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Step Aside, iPhone: Apple’s Services Revenue Sets New Record At $11.46b

In its announcement yesterday of third-quarter financial results for the period ending June 29 2019, Apple shared record results in its services sector. With a quarterly revenue of $53.8b, up 1% from the same quarter a year ago, Apple CEO Tim Cook declared this the “biggest June quarter ever”.

Apart from services, the company also enjoyed significant growth in the wearables sector, along with “strong performance” in its iPad and Mac businesses, and “significant improvement” in iPhone trends. 

The report also showed that the iPhone is no longer the company’s most important product. For the first time since the iPhone was first unveiled in 2007, the category comprises less than half of total revenue this quarter. That’s not to say that it isn’t an important product – it might be the best selling product in history.

Despite a dip in sales at the start of the year in China as a result of trade tensions with the US, the iPhone’s strong position has fuelled growth in its services business in the country. This also is the result of pricing adjustments to combat unfavourable exchange rates.

The company’s thurst toward services comes in the form of its existing products like Apple Music and iCloud, with recent announcements like the Apple News+ and Apple TV+ services entering the fray.

Apart from services, the company has also seen strong showing in its wearables, home and accessories business. The Apple Watch has proven to be not only the most successful watch, but also the most successful wearable product, period. Unlike the iPhone, which faces a saturated smartphone market, it has much more room for adoption in the near future.

With international sales comprising 59% of this quarter’s revenue, Cook expects “promising” results across all of Apple’s geographic segments. Further hinting at the company’s secretive calendar of launches, he reveals that customers can expect “major launches on all of [Apple’s] platforms” along with “new services and several new products”.

There are rumours of two upcoming iPad models to be released by the end of the year, along with a whole new MacBook model in a 16-inch form factor. The 2019 iPhone XI (or whatever Apple decides to call it) is also highly anticipated and has been “leaked” to oblivion months ahead of its launch.

Ian Ling
Ian is the resident Tech Monkey and Head of Content at VR Zone. His training in Economics and Political Science is at the basis of his love for journalism and storytelling. A photographer by passion, and an audiophile by obsession, Ian is captivated by all forms of tech that makes enthusiasts tick.

One thought on “Step Aside, iPhone: Apple’s Services Revenue Sets New Record At $11.46b

  1. DC Mobile Notary

    This was an interesting read. Technology has impacted our way of living nowadays big time. There are a lot of benefits we can get from there. I think the current technological advancements available are great and very helpful, especially for busy people such as it makes saving money effortlessly and many more. The invention of the technology that you mention in the article is such a great. Thanks for sharing.

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