Apple‘s services segment continues to record healthy gains, increasing 16.3% for the September quarter to reach a record $22.3 billion, while it also reported a 2.8% lift in iPhone sales.
Overall, Apple posted revenue of $89.50 billion (down 1%) and net income of $22.96 billion (up 11%), translating to earnings per share of $1.46, for the quarter ended Sept. 30. That beat Wall Street consensus estimates for $89.28 billion in revenue and EPS of $1.39, per data compiled by Refinitiv.
The company’s services revenue came in nearly $1 billion over analyst forecasts of $21.35 billion. The segment includes the App Store, Apple Pay, Apple Card and subscription services such as Apple TV+, Apple Music, Apple Arcade and iCloud. In August, Apple boasted that it had topped 1 billion paid subscriptions across all apps and services (including those from third parties).
Sales of the company’s flagship iPhone — by far its largest business segment — hit $43.81 billion for the period, a record for a September quarter. The most recent quarter (which is Apple’s fiscal fourth quarter) included only about one week of sales of the iPhone 15, the first models in the smartphone family to eliminate the proprietary Lightning port, which started shipping Sept. 25.
Still, the period marked Apple’s fourth consecutive quarterly decline in total revenue, as Mac sales declined 34% (to $7.61 billion) and iPad sales dropped 10% (to $6.44 billion).
“Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services,” Apple CEO Tim Cook said in prepared remarks. “We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon-neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.”
More to come.
