Apple makes more revenue through services than major product sales

Apple makes more revenue through services than major product sales

Apple announced today that revenue from its services division came in at $8.5 billion in the past quarter, a 34 percent year over year increase. That revenue is now more than both iPad and Apple’s “other products” division — which includes AirPods and other accessories, Apple TV, Apple Watch, iPod touch, and Beats products — combined. The news was part of the company’s fourth quarter earnings results.

Apple’s services division has been the company’s second strongest source of revenue behind iPhones since April 2016, when it first surpassed Mac sales. Services include Apple Music and iCloud, which the company said saw a 75 percent subscriber growth, though it did not specify just how many users that number entails. Apple also saw more downloads and longer time spent in the App Store following a redesign announced at WWDC and launched with iOS 11 in September. Citing App Annie’s latest estimates, App Store revenues are nearly twice as much as the Google Play Store’s, according to Apple Chief Financial Officer Luca Maestri.

Lastly, Apple’s services growth was also attributed to the expansion of Apple Pay to countries around the world, including Denmark, Finland, Sweden, and the UAE in the last month. Stateside, Apple has worked with retail partners including supermarket chain Safeway to support Apple Pay, with rollouts beginning in October to eventually support all 912 stores in the US.

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