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

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.

Popular Stories

election results 2024 live activities

Track 2024 U.S. Election Results Live on Your iPhone Lock Screen

Tuesday November 5, 2024 5:02 am PST by
Apple News is providing Live Activities support for the 2024 U.S. presidential election, allowing iPhone and iPad users to track electoral results in real time directly from their Lock Screen. The feature is rolling out for U.S. users over the course of Election Day, November 5, providing continuous updates of the electoral count. So if you're interested, you don't need to repeatedly check...
Generic iOS 18

Everything New in iOS 18.2 Beta 2

Monday November 4, 2024 12:34 pm PST by
Apple today seeded the second betas of upcoming iOS 18.2 and iPadOS 18.2 updates to developers, and Apple is continuing to refine the Apple Intelligence capabilities. There are also a handful of smaller features that are worth knowing about. Find My Find My has a new option to Share Item Location with an "airline or trusted person" that can help you locate something that you've misplaced....
iCloud General Feature

Here's What's New in Apple's Updated iCloud Terms and Conditions Taking Effect Next Week

Friday September 13, 2024 7:39 am PDT by
Apple has started notifying users about an upcoming revision to its iCloud Terms and Conditions, which takes effect on Monday, September 16. We compared the text of the upcoming iCloud Terms and Conditions with the current U.S. version from September 18, 2023 and identified four key changes: "Apple ID" references have been changed to "Apple Account" throughout. iCloud users must agree to ...
ipads early bf deals

The Best Early Black Friday iPad Deals

Tuesday November 5, 2024 7:02 am PST by
Black Friday is still a few weeks away, but you can already find great prices on numerous iPads, including the 9th generation iPad, 10th generation iPad, iPad Air, and iPad mini. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Of course, there is a chance that ...
ios 18 2 chatgpt plus

iOS 18.2 Beta 2 Shows Siri ChatGPT Limit, Offers 'Plus' Upgrade Option

Monday November 4, 2024 10:54 am PST by
With the second beta of iOS 18.2 that's available for developers today, Apple has further fleshed out the ChatGPT integration that's available with Siri. In the Settings app, there's now a section that shows the ChatGPT daily limit, and offers an option to upgrade to the paid ChatGPT Plus plan. The beta includes an Advanced Capabilities section with a "Daily Limit" reading that shows up as...
M4 MacBook Pros Thumb

M4 MacBook Pro Reviews: Processor Benchmarks Impress, New Nano-Texture Option Worth the Extra $150

Thursday November 7, 2024 6:14 am PST by
The first wave of reviews of Apple's new M4-powered MacBook Pro models were published this morning. We've collected some of the latest impressions from YouTube channels and select media outlets below. Apple last month announced the new 14-inch and 16-inch MacBook Pro models, adding next-generation M4, M4 Pro, and M4 Max chips, with Thunderbolt 5 ports on higher-end models, display and camera ...
early apple watch black friday

The Best Early Black Friday Apple Watch Deals

Wednesday November 6, 2024 6:33 am PST by
Black Friday is just around the corner, and Apple Watch deals have begun appearing ahead of the shopping holiday on November 29. In this article, we'll take a look at all of the best early Black Friday Apple Watch deals, including the new Series 10 models. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small...

Top Rated Comments

TVreporter Avatar
49 months ago
Hey Epic Games, guess Apple is really missing Fortnite.
Score: 4 Votes (Like | Disagree)
MacGizmo Avatar
49 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
49 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
49 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
49 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)