Apple's Services Revenue Hits All-Time High of $15.8B Billion in Q1 2021

by

Apple's services category, which includes the App Store, Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, Apple News+, Apple Fitness, and more, saw significant growth in the first fiscal quarter of 2021 (fourth calendar quarter of 2020).

appleservices
According to Apple's latest earnings report, the services segment brought in $15.8 billion, up from $12.7 billion in the year-ago quarter.

Apple now has more than 620 million paying subscribers, reaching a goal that it set to have 600 million by the end of 2020. The ‌App Store‌, iCloud services, ‌Apple Music‌, ‌AppleCare‌ and payment services all saw all-time revenue records, with new services like ‌Apple TV+‌, ‌Apple Arcade‌, ‌Apple News‌+, Apple Card, Apple Fitness+ and Apple One also contributing to services growth, as has ‌Apple Pay‌. ‌Apple Pay‌ is now accepted at 90 percent of retail locations in the U.S.

Across 2020, the ‌App Store‌ grossed more than $64 billion according to a recent report from CNBC. That's up from an estimated $50 billion in 2019. Apple does not confirm ‌App Store‌ sales number, but Apple earlier this month said that $200 billion has been paid out to developers since 2008, a figure that's up $45 billion from the numbers provided in January 2020.

Late in 2020, Apple introduced its ‌Apple One‌ services bundles that pair up services like ‌Apple Music‌‌, ‌‌Apple Arcade‌‌, and ‌‌Apple TV+‌‌ at reduced prices, and it unveiled Apple Fitness+, a $9.99 per month service that provides guided home workout options to Apple Watch owners.

Tag: earnings

Top Rated Comments

TVreporter Avatar
TVreporter
9 months ago
Hey Epic Games, guess Apple is really missing Fortnite.
Score: 4 Votes (Like | Disagree)
MacGizmo Avatar
MacGizmo
9 months ago

Apple Pay is now accepted at 90 percent of retail locations in the U.S.
I find this very, very, VERY difficult to believe. I live in one of the largest cities in the U.S. and I'm hard-pressed to find more than a handful or two of companies that accept Apple Pay.


I'd really like to see a more detailed breakdown across the "services".
They'll never tell us, because Google accounts for the vast majority of that $16 billion... like, close to $12 billion, to be the default search engine.
Score: 2 Votes (Like | Disagree)
iFan Avatar
iFan
9 months ago

I find this very, very, VERY difficult to believe. I live in one of the largest cities in the U.S. and I'm hard-pressed to find more than a handful or two of companies that accept Apple Pay.


They'll never tell us, because Google accounts for the vast majority of that $16 billion... like, close to $12 billion, to be the default search engine.
Apple Pay is essentially available anywhere that you see contactless availability. Look closer and you'll see way more than a few companies accepting it. Even my local hot dog shop accepts it now.

Also: you're confusing Google's annual payment with quarterly revenue. Services revenue this year will be close to $60 billion whereas the Google payment is estimated to be ~$12 billion, as you wrote.
Score: 2 Votes (Like | Disagree)
jmgregory1 Avatar
jmgregory1
9 months ago
I was going to say on the overall revenue increase article, that services and their new Apple One was going to add significantly to their revenue increases. I’m sure I’m not alone, in springing for the Premier tier, since it was just $5 more per month than I was paying, and for that I get Apple TV+, News+ and Fitness+, none of which I was paying for previously.
Score: 2 Votes (Like | Disagree)
Baymowe335 Avatar
Baymowe335
9 months ago
Services were up almost 25%.This is unbelievable.

Don’t be fooled by the relatively small piece of the pie, as hardware revenue is exaggerated during the Christmas quarter.

Services are a massive business with huge margins. Well done.
Score: 2 Votes (Like | Disagree)
Read All Comments

Top Stories

apple arcade orange feature

Eligible Verizon Customers Will Get up to a Year of Apple Arcade Free

Monday May 24, 2021 6:41 am PDT by
Verizon today announced that customers with unlimited, "Play More," or "Get More" plans will receive up to a year of Apple Arcade or Google Play Pass for free. Starting May 25, new and existing Verizon customers will be eligible to get six months of Apple Arcade or Google Play Pass for free with any unlimited plan, or 12 months of Apple Arcade or Google Play Pass with "Play More" or "Get...
Read Full Article • 16 comments
app store blue banner

App Store Ecosystem Responsible for Estimated $643 Billion in Billings and Sales in 2020, According to Apple-Commissioned Study

