Apple's Services Revenue Hits New All-Time High of $12.7 Billion in Q1 2020

[MacRumors]

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.

Article Link: Apple's Services Revenue Hits New All-Time High of $12.7 Billion in Q1 2020

 

[Will.O.Bie]

I hope they consider bundling some of these services for a decent price.

 

[44267547]

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.

 

[Wanted797]

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.

 

[AppleHealth]

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.

 

[jclo]

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.

I didn't include it because it wasn't particularly interesting, but basically all he said about Apple News+ is that new stuff is being added.

 

[Speedy2]

I didn't include it because it wasn't particularly interesting, but basically all he said about Apple News+ is that new stuff is being added.

...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.

 

[FightTheFuture]

...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.

 

[Appleman3546]

Look at Apple take advantage of it’s monopoly advantage by charging less than the competition (or taking a cut of the competition). I wonder what will happen to some of the less established or struggling services like News+ when Apple is required in 2021 by the EU or US Supreme Court to allow rival app stores or browser downloaded apps (like on the Mac)?

 

[Jimmy James]

20 years ago this total revenue was a dream for Apple.

 

[dumastudetto]

This is still only the beginning for services revenue.

Apple is basically untouchable now. Nobody can compete.

 

[ipponrg]

This is still only the beginning for services revenue.

Apple is basically untouchable now. Nobody can compete.

Are you talking financials or tech? In tech, they are touchable. To most people, they don’t care about Apple’s financials.

 

[FightTheFuture]

Are you talking financials or tech? In tech, they are touchable. To most people, they don’t care about Apple’s financials.

The comment clearly discusses services revenue. This article is about financials. Your right, Apple could easily be dethroned by a smart speaker, folding phone, or a meteor hitting Cupertino. But the 37% spike in services revenue is truly impressive.

 

[mi7chy]

Explains why they restrict you from installing and running console emulators, Kodi, etc. on iOS/iPadOS so they can push subscriptions unlike Macs/Macbooks where you actually own the device and have the freedom to install/run whatever you want.

 

[scrapesleon]

Well there you have it services is a top priority now

 

[DailySlow]

Yes, I don’t back it up to iCloud, and I much prefer to curate my news from all over -

...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.

 

[szw-mapple fan]

20 years ago this total revenue was a dream for Apple.

To be fair, any revenue number from the past 10 years would have been a dream for Apple in 2000.

 

[ipponrg]

The comment clearly discusses services revenue. This article is about financials. Your right, Apple could easily be dethroned by a smart speaker, folding phone, or a meteor hitting Cupertino. But the 37% spike in services revenue is truly impressive.

Definitely not knocking down services despite how broad of a spectrum it covers.