Apple Services Revenue Hits $22.3B, Another New Record
Written by djfrosty on November 3, 2023
Apple reported a blowout quarterly earnings report, with its serviced division (which includes Apple TV+, Apple Music and other media-related offerings) hitting another new record with $22.3 billion in revenue.
That was up from $19.2 billion a year ago, and from $21.2 billion in its last quarter.
In total, Apple delivered revenues of $89.5 billion in its fiscal Q4, with profits of $23 billion, reflecting strong demand for its iPhone line.
“Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services,” said Tim Cook, Apple’s CEO, in a statement. “We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.”
Apple is seeking to improve its revenues and margins in its services business, raising prices on Apple TV+ and other subscription offerings last month. Apple TV+ now costs $9.99 per month, though it is also included in the Apple One subscription bundle, which includes products like Apple Arcade, Apple News, and extra cloud storage.
“We achieved all time revenue records across App Store, advertising, Apple Care, iCloud, payment services and video, as well as the September quarter revenue record on Apple Music,” Cook added on the earnings call.
As for Apple TV+, Cook touted Martin Scorsese’s new movie Killers of the Flower Moon, and noted the awards that ths ervice has garnered.
“We’re telling impactful stories that inspire imagination and stir the soul,” Cook said. “Making movies that make a difference is also at the heart of Apple TV+, and we were thrilled to produce Martin Scorsese’s Killers of the Flower Moon, a powerful work of cinema that premiered in theaters around the world last month.”
Apple CFO Luca Maestri added on the call that Apple’s services division now has “well more than one billion” subscribers.
Also on the call, Cook confirmed that the company is investing significantly in generative artificial intelligence: “Obviously we have work going on, I’m not going to get into details about what it is because as you know, we don’t we really don’t do that,” Cook said in response to a question from an analyst. “But you can bet that we’re investing, we’re investing quite a bit. We’re going to do it responsibly. And you will see product advancements over time where those technologies are at the heart of them.”
This article was originally published by The Hollywood Reporter.