Apple Earnings: Services Division, Which Includes Apple Music & iTunes, Sets Quarterly Revenue Record
Apple's total revenue grew seven percent year-over-year, with its Services division -- which includes Apple Music and iTunes, among others -- set a quarterly record at $7.266 billion.
Apple has released its earnings for its 2017 fiscal third quarter today (Aug. 1), with a conference call to follow. But first, the topline numbers: revenue for Apple Corp. in the quarter ended July 1 grew seven percent year-over-year to $45.2 billion, up from $42.4 billion in the same period in 2016, according to the company’s report.
Across its five product sectors — iPhone, iPad, Mac, Services (which includes Apple Music, iTunes and the App Store as well as Apple Pay and AppleCare) and Other Products (which includes Apple Watch, Apple TV and other products) — all increased revenue over the same period last year. Other Products (up 23 percent) and Services (up 22 percent) led the way in percent revenue growth.
While Apple doesn’t break out specifics within their Services division, which would provide a deeper look into how its music businesses are doing financially, CEO Tim Cook pointed out in a statement that the Services division delivered an all-time quarterly record, with revenue up to $7.266 billion, besting both the $5.98 billion in revenue from the same quarter last year, and even up three percent over the $7.04 billion it posted in the prior quarter.
“With revenue up seven percent year-over-year, we’re happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue,” Cook said. Added Apple CFO Luca Maestri, “We reported unit and revenue growth in all our product categories in the June quarter, driving 17 percent growth in earnings per share. We also returned $11.7 billion to investors during the quarter, bringing cumulative capital returns under our program to almost $223 billion.”
Other quick highlights included that 61 percent of total revenue came from international sales, while the number of iPhones sold increased two percent year-over-year (up three percent in revenue) and Mac sales were up one percent (up seven percent in revenue).