Apple services revenue breaks quarterly record on 33% growth
The Apple services segment grew by 33% to a new record high in the third fiscal quarter of 2021 thanks to continued emphasis on subscriptions like Apple TV+ and Apple Arcade.
Apple Services grow by 33%
Apple shared the earning results for its record breaking third quarter of 2021 on Tuesday. After earning $17.5 billion with services, the segment is now ahead of all segments aside from iPhone thanks to immense growth.
During a quarterly earnings call, CEO Tim Cook and CFO Luca Maestri listed a few data points surrounding the services segment. Specifically, Apple device install base is at an all time high and paid accounts have increased by double digits. This quarter also saw records set for music, video, the App Store, and AppleCare.
The 33% growth is seen as an anomaly, according to Maestri. Apple expects services growth to continue, but at a more average rate starting in the September quarter.
When asked about how the Apple One subscription, Tim Cook said the customer is at the center of that bundle. That it makes enjoying many of Apple's services easy for the customer.
"I'm very pleased with what we are seeing on Apple One," Cook commented. "I think is a great ramp for Services."
Apple services grew 33% to a new record high
Other service segments grew thanks to new user-facing features like paid Apple Podcast subscriptions and Spatial Audio in Apple Music.
Maestri shared that there are over 700 million paid subscribers through the App Store. This is up more than 150 million from 2021 and is four times higher than four years ago.
Apple services continues to grow at a rapid rate
Apple services include Apple Arcade, Apple TV+, Apple Music, AppleCare, and paid iCloud storage subscriptions. Customers can subscribe to many of Apple's services via a single subscription called Apple One.
Read on AppleInsider
Apple Services grow by 33%
Apple shared the earning results for its record breaking third quarter of 2021 on Tuesday. After earning $17.5 billion with services, the segment is now ahead of all segments aside from iPhone thanks to immense growth.
During a quarterly earnings call, CEO Tim Cook and CFO Luca Maestri listed a few data points surrounding the services segment. Specifically, Apple device install base is at an all time high and paid accounts have increased by double digits. This quarter also saw records set for music, video, the App Store, and AppleCare.
The 33% growth is seen as an anomaly, according to Maestri. Apple expects services growth to continue, but at a more average rate starting in the September quarter.
When asked about how the Apple One subscription, Tim Cook said the customer is at the center of that bundle. That it makes enjoying many of Apple's services easy for the customer.
"I'm very pleased with what we are seeing on Apple One," Cook commented. "I think is a great ramp for Services."
Apple services grew 33% to a new record high
Other service segments grew thanks to new user-facing features like paid Apple Podcast subscriptions and Spatial Audio in Apple Music.
Maestri shared that there are over 700 million paid subscribers through the App Store. This is up more than 150 million from 2021 and is four times higher than four years ago.
Apple services continues to grow at a rapid rate
Apple services include Apple Arcade, Apple TV+, Apple Music, AppleCare, and paid iCloud storage subscriptions. Customers can subscribe to many of Apple's services via a single subscription called Apple One.
Read on AppleInsider
Comments
Apple needs to keep hammering this series into the masses’ minds.
And every time new iPhone users are made (like the big number of new iPhone users from this quarter, it’s up to almost 1.1 billion active iPhone users), the service bar just keeps getting taller. This thing could be coming up on 80 billion FTM. JHFC…
Apple Arcade was a faith leap at $5, and now it's rescuing classic mobile games from microtransaction hell. It's finally a pretty good deal for mobile gaming enthusiasts.
iCloud Drive works well enough to kick Dropbox to the curb for non-power users. Backblaze is a good thing to pair with iCloud Drive, to get some restore functionality.
but there will be people who will choose AppleTV+, millions of them. I will be paying for it for at least 3 months next year when the Tom Hanks WW2 series is shown. That series is reported to cost around 200 million. So when you say AppleTV+ is a hobby you should look at that price tag for one series, and Apple’s purchase of the studio space in L.A., and the list of upcoming original productions — There’s around 60 series and shows in the works.
in other words you’re wrong about this being a hobby. This is big revenue potential. Apple is putting in big money to get it. FYI. Apple doesn’t put big money into things if they don’t see big money to be made.