Apple has announced its revenue for the fourth fiscal of 2017 that ends this September 30. We get to see a few interesting trends as far as earnings are concerned. Apple has posted a quarterly revenue of $52.6 billion which translates to a 12 percent YoY growth.
The Surge in Services Revenue
Apple has achieved a massive growth in the revenue for its services. The total revenue from the services division has come to $8.85 billion which translates to a staggering 34 percent increase from the last year. The services revenue includes the earning from Apple services like the iCloud, App Store and also the Apple Care plans. Interestingly the revenue from the services department has now exceeded Apple’s revenue from iPad and “other products” division which includes accessories like AirPods, Apple TV, Apple Watch, iPod TOuch and also the Beat products.
Apple services have been the second biggest source of revenue for the company and are trailing the revenue from iPhone sales. Apple claims that the app store and the Apple Music have witnessed a remarkable 75 percent subscriber growth. According to the company ever since they launched the redesigned app store for iOS 11 the users have been spending more time on the App Store and the increase in time has also translated into a surge in downloads. It is worth mentioning that Apple had recently announced the Apple Pay in countries like Denmark, Finland, Sweden, and UAE.
Skyhigh iPhone, iPad and Mac Sales
The growth in services revenue is further accompanied by growth in iPhone, iPad and Mac Sales. The iPhone 8 and the 8 Plus have been the most popular models till date and the bigger iPhone 8 Plus sold the most units as far as “Plus” variants are concerned. We can only guess that the revenue will be much higher once Apple starts serving the huge iPhone X demand. Below are some of the highlights,
- iPhone 8 and the iPhone 8 Plus have been the most popular iPhone models till date
- The Mac has had its best year in terms of sale
- Apple Watch sale has surged by 50 percent and is currently the best selling smartwatch in the world.
- Apple’s quarter ends with $268 billion in cash and marketable securities
- Expects an unprecedented spike in sales this holiday season
- Big bet on CoreMS and machine learning in iOS 11
The AR and VR Push?
Apple had us all excited when the company announced a new Augmented Reality engine for the iOS 11. The development kit called the “ARKit” is already helping app developers ready apps powered by AR. In fact, we have already curated a list of the best AR apps available for iOS 11, check it out here. Apple CEO, Tim Cook, has been bullish on the AR and VR and expects the same to rake in more profits in the upcoming quarters. Tim believes that it is the user experience that will ultimately decide the revenue and the profits.
This is what Tim said to an analyst, “In terms of monetization of AR/VR, we focus first and foremost on customer experience.” He further added that “I view AR as profound. Not today, not the app you’ll see on the App Store today, but what it will be, what it can be, I think it’s profound, and I think Apple is in a really unique position to lead in this area.”