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.

appleservices
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.

Top Rated Comments

Will.O.Bie Avatar
58 months ago
I hope they consider bundling some of these services for a decent price.
Score: 5 Votes (Like | Disagree)
44267547 Avatar
58 months ago
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.
Score: 3 Votes (Like | Disagree)
Wanted797 Avatar
58 months ago

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.
Score: 2 Votes (Like | Disagree)
FightTheFuture Avatar
58 months ago

...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.
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.
Score: 2 Votes (Like | Disagree)
dumastudetto Avatar
58 months ago
This is still only the beginning for services revenue.

Apple is basically untouchable now. Nobody can compete.
Score: 2 Votes (Like | Disagree)
AppleHealth Avatar
58 months ago
Interesting to see him not mention News+, I do wonder how that is doing. I’m currently using it (free month) and while I like magazines, I just can’t get into it. I also really hate the PDF’s being uploaded on there... not good.

Apple TV+ though has been great, really looking forward to the rest of the year! I will defo stayed subscribed after my first year.
Score: 2 Votes (Like | Disagree)

Popular Stories

Apple WWDC24 Apple Intelligence hero 240610

Apple Explains iPhone 15 Pro Requirement for Apple Intelligence

Wednesday June 19, 2024 4:48 am PDT by
With iOS 18, iPadOS 18, and macOS Sequoia, Apple is introducing a new personalized AI experience called Apple Intelligence that uses on-device, generative large-language models to enhance the user experience across iPhone, iPad, and Mac. These new AI features require Apple's latest iPhone 15 Pro and iPhone 15 Pro Max models to work, while only Macs and iPads with M1 or later chips will...
Apple Vision Pro 2 Feature 2

Apple Reportedly Suspends Work on Vision Pro 2

Tuesday June 18, 2024 8:17 am PDT by
Apple has suspended work on the second-generation Vision Pro headset to singularly focus on a cheaper model, The Information reports. Apple was widely believed to have plans to divide its Vision product line into two models, with one "Pro" model and one lower-cost standard model. The company is said to have been deprioritizing the next Vision Pro headset over the past year, gradually...
M4 Real Feature Red

M4 MacBook Pro Models Expected to Launch in Late 2024

Tuesday June 18, 2024 10:50 am PDT by
MacBook Pro models with an M4 chip are expected to launch in the fourth quarter of 2024, according to display analyst Ross Young. In a tweet for subscribers, Young said that panel shipments for new 14-inch and 16-inch MacBook Pro models are set to begin in the third quarter of 2024, which suggests a launch toward the end of the year. Apple started its M4 chip refresh in May with the launch...
iPhone 16 Pro Max Generic Feature 2

5 Biggest Changes Rumored for iPhone 16 Pro Max

Wednesday June 19, 2024 5:00 am PDT by
Given Apple's rumored plan to add an all-new high-end tier to its iPhone 17 series in 2025, this could be the year for Apple to bring its boldest "Pro Max" model to the table — the kind of iPhone 16 upgrade that stands tall above its siblings, both figuratively and literally. If you have been holding out for the iPhone 16 Pro Max, here are five of the biggest changes rumored to be coming...
Apple Intelligence General Feature

Apple Intelligence Features Not Coming to European Union at Launch Due to DMA

Friday June 21, 2024 9:44 am PDT by
Apple today said that European customers will not get access to the Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing features that are coming to the iPhone, iPad, and Mac this September due to regulatory issues related to the Digital Markets Act. In a statement to Financial Times, Apple said that there will be a delay as it works to figure out how to make the new...
2022 back to school apple feature

Apple's 2024 Back to School Sale Launching This Week

Monday June 17, 2024 12:27 pm PDT by
Apple will launch its annual Back to School promotion for university students in the United States and Canada this week, according to Bloomberg's Mark Gurman. Apple's back to school sales provide students with a free Apple gift card when purchasing a Mac or an iPad, and this year's promotion could help Apple push the new M2 iPad Air and M4 iPad Pro models. Last year, Apple offered U.S....