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.

appleservices
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

ipedro Avatar
37 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)
mdriftmeyer Avatar
37 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)
Ian619 Avatar
37 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)
miscend Avatar
37 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)
macjunk(ie) Avatar
37 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)
nutmac Avatar
37 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)

Popular Stories

maxresdefault

Unbox Therapy Shares Hands-On Look at iPhone 14 Pro Max Replica

Monday May 16, 2022 4:40 am PDT by
YouTuber Unbox Therapy has shared a hands-on look at the iPhone 14 Pro Max using what he claims is a one-to-one replica created by third-party case makers with access to detailed schematics and dimensions for Apple's new upcoming flagship smartphone. As with the iPhone 13 Pro lineup, in 2022, we are expecting a 6.1-inch iPhone 14 Pro and a 6.7-inch iPhone 14 Pro Max, but this time the Pro...
macOS Monterey 2

Apple Releases macOS Monterey 12.4 With Support for Studio Display Webcam Update

Monday May 16, 2022 10:10 am PDT by
Apple today released macOS Monterey 12.4, the fourth major update to the macOS Monterey operating system that launched in October 2021. macOS Monterey 12.4 comes over two months after the launch of macOS Monterey 12.3, an update that added Universal Control. The ‌‌‌‌‌macOS Monterey‌‌ 12.4 update can be downloaded on all eligible Macs using the Software Update section of System...
iOS 15

Apple Releases iOS 15.5 and iPadOS 15.5 With Wallet and Podcast Updates

Monday May 16, 2022 10:00 am PDT by
Apple today released iOS 15.5 and iPadOS 15.5, the fifth major updates to the iOS and iPadOS 15 operating systems that were initially released in September 2021. iOS and iPadOS 15.5 come a little over two months after the launch of iOS 15.4 and iPadOS 15.4. The iOS 15.5 and iPadOS 15.5 updates can be downloaded for free and the software is available on all eligible devices over-the-air in...
iOS 16 mock for article

Gurman: iOS 16 to Include New Ways of System Interaction and 'Fresh Apple Apps'

Sunday May 15, 2022 6:14 am PDT by
iOS 16 will include new ways of interacting with the system and some "fresh Apple apps," Bloomberg's Mark Gurman has said, offering some more detail on what Apple has in store for the upcoming release of iOS and iPadOS set to be announced in a few weeks at WWDC. In the latest edition of his Power On newsletter, Gurman wrote that while iOS 16 is not likely to introduce a major face-lift to...
Prosser Series 8 3

Apple Watch Series 8 Rumored to Feature New Design With Flat Display

Wednesday May 18, 2022 6:21 am PDT by
The Apple Watch Series 8 could feature an all-new design with a flat display, according to the leaker known as "ShrimpApplePro." In his latest video on the YouTube channel Front Page Tech, Jon Prosser highlighted information from ShrimpApplePro that suggests the Apple Watch Series 8 could feature a flat display in what seems to be a design originally rumored for the Apple Watch Series 7. ...
Whatsapp Feature

WhatsApp to Let Users Leave Group Chats 'Silently' and View Rich Link Previews in Status Updates

Tuesday May 17, 2022 3:07 am PDT by
WhatsApp is working on a new feature that will allow users to "silently" leave group chats hosted by the messaging platform instead of all members of the group being notified when they do. As it stands, when someone leaves a group chat, WhatsApp announces their exit to the entire group, making the act of leaving very public. It's not possible right now to leave a group quietly, but WhatsApp...
apple tv 4k design green

Apple Releases tvOS 15.5 for Apple TV HD and Apple TV 4K

Monday May 16, 2022 9:57 am PDT by
Apple today released tvOS 15.5, the fifth major update to the tvOS operating system that first launched in September 2021. tvOS 15.5 comes more than two months after the release of tvOS 15.4, an update that brought support for captive WiFi networks. tvOS 15.5 can be downloaded over the air on the Apple TV through the Settings app by going to System > Software Update. ‌‌‌‌‌‌Apple...