Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, and more, has become a significant revenue driver for Apple.
In the first fiscal quarter of 2019, Apple's services segment brought in $12.7 billion, up from $10.9 billion in the year-ago quarter, marking growth of 17 percent. Every geographic saw double-digit growth, setting new records.
Apple across 2019 focused heavily on services, introducing Apple News+, Apple TV+, Apple Arcade, and Apple Card, all of which have contributed to the company's services growth. Cook shared some details on some of Apple's most popular services.
The App Store set a new December revenue record and hit $386 million in sales on New Year's Day, and Apple News has more than 100 million active users in the U.S., Australia, UK, and Canada. Apple Pay revenue and transactions more than doubled, exceeding 15 billion transactions. Apple plans to expand Apple Pay transit features to allow customers in Shenzhen and Guangzhou to pay for trips using a tap of the iPhone or the Apple Watch.
Cook said that Apple TV+ is off to a "rousing start" and is "very strong" for people getting it in a bundle and people who have not purchased a new Apple device. Apple Arcade is also off to a strong start.
Cook also told Reuters that Apple expects to surpass its goal of 500 million subscribers for 2020 during current the quarter ending in March, well ahead of schedule. Apple is now aiming to hit 600 million subscribers by the end of the calendar year.
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Top Rated Comments
(View all)12.7 billion in the 1st Qt? That’s insane. Think about that number for a minute, and then think about how services has been on the rise for Apple for the last 36 months. I don’t even think it’s about hardware sales anymore as much as it is now services are equally just as important.
Yep. Apple saw the way things where going and like that adapted their business model to suit.
News+ is a hard sell. Even harder than AppleCare. But not many services are like it, so they just have to wait and see if it matures....in contrast to most other services for which he mentioned specific growth numbers (users or revenue). Adding new content actually means increasing expenditure.
So yeah, I too take this as a sign that this particular service isn't doing too great.
Apple is basically untouchable now. Nobody can compete.
Apple TV+ though has been great, really looking forward to the rest of the year! I will defo stayed subscribed after my first year.