Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, AppleCare, Apple Arcade, Apple News+ and more, is an important revenue driver for Apple amid flagging iPhone sales, leading Apple to focus more effort on its services category.
In the fourth fiscal quarter of 2019, Apple's services segment brought in $12.5 billion, up from $10.6 billion in the year-ago quarter and $11.46 billion in the third quarter of 2019. Services grew 18 percent year-over-year, and Apple said that it saw growth in all regions around the world.
Apple CEO Tim Cook said that almost every one of Apple's services set new all-time revenue records, including its search ad business, Apple Music, Apple Care, cloud services, and the App Store. Apple's services category is now the size of a Fortune 70 company by revenue.
450M paid subscribers across its services. Apple well on the way to surpassing the 500M mark during 2020.
For Apple Pay, revenue and transactions more than doubled year over year with more than 3 billion transactions, growing four times as fast as PayPal. Apple now has 450 million paid subscribers across its services, and is on its way to surpassing the 500 million mark in 2020.
Apple later this week will unveil Apple TV+, a new $4.99 per month streaming television service. Apple TV+ revenue will be limited for the first year as Apple is giving it away for free to customers who have purchased a new device, but along with Apple News+, Apple Arcade, and Apple Card, Apple TV+ could drive significant services growth in the future.