, and now the case has been brought to...
iPhone 13 Dummy Thumbnail 2

Full iPhone 13 Feature Breakdown: Everything Rumors Say We Can Expect

Tuesday August 31, 2021 7:50 am PDT by
With the launch of Apple's iPhone 13 lineup believed to be just a few weeks away, we have compiled all of the coherent rumors from our coverage over the past year to build a full picture of the features and upgrades coming to the company's new smartphones. For clarity, only explicit improvements, upgrades, and new features compared to the iPhone 12 lineup are listed. It is worth noting that...
calculatorapp

iOS 11 Bug: Typing 1+2+3 Quickly in the Calculator App Won't Get You 6

Tuesday October 24, 2017 2:03 pm PDT by
A bug in the built-in Calculator app in iOS 11 is getting some major attention this week, despite the fact that it's been around since iOS 11 was in beta testing. At issue is a calculator animation that causes some symbols to be ignored when calculations are entered in rapid succession. You can try it for yourself: Type 1+2+3 and then the equals sign into the Calculator app quickly. Due to...
apple california streaming event

Apple Event Announced: 'California Streaming' on September 14 With iPhone 13, Apple Watch Series 7 Expected

Tuesday September 7, 2021 9:03 am PDT by
Apple today announced that it will be holding a special event on Tuesday, September 14 at 10:00 a.m. The event will take place at the Steve Jobs Theater on the Apple Park campus in Cupertino, California. As with WWDC and last year's fall events, this new event will be held digitally with no members of the media invited to attend in person. Apple will likely provide pre-taped segments for...
philips hue gradient light strip

Philips Hue Line Gains New Gradient-Enabled Lights, Updated Filament Bulbs and More

Wednesday September 1, 2021 12:30 am PDT by
Philips Hue parent company Signify today announced several new Hue lighting options, the most exciting of which feature the gradient technology that was added to the Philips Hue Play Lightstrip last year. The new Philips Hue Play Gradient Light Tube is designed to sit above or below a TV, adding a blend of multiple lighting colors in a single lighting fixture. The Light Tube comes in either...
iCloud General Feature

iCloud+'s New Custom Email Domain Feature Now Available in Beta

Wednesday August 25, 2021 7:48 am PDT by
Starting with iOS 15, iPadOS 15, and macOS Monterey, users with a paid iCloud+ storage plan can personalize their iCloud email address with a custom domain name, such as johnny@appleseed.com, and the feature is now available in beta. iCloud+ subscribers interested in setting up a custom email domain can visit the beta.icloud.com website, select "Account Settings" under their name, and select ...
iphone 12 colors 2021

iPhone 12 Colors: Deciding on The Right Color

Thursday November 5, 2020 8:35 am PST by
The iPhone 12 and iPhone 12 Pro arrived last October in a range of color options, with entirely new hues available on both devices, as well as some popular classics. The 12 and 12 Pro have different color choices, so if you have your heart set on a particular shade, you might not be able to get your preferred model in that color. iPhone 12 mini and iPhone 12 The iPhone 12 mini and iPhone 12...
apple mixed reality headset mockup feature orange

Apple's Upcoming AR/VR Headset to Require Connection to iPhone

Thursday September 2, 2021 10:08 am PDT by
The first AR/VR headset that Apple has in development will need to be wirelessly tethered to an iPhone or another Apple device to unlock full functionality, reports The Information. It will be similar to the WiFi-only version of the Apple Watch, which requires an iPhone connection to work. The headset is meant to wirelessly communicate with another Apple device, which will handle most of the ...
Top Stories 75 Thumbnail

Top Stories: Last-Minute iPhone 13 Rumors, Apple Announces App Store Changes, and More

Saturday September 4, 2021 6:00 am PDT by
The finish line is in sight! Apple's annual iPhone event is likely just a week or so away and all eyes will be on the company as it unveils the next version of its most popular product line. With any luck, we'll also see the next-generation Apple Watch and perhaps even some new AirPods. Other news this week saw Apple making some more changes to its App Store policies in response to a...
original iphone

Phil Schiller Says iPhone Was 'Earth-Shattering' Ten Years Ago and Remains 'Unmatched' Today

Monday January 9, 2017 7:15 am PST by
To commemorate the tenth anniversary of the iPhone, Apple marketing chief Phil Schiller sat down with tech journalist Steven Levy for a wide-ranging interview about the smartphone's past, present, and future. The report first reflects upon the iPhone's lack of support for third-party apps in its first year. The argument inside Apple was split between whether the iPhone should be a closed...