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Apple's Services Revenue Hits New All-Time High of $14.5 Billion in Q4 2020

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Apple's services category, which includes iTunes, the App Store, Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, Apple News+ and more, continues to see major growth each quarter.

appleservices.jpg

According to today's earnings report covering the fourth fiscal quarter of 2020 (third calendar quarter), Apple's services segment brought in $14.5 billion, up from $12.5 billion in the fourth fiscal quarter of 2019.

Over the course of the last fiscal year, services earned $53.8 billion, up from $46.3 billion in fiscal 2019.

Apple's number of paid accounts reached a new all time high with double digit growth, and paid subscriptions grew more than 35 million compared to last quarter. Apple now has 585 million paid subscribers, up 135 million from a year ago.

Apple has plans to add to its services offerings, with new products coming as soon as tomorrow. Apple One will offer bundles of services like Apple Music, Apple Arcade, and Apple TV+ at reduced prices, while Fitness+ is a new $9.99 per month service that will provide guided workouts to Apple Watch users.

Apple One is launching on Friday, October 30, and Apple Fitness+ is launching later this quarter.

Article Link: Apple's Services Revenue Hits New All-Time High of $14.5 Billion in Q4 2020
 
Article Link
https://www.macrumors.com/2020/10/29/apple-services-revenue-all-time-high-q4-2020/
Last edited:
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LegCortex

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Sep 17, 2020
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I mentioned this in another thread, but I believe $5 billion of that is the quarterly payment from Google for making it the default search engine in Safari and Siri.
 
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crcuilla

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Feb 5, 2019
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Of course we'll never see it, but a breakdown of that revenue (and growth) by these categories would be fascinating:

iTunes, the App Store, Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, Apple News+
 
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crcuilla

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Feb 5, 2019
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LegCortex said:
I mentioned this in another thread, but I believe $5 billion of that is the quarterly payment from Google for making it the default search engine in Safari and Siri.
Click to expand...

Interesting. It wouldn't be surprising. I'd consider it a bit disingenuous too.

I wonder how much is AppleCare too.

I get the picture they're trying to paint ("we're not just an iPhone company"). But, it would be interesting to see how much of that services revenue is tied directly to iPhone (and then Mac). This is somewhat understandable. They're building an ecosystem. But they previously tried to make the case (I can't find the quote) that a good chunk of this new services business was independent of iPhone. It's not. We know it.

They're trying to make the case while they try to build out an actual services business. That's all well and fine. But stockholders who are seeing services as a key growth area might be aware that it could be a bit of a "potemkin village" right now.
 
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TracesOfArsenic

TracesOfArsenic

macrumors 65816
Feb 22, 2018
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Launch more services, you see a bump. Funny that.

Apple has essentially infinite money, I wish they had the focus to make better use of it at a micro level. Launching mediocre of even broken services/programs is Google's game but I guess in the race to catch up Apple has to do the same thing.
 
gridlocked

gridlocked

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Apr 28, 2019
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I really hope they get into search and can profit much more themselves than what Google's paying them while doing it the right way for consumers. Google would take a HUGE hit too which would be a significant plus.
 
BuddyTronic

BuddyTronic

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Jul 11, 2008
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crcuilla said:
Interesting. It wouldn't be surprising. I'd consider it a bit disingenuous too.

I wonder how much is AppleCare too.

I get the picture they're trying to paint ("we're not just an iPhone company"). But, it would be interesting to see how much of that services revenue is tied directly to iPhone (and then Mac). This is somewhat understandable. They're building an ecosystem. But they previously tried to make the case (I can't find the quote) that a good chunk of this new services business was independent of iPhone. It's not. We know it.

They're trying to make the case while they try to build out an actual services business. That's all well and fine. But stockholders who are seeing services as a key growth area might be aware that it could be a bit of a "potemkin village" right now.
Click to expand...

It’s 22% of their revenue right?

you think they are faking it or miscategorizing this revenue? Ok - but it’s Billions of dollars - so maybe they can have the accountant put it in another category.

The money is revenue. The bottom line remains the same.


I don’t see the analogy or the rationale to beef up the services category. It would have to mean some other category would go up on the books if they recategorized it right?
 
H

hans1972

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Apr 5, 2010
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LegCortex said:
I mentioned this in another thread, but I believe $5 billion of that is the quarterly payment from Google for making it the default search engine in Safari and Siri.
Click to expand...

Are you saying Google pays Apple $20 billion a year?
 
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