During Apple’s fiscal results of the second quarter of 2019, we discovered that the apple company had obtained a record of economic income in the services category. And these have grown considerably for some years.
In fact, after the third quarter financial results conference, Apple has made it known that the service category contributes nothing more or nothing less than 21% of Apple’s total revenue. The category of services is now larger than it was 10 years ago, in 2009.
21% of the economic income related to the category of services (Apple Music, Apple Pay, App Store, iCloud, etc.) marks a historic milestone for the company. This is the largest percentage of that category in the entire history of the company.
The economic income of Apple services
Although not everything is good news for the company of the bitten apple, and it is that according to the data of the financial results the sales of the iPhone are below 50% of the total income of Apple. And this is very rare, since it has always been above that figure, or at least since 2012.
iPhone sales are no longer what they were. That’s clear. Who knows if the fault is the continuous design, the lack of innovation, the fluctuation of the market or that, simply, year after year users have tired of renewing our smartphones.
Be that as it may, Apple services are in luck. As you can see in the statistical graph that we have incorporated into the article, Apple’s service category has been growing gradually and exponentially (purple) in a brutal way over the last 10 years.
Of course, the category of other products (in yellow) has also been increasing revenues for the company of the bitten apple over the past few years. But this is something logical, normal and natural since Apple has been launching all kinds of new products such as Apple Watch or HomePod. And you will see how this category grows again from here to a couple of years because the Cupertino firm plans to market augmented reality and virtual reality glasses and even an autonomous electric car between 2020 and 2025.
Apple services and its excellently devised ecosystem
There is no doubt that the company of the bitten apple has had great success after the launch of the vast majority of its services. From iCloud to Apple Music, through the App Store, Apple Pay, Apple News, iTunes …
But the efficiency and excellence of these services, as well as the advantages they provide to consumers, would not be such if it were not for Apple’s ecosystem. An ecosystem specially designed for users to be sure that Apple products work much better and offer more comfort if they are accompanied by other products and, of course, company services.
But it doesn’t end here, of course not. Apple knows that its services bring great economic benefits to its coffers, and therefore have planned the launch of new ambitious and revolutionary services. We talk about Apple Arcade, Apple Card, Apple News + and Apple TV +. All these services will be available from this year.
Apple Arcade is a video game subscription platform that will provide more than 100 exclusive games to players and will be available on Apple TV, iPhone and iPad. Apple Card is the company’s new credit card in association with Goldman Sachs. As for Apple News +, it is an additional subscription service to Apple News about the news. And finally, Apple TV + is an Apple film platform that will bring all kinds of content such as series, documentaries, and movies with great actors, actresses and film directors. What do you think about Apple services and their revenue?