Become a MacRumors Supporter for $25/year with no ads, private forums, and more!

Apple's Services Revenue Hits New All-Time High of $13.3 Billion in Q2 2020

MacRumors

macrumors bot
Original poster
Apr 12, 2001
50,100
11,365


Apple's services category, which includes Tunes, the App Store, the Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple News+, Apple Arcade, and more, has continued to see significant growth even amid the global health crisis, Apple announced today.


In the second fiscal quarter of 2020, Apple's services segment brought in $13.3 billion, up from $11.5 billion in the year-ago quarter, marking 17 percent growth year over year.

Apple in 2019 introduced a number of new services, including Apple News+, Apple TV+, Apple Arcade, and Apple Card, all of which have contributed to the significant growth Apple has seen over the course of the last several months. Apple News, said Cook, has hit a new milestone of 125 million monthly active users, while App Store revenue saw double digit growth. Both FaceTime and iMessage saw daily record use during the quarter as people worked from home and stayed inside.

Apple in 2016 set a goal of doubling its services revenue by fiscal 2020, a goal that Apple is on target to hit this year. Apple now has 515 million paid subscriptions across its platform, and expects to hit 600 million by the end of 2020.

Apple CFO Luca Maestri also said that Apple's active installed base of devices hit all-time highs in all products and geographies.

Article Link: Apple's Services Revenue Hits New All-Time High of $13.3 Billion in Q2 2020
 
Last edited:

jimthing

macrumors 68000
Apr 6, 2011
1,550
778
London, UK (Europe, Earth, Space)
Still think Apple are leaving money on the table with their services offerings.

There is much more they could be doing to get users to pay more.

One obvious point is bundling entertainment services together – perhaps they'll wait until the free ATV+ year's up before announcing (or wait for the paid subscribers figures to arrive before considering offering one?). But the point is that many users are likely to pay more per month for a multi-service plan, than for the one/two separate services, as the 'extra' less important services may then be more enticing to pay for (basically: people love a deal! And constantly pay more overall when companies do them).

But beyond that, they could offer more cloud storage tiers as a starting point, given they have MBP's that can have 8TB internal storage (MP's even more!), users backup devices as well, and share family plans too.
 
Last edited:

DinkThifferent

macrumors 6502
Oct 18, 2018
460
1,085
The Netherlands
Apple News, said Cook, has hit a new milestone of 125 million monthly active users

Good, so we can burry the 'Apple News is dead' discussion.

Funny how the internet is always completely wrong about Apple.

To give you an idea of how wrong we have been about Apple over the past 20 years:


iPod: "Will have trouble digging out a niche in the market."
iPhone: Too expensive, people want a psychical keyboard to type on. flop
iPad: Just a large iPhone, doesn't even run flash, tablets are dead.
Apple Watch: Too expensive, flop
AirPods: They Look stupid, you need courage to wear these in public.
Apple News: Flop, no subscribers
Apple TV+: Will be family friendly shows only, terrible first episodes.
 
  • Like
Reactions: DeepIn2U

jimthing

macrumors 68000
Apr 6, 2011
1,550
778
London, UK (Europe, Earth, Space)
Good, so we can burry the 'Apple News is dead' discussion.

Funny how the internet is always completely wrong about Apple.

To give you an idea of how wrong we have been about Apple over the past 20 years:


iPod: "Will have trouble digging out a niche in the market."
iPhone: Too expensive, people want a psychical keyboard to type on. flop
iPad: Just a large iPhone, doesn't even run flash, tablets are dead.
Apple Watch: Too expensive, flop
AirPods: They Look stupid, you need courage to wear these in public.
Apple News: Flop, no subscribers
Apple TV+: Will be family friendly shows only, terrible first episodes.
Active News users is not active PAID News users.
 

sw1tcher

macrumors 68000
Jan 6, 2004
1,788
2,452
If Apple opened up FaceTime and marketed it as a competitor to Zoom, Teams, Hangouts, etc. and charged a tiny monthly subscription fee (like $1.99) for consumers using non-Apple devices (free for Apple device users) and a bit more for corporate customers... man, services revenue could be up a lot more.
 
Last edited:

xfusejc

macrumors 6502
Dec 29, 2006
345
130
Good, so we can burry the 'Apple News is dead' discussion.
Not that I've ever subscribed to that particular b.s. argument, active users is anyone who opens the Apple News app, which is an easy thing to do (unless you change the widgets, news items are automatically on there). Paid subscribes is a different metric, which it doesn't seem they break down.

Still a great quarter, given everything.
 

