Apple's Services Revenue Hits New All-Time High of $12.7 Billion in Q1 2020
Apple’s services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, and more, has become a significant revenue driver for Apple.
In the first fiscal quarter of 2019, Apple’s services segment brought in $12.7 billion, up from $10.9 billion in the year-ago quarter, marking growth of 17 percent. Every geographic saw double-digit growth, setting new records.
Apple across 2019 focused heavily on services, introducing Apple News+, Apple TV+, Apple Arcade, and Apple Card, all of which have contributed to the company’s services growth. Cook shared some details on some of Apple’s most popular services.
The App Store set a new December revenue record and hit $386 million in sales on New Year’s Day, and Apple News has more than 100 million active users in the U.S., Australia, UK, and Canada. Apple Pay revenue and transactions more than doubled, exceeding 15 billion transactions. Apple plans to expand Apple Pay transit features to allow customers in Shenzhen and Guangzhou to pay for trips using a tap of the iPhone or the Apple Watch.
Cook said that Apple TV+ is off to a “rousing start” and is “very strong” for people getting it in a bundle and people who have not purchased a new Apple device. Apple Arcade is also off to a strong start.
Cook also told Reuters that Apple expects to surpass its goal of 500 million subscribers for 2020 during current the quarter ending in March, well ahead of schedule. Apple is now aiming to hit 600 million subscribers by the end of the calendar year.
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