Apple Music revenues up 50% in 12 months

Apple Music revenues up 50% in 12 months

Apple has posted record results for Q3 of $9.55 billion (£7.28bn) for its services division, which includes digital music. Services grew 31% year-on-year. 

The company posted overall quarterly revenue of $53.3bn (£40.68bn), an increase of 17% from 2017’s Q3, while profit was up 32% to $11.52bn (£8.79bn). International sales accounted for 60% of the quarter’s revenue.

Apple ended the day’s trading with a market capitalisation above $935.3bn (£713.83bn) and is set to become the first trillion-dollar company in the US.

“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” said Cook. “Our Q3 results were driven by continued strong sales of iPhone, Services, and Wearables, and we are very excited about the products and services in our pipeline.” 

Apple Music is chasing Spotify in the US, though the Swedish streaming giant remains ahead globally on 83 million subscribers. Cook did not give a full update beyond the recent 50m numbers for Apple Music reported in May, though said it was now well above that for subscribers and trials.

“Apple Music grew by over 50% on a year-over-year basis,” Cook said of the streaming service's revenues during the earnings call. Overall, the company has more than 300m users paying for subscriptions of apps from the App Store.

Amazon has also reported strong growth in music subscriptions.

Cook also hinted at big plans for TV content. Apple recently announced a partnership with Oprah Winfrey.

"We hired two highly respected television executives last year, and they have been here now for several months and have been working on a project that we're not really ready to share all the details about it yet," said Cook. "But I couldn't be [more] excited about what's going on there."

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