Apple Generates Record Quarterly Services Revenue of $14.5 Billion

Apple Oct. 29 reported record quarterly revenue for its services segment, which includes iTunes, the App Store, Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade and Apple News+, among others. The segment generated $14.5 billion in revenue for the fourth quarter, ended Sept. 26, compared to $12.5 billion in the previous-year period. For the fiscal year, services revenue increased 16% to $53.7 billion from $46.2 billion last year.

The Menlo Park, Calif.-based company posted record September quarter revenue of $64.7 billion, up 1% from $64 billion in the previous-year period. International sales accounted for 59% of the quarter’s revenue.

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“Despite the ongoing impacts of COVID-19, Apple is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive,” CEO Tim Cook said in a statement.

CFO Luca Maestri said the quarter capped off a “remarkable” fiscal year in which Apple set all-time records for revenue, earnings per share, and free cash flow, in spite of a challenging macro environment.

“Our sales results … drove our active installed base of devices to an all-time high in all of our major product categories,” Maestri said.

The results glossed over the fact sales of iPhones fell almost 21% in the quarter to $26.4 billion, from $33.3 billion a year ago.  For the year, iPhones sales declined 3.3% to $137.8 billion, from $142.4 billion a year ago.

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