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.

Apple Ups Q4 ‘Services’ Revenue 27%

Apple services revenue, which includes sales of digital movies and TV shows on iTunes and Apple TV, remains an emerging giant.

The tech company Nov. 1 reported fourth-quarter (ended Sept. 29) services revenue of more than $10 billion, up 27% from services revenue of $7.9 billion during the previous-year period.

The segment, which also includes AppleCare, Apple Pay, licensing and other services, benefited from a one-time adjustment of $640 million due to a change in estimate based on the availability of additional supporting information.

Overall, Apple generated net income of $14.1 billion on revenue of $62.9 billion, compared to income of $10.7 billion and revenue of $52.5 billion last year.

The company sold more than 46.8 million iPhones, 9.7 million iPads and 5.3 million Macs in the quarter.

“We set September quarter revenue records for iPhone and wearables and all-time quarterly records for services and Mac,” CFO Luca Maestri said in a statement.

 

Apple Ups Q3 ‘Services’ Revenue 31%

Apple may be known for the iPhone, iPad Apple Watch, but its digital content business, which includes sales of digital movies and TV shows on iTunes and Apple TV, remains an emerging giant.

The tech company July 31 reported third-quarter (ended June 30) services revenue of more than $9.5 billion, which was up 31% from services revenue of $7.2 billion during the previous-year period.

The segment, which also includes AppleCare, Apple Pay, licensing and other services, benefited from a one-time favorable $236 million resolution of various litigation. The unit is headed by Eddy Cue, SVP, Internet software and services.

Overall, Apple generated net income of $11.5 billion on revenue of $53.2 billion, compared to income of $8.7 billion and revenue of $45.4 billion last year.

The company sold more than 41.3 million iPhones, 11.5 million iPads and 3.7 million Macs in the quarter – the latter down 13% from the previous-year period.