Double-Digit Services Growth
Apple continues its journey toward becoming a more services-focused company, and we see more indications of that with every quarterly earnings call.
This year saw a massive jump in services revenue over the year-ago quarter, bringing in $13.2 billion in revenue, an increase of almost $2 billion over Q3 2019, setting another record in this category, which accounted for 22% of all of Apple’s revenue during the quarter, and half as much as the iPhone generated.
Appel doesn’t offer specific revenue numbers for each services, however, during the call Tim Cook noted that the bulk of this growth came from the App Store, Apple Music, Apple TV+, and iCloud services. Although revenue from AppleCare and advertising was reportedly down, the rest more than made up for it.
Cook also shared that this means Apple has now achieved the goal it set in 2016 of doubling its services revenue by the end of 2020 — six months ahead of target.