Apple's Services Revenue Hits New All-Time High of $11.46 Billion

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Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, AppleCare, and more, has become an important revenue driver for Apple amid stagnating iPhone sales, leading Apple to focus more effort on its services category.

In the third fiscal quarter of 2019, Apple's services segment brought in $11.46 billion, up from $10.17 billion in the year-ago quarter and $11.45 billion in the second quarter of 2019.


Apple set new all-time records for ‌AppleCare‌, ‌Apple Music‌, ‌App Store‌ search ads, and more, along with a new third-quarter revenue record for the ‌App Store‌. Apple saw double digit services revenue in all five geographical segments.

Apple surpassed 420 million paid subscribers in the third quarter, and Apple CEO Tim Cook said that Apple is well on its way to reaching its goal of reaching $14 billion in services revenue per quarter by 2020.

‌Apple Pay‌ is now in 47 markets and in the June quarter, started adding more new users than PayPal and monthly transaction volume is growing 4x as fast. Apple is starting to roll out NYC transit support for ‌Apple Pay‌ in the United States, and Chicago will follow later this year.

Apple in March announced new services that will continue to boost services revenue in the future. Apple News+, a $9.99 per month service that provides unlimited access to more than 200 magazines, has already launched, and later this year Apple is introducing Apple Arcade, Apple TV+, and a new Apple Card credit card.

Top Rated Comments

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15 months ago
Tim Cook knows what he’s doing.

Apple has always produced the entire user experience or as Steve Jobs used to say “we make the whole widget”.

When Apple started off, that was hardware and software but these days, we use our devices for a lot more than just applications. We use them primarily for services. Apple produces those services as a part of “the whole widget”. That includes TV since a significant part of our time these days is spent watching videos on our devices.

I have high hopes for AppleTV+ and AppleArcade. I also think that Apple is on the right track with AppleNews+, pending adjustments that need to be made like early AppleMusic.
Score: 9 Votes (Like | Disagree)
Avatar
15 months ago

Tim Cook knows what he’s doing.

Apple has always produced the entire user experience or as Steve Jobs used to say “we make the whole widget”.

When Apple started off, that was hardware and software but these days, we use our devices for a lot more than just applications. We use them primarily for services. Apple produces those services as a part of “the whole widget”. That includes TV since a large part of our time on our devices is spent watching videos these days.

He always has and always will. Ignoramus chatter that is rampant on this site is just that--baseless and pointless. This is just the beginning of growth for Services. People will keep spouting off even after it surpasses $50 B and it will.
Score: 8 Votes (Like | Disagree)
Avatar
15 months ago
I think it’s hilarious people are so against Apple pursuing services. A $14B/quarter run rate puts them at $56B annually for services.

That’s more than eBay ($10.74B), Salesforce ($13.28B), PayPal ($15.45B) and Netflix ($15.79B) combined...
Score: 3 Votes (Like | Disagree)
Avatar
15 months ago

Now is the perfect time to build up that install base before the App Store monopoly ends and competitors can price competitively without giving up a cut to Apple

That’s unlikely ever to change. Games consoles have operated under a similar principle for several decades now. If you want to make software for their machines you need to pay a licence fee to Sony, Microsoft or Nintendo. The console makers also have monopoly in the production of game discs and cartridges.
Score: 2 Votes (Like | Disagree)
Avatar
15 months ago
Well....you are playing roulette if you buy a Macbook without AppleCare these days. I am pretty sure the number of people buying a Macbook of any sort without AppleCare has drastically reduced, given Apple's performance on reliability these days.

Not to mention, going for fully sealed laptop designs have no doubt helped to boost AppleCare sales as customers have even less confidence of fixing a broken laptop from elsewhere.

At these prices, AppleCare should have been included in the price of these machines but I don't have much hopes for the conniving Apple of today. Like everything in the US, the balance is heavily tilted in favour of shareholders and corporate weasels rather than the customers.
Score: 1 Votes (Like | Disagree)
Avatar
15 months ago


In the third fiscal quarter of 2019, Apple's services segment brought in $11.46 billion, up from $10.17 billion in the year-ago quarter and $11.45 billion in the second quarter of 2019.

While $10 million quarterly growth isn't nothing, it's a bit of a stretch to use the number to boast "all-time high".
Score: 1 Votes (Like | Disagree)

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