Apple's Services Revenue Reaches $17.5 Billion in Q3 2021, Setting New All-Time Record

[MacRumors]

Apple's services category, which includes the App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, Apple Fitness+, and more, saw another quarter of incredible growth according to Apple's earnings results for the third fiscal quarter of 2021 (second calendar quarter).

Services brought in $17.5 billion during the quarter, up 33 percent from $13.2 billion in the year-ago quarter and up from $16.9 billion last quarter.

Cloud services, Apple Music, advertising, video, and payments saw all-time revenue records, while the App Store saw a new June quarter revenue record.

During the earnings call announcing the results, Apple CFO Luca Maestri said that Apple's install base of devices hit a new all-time high as well, which helps drive services growth.

Apple now has more than 700 million paid subscriptions, which is up 150 million from last year, and is four times the number of subscriptions that Apple had four years ago.

Paid accounts on digital content stores reached a new all-time high across each geographic segment, and paid accounts increased by double digits.

Apple CEO Tim Cook highlighted the 35 Emmy nominations that Apple TV+ shows have received, and he said that Apple TV+ viewers are loving shows like "Ted Lasso" and "Mythic Quest."


Article Link: Apple's Services Revenue Reaches $17.5 Billion in Q3 2021, Setting New All-Time Record

 

[macsplusmacs]

Just wait till the pent up macbook pro m1x sales hit!!

to the moon~!!!!

 

[Caliber26]

Me and my $.99/50GB iCloud storage plan feel very seen. 😊

 

[Caliber26]

Just wait till the pent up macbook pro m1x sales hit!!

to the moon~!!!!

That’s hardware. The $17.5B is for services.

 

[Yokon54]

Cash cow with huge margins. This is the reason AAPL is a services company.

 

[nutmac]

Anyone know the rough percentage of service revenue that App Store purchases and subscriptions bring in?

 

[firewood]

Record App store revenues!

Remember that for every $1 that Apple gets in revenue, some app developer is netting between $3.33 and $6.67 (OK, minus $99/annum, and it takes roughly 2 months before these profits hits the dev's bank account).

 

[Spock]

$17 billion just in services, that’s crazy. I remember back in the iTools days when Apple had to almost pay people to use it.

 

[Villarrealadrian]

Well charging 15 percent and 30 percent like the mafia can easily give you this number!

 

[MacBH928]

Do they have a breakdown for what do people pay for? Thats crazy amount given a lot of the apps are ad based, free, or 1 time purchase, not to mention out of store subscriptions!? Unless Apple makes money from the ads in all the apps.

700 million paid subscriptions

700 million subscribed paying monthly!? As in iCloud subscribers? I thought people are very reluctant to pay a subscription. Thats an outrageous number, probably every one who actually uses an iPhone.

I no longer blame developers who switch to subscription model if these are the numbers.

 

[matrix07]

As in iCloud subscribers?

Yes.

Almost everyone needs some level of iCloud subscription for iPhone to function.

 

[Maconplasma]

Well charging 15 percent and 30 percent like the mafia can easily give you this number!

Exactly because iCloud, Apple Music, AppleTV+ AppleCare, Apple Fitness+ and Apple Pay are all getting 15-30% from Developers.....OH WAIT. 🙄

 

[TVreporter]

It’s all due to Apple Arcade!! 😂


Mind bogging numbers - I’ve contributed via AA, AM, and 2TB iCloud

You’re welcome Tim!

 

[lazyrighteye]

Are Apple’s continued “best qtr ever for [insert category hete]” financial calls simply a result of an expanding user base or are they just kicking serious ass? Combo? Feels like they’ve had a serious decade+ run of best ever qtrs.

 

[entropys]

Just wait until people are no longer free AppleTV+

 

[lazyntired]

Just wait until people are no longer free AppleTV+

True! I just canceled mine right before renewal - that free year and a half was good for a start but not for the long haul. Same with Apple Fitness.

 

[matrix07]

Are Apple’s continued “best qtr ever for [insert category hete]” financial calls simply a result of an expanding user base or are they just kicking serious ass? Combo? Feels like they’ve had a serious decade+ run of best ever qtrs.

I think user base continues to grow, and they’re genius in finding things for us to spend to. Fitness+ the latest and what’s next? Apple Books subscription? New 4 TB iCloud plan? Health+? Home+?

 

[hotstreaks]

when more AAA games like nba2K are added, apple arcade and tvOS will be in great shape

 

[Abazigal]

Are Apple’s continued “best qtr ever for [insert category hete]” financial calls simply a result of an expanding user base or are they just kicking serious ass? Combo? Feels like they’ve had a serious decade+ run of best ever qtrs.

I think it’s both. More people entering the ecosystem by way of the iPhone, and Apple marketing additional accessories and services to them more aggressively.

It’s really all about the ecosystem at the end of the day.

 

[4nNtt]

Exactly because iCloud, Apple Music, AppleTV+ AppleCare, Apple Fitness+ and Apple Pay are all getting 15-30% from Developers.....OH WAIT. 🙄

Obviously they can’t charge credit card processing fees because then the Mafia will use the App Store instead of the prepaid cards, credit cards, eBay transactions, etc they currently use to launder money. Gotta charge more then other services to shift the problem somewhere else.

 

[ggibson913]

Apple's services category, which includes the App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, Apple Fitness+, and more, saw another quarter of incredible growth according to Apple's earnings results for the third fiscal quarter of 2021 (second calendar quarter).

Services brought in $17.5 billion during the quarter, up 33 percent from $13.2 billion in the year-ago quarter and up from $16.9 billion last quarter.

Cloud services, Apple Music, advertising, video, and payments saw all-time revenue records, while the App Store saw a new June quarter revenue record.

During the earnings call announcing the results, Apple CFO Luca Maestri said that Apple's install base of devices hit a new all-time high as well, which helps drive services growth.

Apple now has more than 700 million paid subscriptions, which is up 150 million from last year, and is four times the number of subscriptions that Apple had four years ago.

Paid accounts on digital content stores reached a new all-time high across each geographic segment, and paid accounts increased by double digits.

Apple CEO Tim Cook highlighted the 35 Emmy nominations that Apple TV+ shows have received, and he said that Apple TV+ viewers are loving shows like "Ted Lasso" and "Mythic Quest."


Article Link: Apple's Services Revenue Reaches $17.5 Billion in Q3 2021, Setting New All-Time Record

Has anyone actually paid for Apple TV+ yet? I am still getting that cost back from Apple monthly.

 

[ggibson913]

Just wait until people are no longer free AppleTV+

I dunno, to me it was worth the extra $5 per month to get Apple One family over Apple Music Family to get access to Arcade and Apple TV+ Especially since Apple is sending 4.99 of it back.

 

[BigMcGuire]

My family and I are enjoying Apple One Premier. I don't see this changing anytime soon.

Collectively we use 400GB of storage. (394GB as of this writing).
We all use Apple News - some more than others.
My wife and I are heavy users of Apple Fitness - especially in summer months here in California.
While we don't use Apple Arcade, another family member does.
All heavy users of Apple TV and Music.

<shrug>. Not bad for $29.95/mo.

Now.... I do wish Apple would bring iCloud into the modern age. OneDrive and Google Drive make iCloud look prehistoric but as those who uses Apple devices, iCloud has been working really well for us.

 

[citysnaps]

Hat tip to Mr. Cook in recognizing the need to diversify Apple early on.

 

[_Spinn_]

It seems like Apple just keeps setting records each quarter.