Apple Services Brings in $19.5B Amid Total Earnings Blowout

Apple Services Brings in $19.5B Amid Total Earnings Blowout

BY J. CLARA CHAN | HollywoodReporter.Com

Troy Warren for CNT #Business

The tech giant reported a total of $123.9 billion in revenue, while Wall Street analysts expected the Tim Cook–led company to make $118.3 billion.

Apple services reported $19.5 billion in revenue as the tech giant reported a total earnings win, raking in $123.9 billion in sales during the first fiscal quarter of 2022.

Wall Street analysts had expected the tech giant to make $118.3 billion in revenue, according to Yahoo Finance, but Apple ended 2021 with an even higher performance, in part thanks to the holiday season. iPhone purchases accounted for a large portion of Apple’s sales, bringing in a record $71.6 billion in revenue.

The Apple services category, which was the second top revenue driver, includes Apple TV+, Apple Music, the App Store and iCloud. The tech giant did not detail the distribution of revenue or the number of subscribers each service acquired during the quarter, per usual. But during the company’s earnings calls, Apple CFO Luca Maestri said Apple services had a total of 785 million paying subscribers, an increase from the previous quarter’s 745 million.

Last quarter, Apple said it made $83.4 billion in revenue, with product sales making up $65 billion of that amount, again driven mostly by the iPhone. Apple services accounted for roughly $18.3 billion of the company’s total revenue.

During the earnings call, Apple CEO Tim Cook — who received a $98.7 million in 2021 compensation — noted that COVID-related supply chain delays still impacted the company, notably with the production of iPads, but that Apple had its highest-performing quarter in history.

“This quarter’s record results were made possible by our most innovative lineup of products and services ever,” Cook said in announcing the results. “We are gratified to see the response from customers around the world at a time when staying connected has never been more important.”

Maestri also noted that the company was able to return nearly $27 billion to its shareholders during the quarter.

This month, Apple has continued to make its deep pockets known at Sundance, most recently picking up Cooper Raif’s Cha Cha Real Smooth for around $15 million. On Jan. 21, the tech giant’s Apple Original Films also entered into a multiyear first-look deal with David Ellison’s Skydance, which ended its long-standing pact with Paramount Pictures.

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By Troy Warren

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