Apple services revenue hits a new quarterly record of $12.5bn


Apple reported its financial results for its fiscal fourth quarter yesterday (in calendar terms, the third quarter of 2019).

The company’s revenues grew by 1.8% year-on-year to $64.04bn, helping Apple to turn a net profit of $13.69bn for the quarter. Services, the category that includes Apple Music, was once again the star of the show: those revenues grew by 18% to $12.51bn, setting a new quarterly record for the company.

Specifics for Apple Music were not broken out, although CEO Tim Cook noted in Apple’s earnings call that like the App Store, Apple Music set a new all-time high for revenue last quarter – not exactly a surprise, given the service’s growth. Cook notably chose not to clap back at Spotify’s claim earlier in the week that the latter is “adding roughly twice as many subscribers per month” as Apple Music – with no new figure for the latter’s subscribers, an independent comparison will have to wait a bit longer.

“We are well on our way to accomplishing our goal of doubling our fiscal year ’16 Services revenue during 2020,” said Cook. In separate news, it appears Apple will be bundling its new Apple TV+ video-streaming service into its existing $4.99-a-month Apple Music student subscription, for no extra cost.

Stuart Dredge

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