Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, and more, has become a significant revenue driver for Apple.

In the first fiscal quarter of 2019, Apple's services segment brought in $12.7 billion, up from $10.9 billion in the year-ago quarter, marking growth of 17 percent. Every geographic saw double-digit growth, setting new records.

appleservices
Apple across 2019 focused heavily on services, introducing Apple News+, ‌Apple TV‌+, ‌Apple Arcade‌, and Apple Card, all of which have contributed to the company's services growth. Cook shared some details on some of Apple's most popular services.

The ‌App Store‌ set a new December revenue record and hit $386 million in sales on New Year's Day, and ‌Apple News‌ has more than 100 million active users in the U.S., Australia, UK, and Canada. ‌Apple Pay‌ revenue and transactions more than doubled, exceeding 15 billion transactions. Apple plans to expand ‌Apple Pay‌ transit features to allow customers in Shenzhen and Guangzhou to pay for trips using a tap of the iPhone or the Apple Watch.

Cook said that ‌Apple TV‌+ is off to a "rousing start" and is "very strong" for people getting it in a bundle and people who have not purchased a new Apple device. ‌Apple Arcade‌ is also off to a strong start.

Cook also told Reuters that Apple expects to surpass its goal of 500 million subscribers for 2020 during current the quarter ending in March, well ahead of schedule. Apple is now aiming to hit 600 million subscribers by the end of the calendar year.

Top Rated Comments

Will.O.Bie Avatar
66 months ago
I hope they consider bundling some of these services for a decent price.
Score: 5 Votes (Like | Disagree)
44267547 Avatar
66 months ago
12.7 billion in the 1st Qt? That’s insane. Think about that number for a minute, and then think about how services has been on the rise for Apple for the last 36 months. I don’t even think it’s about hardware sales anymore as much as it is now services are equally just as important.
Score: 3 Votes (Like | Disagree)
Wanted797 Avatar
66 months ago

12.7 billion in the 1st Qt? That’s insane. Think about that number for a minute, and then think about how services has been on the rise for Apple for the last 36 months. I don’t even think it’s about hardware sales anymore as much as it is now services are equally just as important.
Yep. Apple saw the way things where going and like that adapted their business model to suit.
Score: 2 Votes (Like | Disagree)
FightTheFuture Avatar
66 months ago

...in contrast to most other services for which he mentioned specific growth numbers (users or revenue). Adding new content actually means increasing expenditure.
So yeah, I too take this as a sign that this particular service isn't doing too great.
News+ is a hard sell. Even harder than AppleCare. But not many services are like it, so they just have to wait and see if it matures.
Score: 2 Votes (Like | Disagree)
dumastudetto Avatar
66 months ago
This is still only the beginning for services revenue.

Apple is basically untouchable now. Nobody can compete.
Score: 2 Votes (Like | Disagree)
AppleHealth Avatar
66 months ago
Interesting to see him not mention News+, I do wonder how that is doing. I’m currently using it (free month) and while I like magazines, I just can’t get into it. I also really hate the PDF’s being uploaded on there... not good.

Apple TV+ though has been great, really looking forward to the rest of the year! I will defo stayed subscribed after my first year.
Score: 2 Votes (Like | Disagree)

Popular Stories

iPhone 17 Roundup Feature 2

iPhone Design to Change 'Significantly' This Year

Monday February 17, 2025 7:09 am PST by
Apple is set to "significantly change" the iPhone's design language later this year, according to a Weibo leaker. In a new post, the user known "Digital Chat Station" said that the iPhone's design is "starting to change significantly" this year. The "iPhone 17 Air" reportedly features a "horizontal, bar-shaped" design on the rear, likely referring to an elongated camera bump. On the other...
Apple iPhone 16e Feature

Apple Announces iPhone 16e With A18 Chip and Apple Intelligence, Pricing Starts at $599

Wednesday February 19, 2025 8:02 am PST by
Apple today introduced the iPhone 16e, its newest entry-level smartphone. The device succeeds the third-generation iPhone SE, which has now been discontinued. The iPhone 16e features a larger 6.1-inch OLED display, up from a 4.7-inch LCD on the iPhone SE. The display has a notch for Face ID, and this means that Apple no longer sells any iPhones with a Touch ID fingerprint button, marking the ...
iOS 18

iOS 18.4 Coming Next Week With These New Features for Your iPhone

Friday February 14, 2025 6:18 am PST by
The first iOS 18.4 beta for iPhones should be just around the corner, and the update is expected to include many new features and changes. Bloomberg's Mark Gurman expects the iOS 18.4 beta to be released by next week. Below, we outline what to expect from iOS 18.4 so far. Apple Intelligence for Siri Siri is expected to get several enhancements powered by Apple Intelligence on iOS...
iphone 17 pro asherdipps

iPhone 17 Pro Models Rumored to Feature Aluminum Frame Instead of Titanium Frame

Tuesday February 18, 2025 12:02 pm PST by
Over the years, Apple has switched from an aluminum frame to a stainless steel frame to a titanium frame for its highest-end iPhones. And now, it has been rumored that Apple will go back to using aluminum for three out of four iPhone 17 models. In an investor note with research firm GF Securities, obtained by MacRumors this week, Apple supply chain analyst Jeff Pu said the iPhone 17, iPhone...
apple launch feb 2025

Tim Cook Teases an 'Apple Launch' Next Wednesday

Thursday February 13, 2025 8:07 am PST by
In a social media post today, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19. "Get ready to meet the newest member of the family," he said, with an #AppleLaunch hashtag. The post includes a short video with an animated Apple logo inside a circle. Cook did not provide an exact time for the launch, or share any other specific details, so...
Apple 2025 Thumb 1

Two of Apple's Oldest Products Are Finally Getting Updated This Year

Friday February 14, 2025 6:03 am PST by
Apple released the HomePod mini in November 2020, followed by the AirTag in May 2021, and both still remain first-generation products. Fortunately, rumors suggest that both the HomePod mini and the AirTag will finally be updated at some point this year. Below, we recap rumors about the HomePod mini 2 and AirTag 2. HomePod mini 2 In January 2025, Bloomberg's Mark Gurman said Apple is ...
macbook air blue

Gurman: M4 MacBook Air Models to Launch by March 'At the Latest'

Monday February 17, 2025 2:30 am PST by
Apple will begin selling new MacBook Air models featuring its latest M4 chip by March "at the latest," mirroring the time frame of the M3 MacBook Air launch last year, according to Bloomberg's Mark Gurman. Apple last updated the MacBook Air line in March 2024. Gurman's comments appeared in his latest Power On newsletter, suggesting the reporter is no further forward on learning the exact...
iPhone 17 Air Front Page Tech 2

'iPhone 17 Air' With Ultra-Thin Design Allegedly Revealed in New Video

Monday February 17, 2025 6:53 pm PST by
YouTube channel Front Page Tech today revealed the alleged design of Apple's widely-rumored "iPhone 17 Air" model, set to launch later this year. "iPhone 17 Air" render created by @zellzoi for Front Page Tech In a video uploaded today, Front Page Tech shared renders depicting what it believes is likely the final design of the "iPhone 17 Air." The device is expected to feature an ultra-thin...