Apple's services division reports record revenue

Apple's services division reports record revenue

Apple’s services division has posted record quarterly revenue of $8.5 billion (£6.48 billion) for the period ending September 30, an increase of 34% on the same quarter last year. The division includes Apple Music, iTunes and other software.

On an earnings call today, Apple CFO Luca Maestri said subscriptions were up 75% year-on-year. The conversion rate of free trials to paid-up subscriptions has reached its highest level to date, following increased original programming on the digital platform.

The tech giant reported in September that Apple Music had reached 30m subscribers, following growth earlier in the year, though it remains well behind Spotify. Apple Music recently struck a new long-term deal with Warner Music.

In its latest results, the company posted total quarterly revenue of $52.6 billion (£40.1 billion), an increase of 12% on a year ago.

“We’re happy to report a very strong finish to a great fiscal 2017, with record fourth quarter revenue, year-over-year growth for all our product categories, and our best quarter ever for Services,” said Tim Cook, Apple’s CEO. “With fantastic new products including iPhone 8 and iPhone 8 Plus, Apple Watch Series 3, and Apple TV 4K joining our product lineup, we’re looking forward to a great holiday season, and with the launch of iPhone X getting underway right now, we couldn’t be more excited as we begin to deliver our vision for the future with this stunning device.”

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