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Apple's services business hits new revenue record of $17.5 billion

Apple One Icons Apple
Apple One Icons Apple (Image credit: Apple)

What you need to know

  • Apple's services business now stands at a record $17.5 billion.
  • The company now commands 700 million paid subscriptions across its services.

Apple's services business continues to play a more critical role in the growth of the company.

During the company's Q3 earnings call, Apple CFO Luca Maestri announced that the company's services business reached a new all-time revenue record of $17.5 billion. The CFO said that the performance was due to three things: growth of the installed base, the number of transacting and paid accounts on the company's digital content stores, and the growth of paid subscriptions.

Maestri noted that Apple has passed 700 million paid subscriptions, up by more than 150 million when compared to last year.

Turning to services, as I mentioned, we reached an all-time revenue record of 17.5 billion with all time records for cloud services, music, video, advertising, and payments services, and June quarter records for the App Store and Apple Care. Our new service offerings, Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+, as well as the Apple One bundle, continue to scale across user's content and features, and are contributing to overall services growth.The key drivers for our services business all continue to move in the right direction. First, our installed base of devices reached an all time high across each geographic segment. Second, the number of both transacting and paid accounts on our digital content stores reached a new all time high during the June quarter in each geographic segment, and paid accounts increased double digits. Third, paid subscriptions continue to show strong growth. We now have more than 700 million paid subscriptions across the services on our platform, which is up more than 150 million from last year and nearly four times the number of paid subscriptions we had only four years ago.And finally, we're adding new services that we think our customers will love, while also continuing to improve the breadth and quality of our current services offerings. For example, during WWDC in June, we previewed our new iCloud+, an Apple wallet features, which we believe will create a more secure and differentiated customer experience.

Earlier on the call, Apple CEO Tim Cook called out the 35 Emmy nominations that Apple TV+ received this year. He specifically highlighted Ted Lasso, Mythic Quest, and the upcoming award-winning film Coda. Apple's services business also includes Apple Music, Apple Podcasts, Apple News+, Apple Fitness+, and iCloud.

Turning to services, which set a new all time revenue record as we continue to roll out innovative new features and programing. We're proud to be the recipients of 35 Emmy nominations this year, which speaks to the quality of our programing and an enthusiastic reception from customers and critics alike. Apple TV plus users are loving series like Mythic Quest and anticipating groundbreaking films like Coda, which premieres next month.And of course, Ted Lasso kicked off season two just last week and continues to win over viewers with its heartwarming message about the power of community, compassion and hope. We also introduced Apple Podcast Subscriptions, a global marketplace for users to discover exclusive content and support their favorite creators. And we launched Spatial Audio for Apple Music, a cinematic listening experience that promises to change how music fans listen, and musicians create even more immersive, layered, and beautiful songs.

Earlier today, Apple hosted its Q3 earnings call and announced a June quarter revenue record of $81.4 billion, an increase of nearly $22 billion or 36 percent from a just year ago. If you want to learn more about what was said during the earnings call, check out the call transcript.

Joe Wituschek
Joe Wituschek

Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.