Apple Reports Record Services Earnings, Boosted in part by Apple Music

Apple Services, which includes Apple Music, Apple Pay, and the App Store, reached an all-time revenue high in the fourth fiscal quarter, according to the company’s earnings report released this week.

Apple’s quarterly services revenue climbed to $12.5 billion. The company generated a revenue of $64.0 billion and $3.03 per diluted share, another consecutive increase for Apple, which posted a revenue of $62.9 billion and $2.91 per diluted share in the year-ago quarter.

Out of the company’s 33 percent gross margin, services attributed to for 20 percent of Apple’s revenue mix. Wearables like Apple Watch, Beats and AirPods generated all-time service revenue records, growing 40 percent year-over-year.

“We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services, Wearables and iPad,” said Tim Cook, Apple’s CEO. “With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best lineup of products and services ever, we’re very optimistic about what the holiday quarter has in store.”

“Our strong business performance drove record Q4 EPS of $3.03 and record Q4 operating cash flow of $19.9 billion,” said Luca Maestri, Apple’s CFO. “We also returned over $21 billion to shareholders, including almost $18 billion in share repurchases and $3.5 billion in dividends and equivalents, as we continue on our path to reaching a net cash neutral position over time.”

Source: Apple