Apple Jan. 27 reported record quarterly revenue for its services segment, which 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. The segment generated $15.8 billion in revenue for the first quarter, ended Dec. 26, 2020, compared with $12.7 billion in the previous-year period.
When factoring in more than $95 billion in product revenue, Menlo Park, Calif.-based Apple generated record $111 billion in revenue, up 21% from revenue of $91.8 million in the previous-year period.
Apple saw green throughout its product categories, with iPhone sales up 17% to $65 billion; Mac sales up 21% to $8.7 billion; iPad revenue up 40% to $8.4 billion; wearables (Apple Watch) up 29.5% to $15.8 billion.
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“We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season,” CEO Tim Cook said in a statement.
Apple Jan. 29 reported first-quarter (ended Dec. 29, 2018) revenue from the iPhone fell 15% to $52 billion from $61.1 billion during the previous-year period.
Apple attributed the lower than anticipated revenue to sluggish sales in China and emerging markets.
“We believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, U.S. dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements,” CEO Tim Cook said in a statement.
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While the downturn forced Apple to revise its fiscal guidance, the company continued to fire on all cylinders in other business segments.
Apple services revenue, which includes sales of digital movies and TV shows on iTunes and Apple TV, generated a record $10.9 billion – up nearly 20% from last year.
The segment, which also includes AppleCare, Apple Pay, licensing and other services, is on track to double in size from 2016 to 2020.
Overall, Apple posted quarterly revenue of $84.3 billion, a decline of 5% from the year-ago quarter, and quarterly earnings per diluted share of $4.18, up 7.5%. International sales accounted for 62% of the quarter’s revenue.