Apple Services Hits Record $15.8 Billion in Quarterly Revenue

Ted Lasso-Jason Sudeikis-Publicity still - H 2020
Apple TV+

'Ted Lasso'

The division houses Apple TV+, Apple Music, Apple Arcade and other subscription products.

Apple's services division hit an all-time revenue high during the final three months of the year.

The group, which accounts for sales from Apple Music, Apple TV+, iCloud, App Store and other software products, had fiscal first quarter revenue of nearly $15.8 billion, up 24 percent from the $12.7 billion it brought in during the same period a year earlier.

The growth in services revenue, a priority for the company in recent years, helped to drive record revenue for Apple, which reported quarterly sales of $111.4 billion. The main driver for the quarter was Apple's new line of iPhones, which brought in $65.6 billion in revenue.

"This quarter for Apple wouldn’t have been possible without the tireless and innovative work of every Apple team member worldwide," said Apple CEO Tim Cook. "We're gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season. We are also focused on how we can help the communities we're a part of build back strongly and equitably, through efforts like our Racial Equity and Justice Initiative as well as our multi-year commitment to invest $350 billion throughout the United States."

Services is Apple's second largest division behind iPhones. The company has prioritized keeping its device owners in its ecosystem by offering them a suite of media apps and other utility software.

Apple launched TV+ in November 2019 with a lineup of original programming that includes The Morning Show starring Reese Witherspoon and Jennifer Aniston, comedy Dickinson Hailee Steinfeld and Ronald D. Moore space drama For All Mankind. The company has offered limited commentary around the performance of the service, which costs $5 per month, during its first year of availability. It offers a year free of Apple TV+ to people who buy a qualifying Apple device. Subscribers who signed up for Apple TV+ at launch have had their free trial extended through July 2021.

TV+ is also available through Apple new subscription bundle, Apple One, which combines memberships for different services including Apple Music, Apple Arcade, Apple News+, Apple Fitness+ and iCloud.

In addition to subscription services for music, entertainment, video games and fitness, the company is said to be exploring a podcast subscription product.

Apple said Wednesday that it has more than 620 million pay subscriptions, up from 140 million during the same period last year. It has an install base of more than 1 billion iPhones.