Apple Services revenue hit an all-time high of $20.8 billion

Posted:
in AAPL Investors edited February 2023
Amidst a downturn in most hardware categories, Apple set a new record for its Apple Services business, beating Wall Street's expectations for the segment.

Services continue to grow
Services continue to grow


Apple's first quarter of 2023 ended on December 31, 2022, posting quarterly revenue of $117.2 billion, down 5% year-over-year. However, the Services business continues to do well as the company reported a revenue of $20.77 billion versus the estimated figure of $20.67 billion, which was up 6.4% year-over-year.

Apple reported a revenue of $20.77 billion for Services
Apple reported a revenue of $20.77 billion for Services


"We set an all-time revenue record of $20.8 billion in our Services business, and in spite of a difficult macroeconomic environment and significant supply constraints, we grew total company revenue on a constant currency basis," said Luca Maestri, Apple's CFO. "We generated $34 billion in operating cash flow and returned over $25 billion to shareholders during the quarter while continuing to invest in our long-term growth plans."

Apple's Services business includes iCloud, Apple Music, Apple Pay, Apple Card, and more. Another payment service -- Apple Pay Later -- is currently being beta-tested by employees and will join the company as a new service in the future.

"It will be launching soon," Cook said.

Services was up 6.4% year-over-year
Services was up 6.4% year-over-year


The news on Thursday exceeds expectations from analysts, who believed that Apple was primarily a device producer -- and it is -- but Services is no slouch. As an example, over 900 million people are paying for subscriptions on Apple devices.

The company is seeking to bolster its business in other ways, too, such as an expansion of its advertising business.

Read on AppleInsider

Comments

  • Reply 1 of 7
    eightzeroeightzero Posts: 3,047member
    I'd pay for a subscription for an Apple branded and operated VPN on a new Airport.
    DAalsethramanpfaffAlex_Vwatto_cobra
  • Reply 2 of 7
    cgWerkscgWerks Posts: 2,952member
    Oh my, I fear this will just bolster this “Apple’s Ruin” division in power position within the company.
    watto_cobra
  • Reply 3 of 7
    I would pay for an online version of Time Machine.
    Alex_Vwatto_cobra
  • Reply 4 of 7
    XedXed Posts: 2,489member
    I remember when people freaked out when Tim Cook said that Apple was going to make a big push into services in the coming year. I think that was a good decade ago, if I'm not mistaken.
    FileMakerFellerAlex_Vwatto_cobra
  • Reply 5 of 7
    And the consensus Wall Street estimate was off by ~US$100 million.
    watto_cobra
  • Reply 6 of 7
    cgWerks said:
    Oh my, I fear this will just bolster this “Apple’s Ruin” division in power position within the company.
    What???
    watto_cobra
  • Reply 7 of 7
    cgWerkscgWerks Posts: 2,952member
    cgWerks said:
    Oh my, I fear this will just bolster this “Apple’s Ruin” division in power position within the company.
    What???
    This division is making money, but is eroding many of Apple’s ideals and core strengths. As they have more financial success, they’ll get more power to do their things, even if in opposition to other divisions of the company (this is how big companies work, especially w/o an ideologically principled person at the helm, who focuses on money/efficiency).

    For, example, we’ve seen the OS UIs be increasingly intruded by advertising and content-pushes. Services drive decisions about what apps can do by default vs how much money can be made if they are more limited. This will eventually (if not already) impact the product design directions at the hardware level.
    watto_cobramuthuk_vanalingam
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