Apple Generates Record Quarterly Services Revenue of $14.5 Billion
October 29, 2020
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.