With a market cap around $3 trillion (give or take a few billion), Apple CEO Tim Cook faced Wall Street investors yesterday on the company’s quarterly earnings call, delivering respectable results that beat street estimates overall.
Apple stock retreated slightly – down 1.5% in after hours trading – largely on news that iPhone sales had slumped 2%. iPhone sales account for 48% of the company’s total hardware sales, which were down 4.4.% overall dragged down by computer and iPad sales, which were fell 7% and 20% respectively.
But Cook touted the company’s growing services division as a particular bright spot. The services unit has tripled its subscribers in the last three years to top 1 billion paid subscriptions this quarter, up from 850 million in the same quarter last year. Financially, the division grew 8.2% to reach $21 billion year over year.
“We are happy to report that we had an all-time revenue record in services during the June quarter, driven by over 1 billion paid subscriptions,” said Cook.
“The subscriptions businesses is very healthy,” Apple CFO Luca Maestri added.
The company doesn’t break down services revenue among its various offerings, so the numbers include revenues from Apple TV Plus, Apple Music and iCloud as well as App Store, Apple Pay and Apple Card.
Teasing out Apple TV Plus’s performance is notoriously difficult, but Cook noted that, hot off 54 Emmy nominations, the streaming service had set a new quarterly record, (whatever that means).
Cook also gave a brief update on the company’s recently announced $3,500 AR/VR headset, Apple Vision Pro, revealing that the company is now shipping units to developers.
“I’m using the product daily,” he added.
