Apple Q3 Services Revenue Leaps 33%

Apple July 27 reported third-quarter (ended June 26) services revenue of $17.5 billion, up 33% from revenue of $13.2 billion during the previous-year period. Services revenue includes sales of movies and TV shows on iTunes, the App Store, Mac App Store, Apple Music, Apple Pay, Apple TV+, Apple Arcade and Apple News+, among others.

Services has increasingly become a lucrative business segment for Apple. The unit generated $12.2 billion in operating income, with an operating gross margin of nearly 70%.

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” Luca Maestri, Apple’s CFO, said in a statement.

Other Apple business units include $39.5 billion in sales of iPhones, up about 50% from revenue of $26.4 billion in the previous-year period. Mac revenue topped $8.2 billion, up 16.4% from $7 billion a year ago. Sales of iPad tablets topped $7.4 billion, from $6.5 billion a year ago. Wearables and accessories (i.e. Apple Watch) exceeded $8.7 billion, up 31% from $6.5 billion the previous year.

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