Despite a potential decline in iPhone and other device sales, Apple’s services division, encompassing the App Store, iCloud, Music, and other subscriptions, continues to attract significant interest.
According to reports from Apple last Thursday, its services business achieved an all-time high revenue of $26.3 billion for the quarter ending December 28, marking a 14% year-over-year increase.
“Services generated nearly $100 billion in revenue over the past year,” stated CEO Tim Cook during Thursday’s earnings call, as reported by TechCrunch. Additionally, Apple revealed it now exceeds 1 billion subscriptions across its services, including third-party apps on the App Store.
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Apple highlighted that customer engagement with its services, including transactional and paid accounts, hit record highs, showcasing double-digit growth annually.
This trend may also be influenced by U.S. government regulations. While investors did not directly inquire about the Trump administration’s impact on Apple’s earnings, questions arose regarding whether new regulatory changes could be beneficial, specifically questioning if a “more balanced regulatory environment” could reverse previous challenges absorbed by Apple in its performance.
Apple’s CFO, Kevan Parekh, skillfully sidestepped these questions, instead reiterating the positive figures for the Services division and emphasizing increased customer engagement across all service offerings, customer bases, and geographic regions. CEO Tim Cook also refrained from addressing the matter.
Nevertheless, Apple’s growth remains robust year-over-year, driven largely by its subscription services. Most Apple users subscribe to at least one service on their devices or accounts, such as my monthly iCloud+ subscription.
Via: Apple, TechCrunch