FightTheFuture

macrumors 65816
Oct 19, 2003
1,348
1,584
that town east of ann arbor
I bet they are not only counting them, but counting the revenue $$ too. Even though no customers are actually paying, they are probably charging the iPhone division internally the monthly fee from the profits on the sale of the device, and reporting that as "services revenue".
You think Apple would commit securities fraud?
 

gsmornot

macrumors 68040
Sep 29, 2014
3,280
2,902
Hate to say it but I pay for Apple News. Got tired of clicking through and it telling me if I want to read it I need a subscription. Wife reads some of the magazines. Overall I think I overpay but just add it to the other subscriptions, its not like its the only one I have at the moment.
 

Kyle4

macrumors 6502a
Aug 14, 2010
613
851
Canada
Good, so we can burry the 'Apple News is dead' discussion.

Funny how the internet is always completely wrong about Apple.

To give you an idea of how wrong we have been about Apple over the past 20 years:


iPod: "Will have trouble digging out a niche in the market."
iPhone: Too expensive, people want a psychical keyboard to type on. flop
iPad: Just a large iPhone, doesn't even run flash, tablets are dead.
Apple Watch: Too expensive, flop
AirPods: They Look stupid, you need courage to wear these in public.
Apple News: Flop, no subscribers
Apple TV+: Will be family friendly shows only, terrible first episodes.

Not that you don’t make a good point, but the Apple News stat is users of the app in general, not subscribers. It’s still doing quite poorly subscriber wise.
 

DNichter

macrumors G3
Apr 27, 2015
9,058
10,262
Philadelphia, PA
Very impressive, especially since everyone counted Apple out. Cook made a genius move to pivot to wearables and services, while still growing the iOS user base (more choices, lower costs) and it has paid off.
 

Baymowe335

Suspended
Oct 6, 2017
6,448
12,031
Not that you don’t make a good point, but the Apple News stat is users of the app in general, not subscribers. It’s still doing quite poorly subscriber wise.
You don't know that from any reliable source. Apple has 650M paid subscribers to various services.
 

farewelwilliams

macrumors 68040
Jun 18, 2014
3,542
14,481
Reading these reports really rubs me the wrong way when I remember that I have to pay for more than 5GB of iCloud storage in 2020.

your iphone purchase subsidizes the free 5GB iCloud storage.
you want 64GB iCloud storage for life? prepare to pay $99 extra for your phone.
 

Mike MA

macrumors 68020
Sep 21, 2012
2,046
1,679
Apple's services category [...] has continued to see significant growth even amid the global health crisis, Apple announced today.

Well, for once this might be one of the product categories which possibly seeS some significant growth because of the global crisis, as people are forced to spend more time at home seeking for some distraction.
 

lkalliance

macrumors 6502
Jul 17, 2015
481
488
Good for Apple and its shareholders. I don't mean that sarcastically, its a healthy company. Back in the day every Apple earnings call had Apple enthusiasts on the edge of their seats, as the company first pulled itself out of impending bankruptcy and then with the iMac and more especially the iPod became so successful.

But in a way this saddens me a little. I understand, smartphones are a mature market and the company needs to pursue revenues as best they can, but until recently it was easy to separate Apple from the rest this way: Apple sold us the devices, and other companies sold us services. I would fork over however many hundreds of dollars and get this wonderful device, and Apple had made its money. It's the service providers that needed to hawk us stuff and deluge us with advertisements in order to finance their "free" services. It made choosing between Apple's services and Google's services, say, pretty easy for me.

(NOTE: I don't hate or even mistrust Google. I don't mind all the data collection solely in the pursuit of targeted ads. If I'm going to see a bunch of ads, I guess I'd rather see relevant ones. But we ARE being surveilled in this way, and I don't like that. Who knows what entity will leverage all that data for more insidious reasons?)

But as Apple leans more and more heavily on services, I'm afraid those waters will get muddied. It will become less of a clean division. I don't begrudge them whatever strategies they feel they need to use, but it's the first time in a long time--perhaps ever?--that there is this thing that starts to erode my trust in the company.
 

nburwell

macrumors 601
May 6, 2008
4,880
1,807
DE
I'll be very curious to see what Apples reported subscriber numbers are for Apple TV+ once consumers free trial ends.
 

anthogag

macrumors 6502
Jan 15, 2015
391
434
Canada
I subscribe to News+.

One feature needs to be a high priority. When I mirror my 11 Max Pro on my TV (using Apple TV), news and magazines should fill the entire screen. Currently only videos (E.g. video in National Geographic article) and pictures fill the entire screen.

It would likely be quite good if iOS changed when it mirrors on a TV to fill the entire screen. Bluetooth a mouse and keyboard and you have a quick stay-at-home computer because the iPhones are become more powerful every year.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.