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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.

appleservices-800x228.jpg

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.

Article Link: Apple's Services Revenue Hits New All-Time High of $12.5 Billion in Q4 2019
 
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Classie

macrumors 6502
Nov 3, 2018
274
395
Sweden
This will just keep on growing, soon to become Apples most important section. Hardware will become less important and instead primarily a tool for growing services category.
 
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nt5672

macrumors 68020
Jun 30, 2007
2,270
4,843
This is not good news for those of us who like Apple hardware that supports open standards.
 
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Agent007

macrumors newbie
Nov 3, 2006
26
26
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Good for Apple & Tim Cook. Heartbreaking for we who remember when Mac hardware was BALLER. Optical audio in/out, dual-layer, slot-loading DVD burners, etc.

“I won’t buy another one” threats are moot because it’s hard to leave the OS. That said, I may buy a cheap PC just to see if I can live without Apple hardware (As did I from 1996-2006). I prefer iOS over Android but Apple doesn’t seem to care about Mac hardware anymore. I’m not sold on their half-baked reassurances that they do.

I get that GenZ types (and others) don’t need a PC when they have a phone and I get that “business is business”. I’m just super upset about the State of the Mac?
 
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