Apple’s services continue to rake in cash

Despite a downturn in smartphone-related revenue, Apple’s various services continue to earn mountains of cash.

Apple pulled in slightly more than $31 billion USD (roughly $41 billion CAD) in iPhone revenue over the last three months compared to $37.6 billion during the same fiscal quarter last year. In total, the tech giant earning $58 billion (roughly $77 billion CAD) in revenue, with the company surpassing analyst expectations across the board.

Given the direction the company’s earnings have been headed for the last few quarters, it makes sense that the company is preparing to launch Apple TV+, its original content platform and Apple Arcade, a mobile game subscription service, in the coming months.

These new service offerings are set to join iCloud, Apple Music and Apple’s recently launched News+ subscription platform.  During the earnings call, Apple CEO Tim Cook said that the company set “an all-time record” in service’s earnings, with the company pulling in $11.5 billion USD (about $15.4 billion CAD) this quarter.

As expected, Cook doesn’t mention the iPhone much in the earnings report. That said, he did state that the iPad experienced a “blockbuster quarter,” with the tablet earning just over $4.87 billion ($6.5 billion CAD). Mac sales, on the other hand, dipped slightly when compared to last year, coming to $5.51 billion ($7.3 billion CAD).

“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record,” said Tim Cook, Apple’s CEO, in a press statement.

“We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services. We’re looking forward to sharing more with developers and customers at Apple’s 30th annual Worldwide Developers Conference in June.”

For the third quarter of 2019 Apple is predicting revenue between $52.5 billion ($69 billion CAD and $54.5 billion ($73 billion CAD).

It will be interesting to see how Apple’s upcoming services shift the company’s revenue as it transforms into a tech giant more focused on subscription platforms than the iPhone.

Source: Apple