Apple's Services Revenue Up 34% Year-Over-Year in 4Q 2017, Setting New All-Time Quarterly Record

Discussion in 'iOS Blog Discussion' started by MacRumors, Nov 2, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    Apple's services category, which includes the App Store, iTunes Store, Apple Music, Apple Pay, AppleCare, iCloud, licensing, and other services, set an all-time quarterly record revenue in the fourth fiscal quarter of 2017.

    During the quarter, the services category brought in $8.5 billion, up from $6.3 billion in the year-ago quarter for an impressive 34 percent growth.

    Apple's services category is the size of a Fortune 100 company, a milestone Apple hit earlier this year. Apple often attributes much of the growth of its services category to the App Store, and that continues to be the case this quarter.

    iOS 11 brought an entirely new App Store experience that splits Games and Apps into separate tabs and introduces a new "Today" section that allows Apple to better highlight the wide variety of apps that are available in the App Store, offering up a range of editorial picks to improve app discovery. Apple says the new design has increased customer visits, the number of apps downloaded, and the amount of time customers spend in the store.

    The iOS 11 update also introduced ARKit, making the iPhone and the iPad the largest augmented reality platform in the world. There are already more than 1,000 ARKit apps available for download from the App Store.

    Apple Music revenue also "grew strongly" during the quarter, with 75% growth in subscribers year-over-year, and iCloud also saw "double-digit growth" when it comes to monthly average users and revenue. Apple has 210 million paid subscriptions across all its services category, up 25 million in 4Q 2017 alone.

    Apple is aiming to double its 2016 services revenue by 2020, and Apple CEO Tim Cook this afternoon said the company is well on its way to hitting that goal.

    Article Link: Apple's Services Revenue Up 34% Year-Over-Year in 4Q 2017, Setting New All-Time Quarterly Record
     
  2. Relentless Power macrumors Core

    Relentless Power

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    Apple is clearly emphasizing on their services and it's continued growth is showing. Excellent work.
     
  3. Strelok macrumors 6502a

    Strelok

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    Might make the “Apple is only an iPhone company and is doomed” crowd shut up for once.
     
  4. Relentless Power macrumors Core

    Relentless Power

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    #4
    Probably not on Macrumors, there's always someone complaining on here that "Apple Doesn't know what they're doing" or "Cook should be fired."But the headline says it all and their continued success is reflective of their numbers.
     
  5. Johnny907 macrumors 6502a

    Johnny907

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    #5
    What are those services supporting, ya think?
    I don’t see many people signing up for iCloud storage if they don’t own an iPhone to back up to it from.
    --- Post Merged, Nov 2, 2017 ---
    Guess this means they won’t be dropping the price of iCloud storage anytime soon. Maybe after they finish that data center. One can hope.
     
  6. Mike MA macrumors 68000

    Mike MA

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    #6
    Profit in this market category would be interesting though. Same counts for others.
     
  7. kylew1212 macrumors member

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    Huntsville, AL
    #7
    iCloud pricing is not that bad, compared to other services.. But it's nice when they drop the price.
     
  8. jayducharme macrumors 68040

    jayducharme

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    Maestri said, "The fact that our services category is growing is a good thing, since our gross margin from services is very strong." To me that says they're profiting quite nicely.

    It's good to see the Mac sales rebound as well. Combined with the Services category, Apple certainly seems to be balancing itself a bit better so that it's not so heavily dependent on the iPhone.
     
  9. DeepIn2U macrumors 601

    DeepIn2U

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    #9
    Maybe this will make those hating on Eddie Cue to shut up ;)

    Eddy Cue is Apple's senior vice president of Internet Software and Services, reporting to CEO Tim Cook.
     
  10. Glassed Silver macrumors 68020

    Glassed Silver

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    This just in: People being forced to replace apps that otherwise would be perfectly fine generates revenue plus for store and platform operator.

    News at 11.

    Glassed Silver:ios
     
  11. zzebi macrumors member

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    Jan 12, 2008
    #11
    This is remarkable.

    Apple's Services Devision alone, which accounts for 16% of revenues, is 1/3 the size of Google, and it's growing 10% faster than Google.

    Yet, Google's market valuation is only about 20% behind Apple. This means that Wall St thinks the rest of Apple (including iPhone, iPad, Mac, wearables, etc) is garbage.
     

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