2019 the best year yet for Apple's growing Services business

2019 the best year yet for Apple’s growing Services business


But 2020 could be even better.
Photo: Apple

Apple today marked the close of an historic 2019 for its Services businesses following its biggest ever year so far.

The introduction of Apple Arcade, Apple Card, News +, and TV+ helped ensure Services continued to reach new heights. They also mean Apple goes into 2020 with “incredible momentum.”

Services has become an increasingly important business for Apple amid slowing iPhone growth. So the fact that it’s doing remarkably well is great news for fans and investors.

Apple revealed in its most recent earnings report last October that Q4 Services revenue hit an all-time high of $12.5 billion. And it sounds like the first quarter of 2020 will be another great success.

‘Apple rings in new era of Services’

Apple is yet to confirm just how much Services raked in for the whole of 2019. We’ll have to wait until its next earnings call for the figures. But it today revealed that last year was its biggest yet.

“2019 was the biggest year for Services in Apple’s history. We introduced several exciting new experiences for our customers, all while setting the standard for user privacy and security,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services.

“We begin the new decade with incredible momentum and gratitude to our customers who have shown such enthusiasm for all of our Services, and we continue to celebrate the work of the world’s best creators, storytellers, journalists and developers.”

Apple’s “ongoing focus on the deep integration of hardware, software and services drove all of its platforms to new heights,” last year, the company adds.

Apple’s Services business on the up

The App Store remains a huge part of Apple’s Services business, having earned a staggering $155 billion since its launch in 2008. Customers spent a record $1.42 billion between Christmas Eve and New Year’s Eve alone — a 16% increase over last year.

Another $386 million was spend on New Year’s Day 2020. That’s a 20% increase over last year and a new single-day record, Apple says.

Apple Music, which was updated to support time-synced lyrics with iOS 13 last fall, also plays a big role. The same goes for Apple Arcade, which is set to get more games and expansions every month throughout 2020.

Apple TV+ made history as the first streaming platform to receive multiple Golden Globe nominations in its first year. Apple is yet to reveal how many people have signed up to TV+ since its debut, however.

Apple News now boasts more than 100 million users every month. But again, Apple doesn’t tell us how many people are paying the $9.99 a month subscription fee for News+, which also opens up newspapers and magazines.

More to come in 2020

Podcasts, iCloud, and the Apple TV app — which now boasts over 30 TV channels — and also part of Apple’s Services business. As are Apple Card and Apple Pay, which are now supported by more than 150 stadiums, arenas, and entertainment venues worldwide.

Apple Pay will expand its reach to public transit systems in even more cities this year, including Washington, D.C., Shenzhen, Guangzhou, and Foshan, Apple says. And that’s just some of what’s to come.

“In 2020, Apple will continue to delight customers, collaborate with developers and creators, offering new levels of creativity, choice and innovation across original series and films, podcasts, music, news, games, apps, payments and unique experiences only Apple can deliver,” the company says.


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