Apple’s services segment, which includes the App Store, Apple Pay, Apple Card, and subscription services like Apple TV+, Apple Music, and Apple Arcade, has reported a healthy gain, increasing by 16.3% in the September quarter to reach a record $22.3 billion. This growth came alongside a 2.8% increase in iPhone sales.
Apple reported overall revenue of $89.50 billion (down 1%) and net income of $22.96 billion (up 11%) for the quarter ending September 30. The results beat Wall Street’s consensus estimates. The services revenue exceeded analyst forecasts by nearly $1 billion, as it continued to benefit from Apple’s ecosystem of apps and services, including its subscription offerings.
Apple had previously announced that it had surpassed 1 billion paid subscriptions across its various services, highlighting the company’s growing strength in the services sector. It’s worth noting that in August, Apple had increased the monthly price of Apple TV+ to $9.99, its second price hike within a year.
The iPhone sales for the period reached a record $43.81 billion, although the quarter included only about one week of sales for the iPhone 15, which started shipping on September 25.
Despite the strong services segment performance and solid iPhone sales, the September quarter marked Apple’s fourth consecutive quarter of year-over-year declines in total revenue, with Mac sales declining by 34% and iPad sales dropping by 10%.
Apple CEO Tim Cook also mentioned on the earnings call that the year-over-year fall in Mac sales was partly due to factory disruptions in the previous quarter. Apple recently introduced a new line of MacBook Pros and a 24-inch iMac, featuring its next-generation M3 family of chips.
Apple continues to evolve its product lineup and ecosystem, with a focus on sustainability and reducing its carbon footprint as part of its larger goals to make all Apple products carbon-neutral by 2030.