Wednesday June 2, 2021 10:00 am PDT by
The App Store ecosystem facilitated an estimated $643 billion in billings and sales in 2020, an increase of 24 percent year-over-year, according to an Apple-commissioned study done by Analysis Group economists. [PDF] The study, "A Global Perspective on the Apple App Store Ecosystem," comes as Apple awaits a decision in its ongoing trial with Epic Games, much of which focused on App Store...
Read Full Article • 32 comments
mac mini macbook pro macbook air

Apple's Mac Revenue Up 70% in Q2 2021, iPad Revenue Up Almost 79%

Wednesday April 28, 2021 1:50 pm PDT by
As people continue to work and learn from home, Macs and iPads are selling in record numbers, according to Apple's latest earnings report for the second fiscal quarter of 2021 (first calendar quarter). Apple's Mac category brought in $9.1 billion in revenue, up from $5.4 billion in the year-ago quarter. As for iPads, Apple saw iPad revenue of $7.8 billion, up from $4.4 billion in the...
Read Full Article • 97 comments
steelseries nimbus plus

SteelSeries Offers up to Four Months of Apple Arcade Free With Nimbus+ Controller [Updated]

Tuesday May 18, 2021 7:28 am PDT by
SteelSeries, the makers of popular gaming controllers for Apple devices, has today announced that all purchases of the Nimbus+ Wireless Gamepad Controller will come with up to four free months of Apple Arcade. The SteelSeries Nimbus+ Wireless Gamepad Controller delivers a "console-quality experience" with Apple Arcade's library of games. Iterating on the original Nimbus controller, the...
Read Full Article • 23 comments
appleonebundleoptions

Apple One Service Bundles Set to Launch Tomorrow, Fitness+ Coming This Quarter

Thursday October 29, 2020 1:39 pm PDT by
Apple in September announced Apple One, a new series of services bundles that will let Apple device customers purchase several services together in one package instead of separately, saving money for those who use multiple Apple service products. Ahead of Apple's earnings call, Apple CFO Luca Maestri told Bloomberg that Apple One is set to launch on Friday, October 30. Apple One Bundle...
Read Full Article • 152 comments
aapl logo banner

Apple Ranks Third in Annual Fortune 500 List With $275 Billion Revenue

Wednesday June 2, 2021 7:47 am PDT by
Apple has regained its third-place position in the annual Fortune 500 rankings of the largest companies in the United States by revenue. Apple earned $274.5 billion in revenue in the last fiscal year, an increase of 5.5 percent, and made $57.4 billion in profit, a 3.9 percent increase. Last year, Apple fell to fourth place, but now the company returned to third place, only surpassed by...
Read Full Article • 27 comments
fruit ninja apple arcade

Apple Arcade Adds 30 Classic Games Including 'Fruit Ninja' and 'Cut the Rope Remastered'

Friday April 2, 2021 5:45 am PDT by
Apple today announced that its mobile gaming subscription service, Apple Arcade, is gaining 30 classic games including "Fruit Ninja," "Monument Valley," "Solitaire," and "Cut the Rope" as the service passes a total of 180 titles. The new games come in two brand new categories on the platform called "Timeless Classics" and "App Store Greats." Some of the new Timeless Classics include: Reall...
Read Full Article • 88 comments
apple app store outage

App Store, Apple Music and Other Services Experiencing Issues [Update: Resolved]

Wednesday April 28, 2021 12:31 pm PDT by
The App Store, Apple Books, Apple Music, Apple Music radio, iTunes Store, and iCloud Storage Upgrades are all experiencing downtime right now, according to Apple's System Status page. Affected services may be slow or unavailable, and there are a number of complaints about the App Store and Apple Music on Twitter. The outage began at 11:53 a.m. Pacific Time, and we'll update this article...
Read Full Article • 4 comments
appleservices

Apple Services Revenue Hits All-Time Record High of $16.9 Billion in Q2 2021

Wednesday April 28, 2021 2:28 pm PDT by
Apple's services category, which includes the App Store, Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, Apple News+, Apple Fitness, and more, saw record growth during the second fiscal quarter of 2021 (first calendar quarter). According to Apple's earnings report, the services segment brought in $16.9 billion, up 27 percent from the $13.4 billion in revenue...
Read Full Article • 29 comments
app store blue banner

App Store Sales Saw Unprecedented Growth in 2020, Grossing Over $64 Billion

Friday January 8, 2021 8:57 am PST by
Apple's App Store saw unprecedented growth in 2020, grossing more than $64 billion in sales, according to a report by CNBC. The figure is up from an estimated $50 billion in 2019 and $48.5 billion in 2018. This is a significant growth of 28 percent in 2020, compared to growth of just 3.1 percent in 2019. Apple does not disclose how much revenue its App Store makes every year, but it has ...
Read Full Article • 34 comments