Apple Services Revenue Hits Record $19.8 Billion in Q2, Hits 825 Million Paid Subscriptions

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In the middle of a record second fiscal quarter, Apple also posted record services revenue up 17% year-over-year to $19.8 billion. The category – which includes companies like the App Store, Apple TV+, Apple Music, cloud services and others – also grew to 825 million paid subscriptions on Apple’s platform.

That number has increased by more than 165 million in the past 12 months alone, Apple said.

The company highlighted some of its recent achievements in the services category, including Apple TV+ becoming the first streaming service to win a Best Picture Oscar, for its film “Coda.” Apple also noted that its Apple TV+ shows have won over 240 awards and over 960 nominations to date.

The streaming service recently added live sports content with the addition of Friday Night Baseball, which launched earlier this month, along with other new titles.

In addition to setting an all-time revenue record in the services category, Apple set all-time records for the App Store, Apple Music, Apple Care and cloud services, he said. Meanwhile, its video advertising and payment services set records for the March quarter.

Over the past 12 months, Apple said it generated $75 billion in services revenue.

“These impressive results reflect the impact of our continued investments in improving and expanding our service portfolio and the positive momentum we are seeing on many fronts,” noted Luca Maestri, Apple’s chief financial officer.

He also attributed the growth to other factors, including Apple’s growing device install base, which also hit an all-time high in every geographic segment and every major product category. In addition, Apple customers are increasingly using the services offered by Apple.

“We have more transaction accounts, more paid accounts, more accounts with subscriptions — the absolute number of paid subscriptions on our platform is quite impressive: 825 million. That’s an increase of 165 million over of the last 12 months alone, so you can even say that this is excellent growth,” said Maestri.

The company has also added new services over the past few years and plans to “add new services and features,” he hinted.

While the majority of current Apple services are aimed at consumers, Apple said it sees the company as a great opportunity for the future, following the recent launch of Apple Business Essentials, which is aimed more at the SMB market.

“But we know that the business, in general, as a market, is a very interesting market for us, and we put a lot of effort and focus into it. And we think we have very good opportunities for growth.” , Maestri said.

However, Apple has warned that while it expects Services to continue to grow in the double digits over the coming year, it expects Services growth to slow from its March quarter performance. due to a variety of factors, including supply chain constraints affecting Apple’s ability to ship sufficient product. to meet customer demand, exchange rates and the suspension of all sales to Russia, which took place in March.

The company said the growth rate for the June quarter is expected to be lower than the 17% reported in March.

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