390m paid subs drive Apple quarterly service revenues to $11.5bn


Apple doesn’t report iPhone unit sales any more, although research firms are guessing: IDC thinks that iPhone shipments dropped by 30.2% year-on-year to 36.4m units in the first quarter of 2019 (Apple’s fiscal Q2). In Apple’s quarterly financials yesterday, the company did say that its revenue from iPhone sales dropped by 17.3% to $31.05bn though.

It’s thus no wonder Apple is talking a lot more about its services division, which includes Apple Music as well as the App Store, cloud services, Apple Pay and AppleCare – all of which saw “double-digit revenue growth” last quarter. “It was our best quarter ever with $11.5 billion in revenue [for services overall], an increase of 16% from last year,” chief financial officer Luca Maestri told analysts in Apple’s earnings call. “Services accounted for 20% of our March quarter revenue and about one-third of our gross profit dollars.”

Apple didn’t reveal any updates on how many subscribers Apple Music has: 50 million (from the end of January 2019) is its last milestone. Maestri did talk about total paid subscribers across all of Apple’s services: there are now 390 million, compared to 270 million a year ago. “We expect the number of paid subscriptions to surpass 0.5 billion during 2020,” said Maestri.

Stuart Dredge

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