A 12 percent year-over-year gain in services revenue was reported by Apple in its third-quarter earnings report on Thursday, although it fell just shy of Wall Street expectations of $19.7 billion.
The internet giant’s third-quarter services revenue was lower than the record-breaking $19.8 billion it recorded during the previous quarter and was lower than the growth of 27% it announced during the same time period in 2017.
It also increased to 860 million paid memberships on Apple’s platform, up from the 825 million it reported in its prior quarter. The category includes companies like the App Store, Apple TV+, Apple Music, cloud services, and others.
According to Apple, this number has increased by more than 160 million just in the past year.
Apple CFO Luca Maestri stated on the company’s earnings call that “the record level of success of our services portfolio during the June quarter underscores the strength of our ecosystem on many fronts.”
“First, across each major product category and geographic region, our install base has increased steadily and has reached an all-time high.
Our transacting accounts, paying accounts, and accounts with paid subscriptions all experienced an increase in customer engagement with our services during the quarter.
All had double-digit yearly increase, and premium subscriptions displayed particularly robust growth.
Additionally, according to Maestri, the business achieved all-time highs for Apple Music, Apple Care, cloud services, and payment services.
In the services category, the business highlighted a few of its most recent successes. Apple CEO Tim Cook noted that Apple TV+ has already garnered 250 awards and 1,110 award nominations, and that number is still growing. Cook also mentioned the 52 Emmy nominations that Apple TV+ received this month for 13 different titles, including “Severance” and “Ted Lasso.”
Regarding the rest of Apple’s third-quarter financials, iPhone revenue increased somewhat from $39.5 billion to $40.7 billion, or 3%, compared to the same period in 2021. Although the company’s total performance exceeded Wall Street estimates, other areas did less well. For the quarter, sales of the Mac, iPad, and combined wearables/home category all declined.