Apple’s services grew by 33% with an all-time high $17.5 billion revenue in Q3 2021

Apple reported a record June quarter with 36 percent Y-o-Y growth, the company hit $81.4 billion in revenue across products and services. In the third quarter of 2021, Apple’s Services saw an all-time high of $17.5 billion in revenue.

The company’s services include App Store, Apple Music, Apple TV+, Apple News, Apple Arcade, Apple Pay, iCloud, Apple Fitness+, Podcasts Subscriptions and Channels, and others. Although the company did not share stats of individual services, CFO Luca Maestri said that key drivers for all services are moving in the right direction.

In Q3 2021, Apple’ Services hit 700 million paid subscribers

At the June quarter 2021 earnings call, Maestri elaborated the three key drivers for Services growth.

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.

He is hopeful that the upcoming new service in iOS 15 will further improve the breadth and quality of the company’s current offerings. He said that “for example, during WWDC in June, we previewed our new iCloud+, an Apple wallet feature, which we believe will create a more secure and differentiated customer experience.”

In iOS 15, the current paid iCloud accounts will switch to a new iCloud+ subscription which includes an iCloud Private Relay privacy feature for safe web browsing. The new feature will hide users’ IP addresses and share the approximate location. Read the complete report here.