APPLE SERVICES HITS A RECORD

Apple’s services unit, which includes Apple Music and iTunes, hit an all-time revenue record of $11.5b in the quarter ended 6/29 as the company reported quarterly revenue of $53.8b, a 1% rise over 2018.

The spike in Services revenue was 13% over 2018 and while no details were given, Apple CEO Tim Cook said in a call with investors and analysts, music revenue hit an all-time record.

The division remains on track to double 2016 revenue by 2020, Cook said.

“This was our biggest June quarter ever — driven by all-time record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends,” Cook said.

Services now comprises 36% of gross margin dollars, a promising stat as Apple looks for offerings to make up for declining iPhone sales.

Cook said the company’s fiscal Q3 was a “blowout quarter for wearables” with year-to-year. growth of over 50%; he said the division is now bigger than 60% of the companies in the Fortune 500.

For its fiscal 2019 fourth quarter, the company is predicting revenue between $61b and $64b.