For the first time in nine quarters, Apple’s Services section raised revenue by more than 20 percent in the first fiscal of 2021. Apple’s services category includes Apple Music, Apple Pay, Apple Arcade, AppleCare, Mac App Store, App Store, Apple TV+, Apple News+, Apple Fitness+, and more.
On the 27th of January, Apple announced its quarterly earnings. The Cupertino tech giant announced Services revenue of $15.8 billion for the last three months of 2020, representing a 24% increase over the same period in 2020.
Apple breaks its services revenue record with $15.8 billion in Q1 2021
The App Store grossed more than $64 billion according to recent reports. That is up from approximately $50 billion in 2019. Apple currently has more than 620 million paying subscribers. The initial goal was to have 600 million by the end of 2020, which the company easily crossed. On the earnings call, CEO Tim Cook said:
The steep integration of hardware, software, and Services have always defined our approach here, and it has delivered an all-time quaterly Services record. This was the first quarter of the Apple One bundle, which brings together many of out great Serives into an easy subscription, and with new content being added to these services every day, we feel very optimistic about where we are headed.
Apple has not confirmed App Store sales number yet, however, the company said earlier this month that $200 billion has been paid out to developers since 2008, a figure that is up by $45 billion from the numbers provided in January of 2020.
Apple CFO Luca Maestri said on the earnings call:
We set all-time records in App Store, cloud services, Music, advertising, AppleCare, and Payment Services. Our Service offerings – Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+, as well as the Apple One bundle, are also contributing to overall Services growth, and continue to add users, content, and features. The key drivers for our Services growth continue to move in the right direction.
The company reported an overall record revenue of $111.4 billion, a 21% increase over the same quarter the year before.