One of the constant refrains about Apple in 2019 is its shift towards services — a trend that’s reflected, once again, in its third quarter earnings release.
In fact, the release trumpets the “all-time high” for services revenue in its headline, while a statement from CEO Tim Cook describes this as “our biggest June quarter ever — driven by all-time record revenue from Services,” as well as sales of wearables, iPads, Macs and iPhones.
Apple’s services business includes its subscription products like iCloud, Apple Music and Apple News+. The category will probably grow even more in the coming months with the launch of Apple TV+ and Apple Arcade.
And the latest numbers do indeed beat last quarter’s services revenue (which also set a record), but it’s pretty close — $11.450 billion in Q2 compared to $11.455 billion in Q3. Also worth noting: Analysts had predicted Apple’s services revenue would come in at $11.68 billion, so this is a relative disappointment.
On the other hand, the growth is more impressive when you look at it year-over-year — in the same quarter last year, Apple reported services earning of $10.17 billion, so this is an increase of 13%. It also looks good compared to the direction of product revenue, which is down year-over-year, to $42.35 billion, due in part to falling iPhone sales.
Written by Anthony Ha
This news first appeared on https://techcrunch.com/2019/07/30/apple-q3-services-revenue/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29 under the title “Apple’s services revenue grows 13% year-over-year”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.
