Apple Posts Record Services Revenue Alongside Strong Hardware Sales

Apple recent run of success shows no signs of stopping after it generated $52.6 billion in revenue over the past three months – a 12 percent increase – and believes the launch of the iPhone X will see that figure rise as high as $87 billion during the Christmas period.

The company shifted 46.7 million iPhones during the period, alongside 10.3 million iPads (an increase of 11 percent) and 5.4 million Macs (up 10 percent).

However alongside strong sales of its products, Apple also recorded a record $8.5 billion in services revenue. This is an increase of 34 percent year-on-year and demonstrates the growing importance of the segment to Apple.

Apple results

Sales of ‘other’ products such as the Apple Watch, accessories and Apple TV rose by 36 percent to $3.2 billion. As ever, the Cupertino-based company does not break this figure down.

CEO Tim Cook was bullish about the results.

“With fantastic new products including iPhone 8 and iPhone 8 Plus, Apple Watch Series 3, and Apple TV 4K joining our product lineup, we’re looking forward to a great holiday season, and with the launch of iPhone X getting underway right now, we couldn’t be more excited as we begin to deliver our vision for the future with this stunning device,” he declared.

Cook’s tenure has seen stable leadership but also accusations that the company has lacked the innovation of the Steve Jobs era.

iPhone updates were evolutionary rather than evolutionary and there were fears of smartphone saturation eating into profits. This creation of the Apple Watch range had limited success in stifling concerns about a lack of innovation.

However sales have continued to rise, while a move into the services and business markets have opened new revenue streams. And with the launch of the iPhone X, there is optimism that the company’s innovative streak, and the fanfare surrounding it, has returned.

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