Apple Hits $10B in Revenue From Services Like iTunes

The growth was spurred by not just services but also Apple's iPhone division, which saw a 29 percent increase in revenue to $37.2 billion. The revenue gains came despite a lower-than-expected 46.9 million iPhones sold during the period. Investors had been looking for sales of 48.4 million. Though iPhone unit sales remained flat, the devices that did sell were higher priced versions that retail for $1,000 or more.

Apple said it will stop reporting unit sales of its devices starting next quarter, focusing instead on revenue. The move will make it harder to determine how Apple products are selling, since increased prices can help boost revenue if even unit sales are down.

CEO Tim Cook told investors during the company's quarterly earnings call services divisions like iTunes and Apple Music hit revenue records during the period. The division is on track to reach its goal if doubling 2016 revenue by 2020.

Apple shares, which closed the day up over 1 percent to $222.22, were trading down more than 4 percent after-hours on measured forecasts for the current quarter, Apple's fiscal first quarter. In what is normally a busy sales period because of the holidays, Apple is expecting revenue between $89 billion and $93 billion, which has likely disappointed some investors.

This article was originally published by The Hollywood Reporter.