Apple also published its latest quarterly financial results last night, with its revenues up 1% year-on-year to $53.81bn, although its net profit fell slightly to just over $10bn (but still: just over $10bn…)

Analysts have been picking over the details: Apple’s iPhone sales fell by 11.8% year-on-year to $25.99bn, but its revenue from services (including Apple Music) grew by 12.6% to $11.46bn, while its ‘wearables, home and accessories’ category (which includes HomePod) grew by 48% to $5.53bn.

CEO Tim Cook was understandably keen to trumpet the services growth. “A new high watermark for services, where we set an all time revenue record,” is how he put it to analysts in Apple’s earnings call. “When you step back and consider wearables and services together – two areas where we have strategically invested in last several years – they now approach the size of a Fortune 50 company.”

Cook added that Apple now has more than 420 million paid subscriptions to its various services. There wasn’t an update from Apple Music’s 60-million-subscribers milestone in late June, but CFO Luca Maestri said that in terms of revenue, Apple Music enjoyed “double-digit growth” year-on-year in the second quarter. Services are now 21% of Apple’s revenues, while iPhone sales have slipped below 50% for the first time in a while.

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Stuart Dredge

Music Ally's Head of Insight

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