Apple's services category, which includes the App Store, Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, Apple News+, Apple Fitness, and more, saw record growth during the second fiscal quarter of 2021 (first calendar quarter).
According to Apple's earnings report, the services segment brought in $16.9 billion, up 27 percent from the $13.4 billion in revenue services earned in the year-ago quarter. Apple says that new services records were set in each geographic segment.
Apple saw all-time revenue records for the App Store, cloud services, apple Music, payments services, and more. Apple TV+, Apple Arcade, Apple Fitness+, Apple News+, Apple Card, and Apple One are all "continuing to scale across users" and are contributing to overall growth.
Apple saw 40 million paid subscriptions added during the quarter, reaching a total of 660 million paid subscriptions across all services, which is up 145 million from the year-ago quarter.
During the call, Apple CEO Tim Cook highlighted Apple's most recent service announcements, Apple Card Family and podcast subscriptions, both of which are set to launch in the near future.
Top Rated Comments
Media/Analysts/Critics: Apple is a hardware company. They don’t get services.
Tim Cook in 2021: Apple is a hardware + software + services company.
Media/Analysts/Critics: Apple is a services company. They don‘t care about hardware anymore.
It‘s astonishing how many people still don’t understand that Apple is a design company focused on user experience, which is the intersection of hardware, software, and services. This is why their products are more than the sum of their parts, and why they’re dominating all 3 areas (as measured by revenue, profit, marketshare, customer satisfaction, etc.)