Apple’s Services Business Hits Fortune 100 Level

1 minute read
| News

Apple is a hardware company, a media company, and now it’s a serious services company, too. Company CEO Tim Cook said the company’s services business is on track to reach the size of a Fortune 100 company in 2017, and the goal is to double the division’s growth over the next four years.

Apple services businesses reach Fortune 100 level in 2017

Apple’s services business reaches Fortune 100 level

Mr. Cook talked about Apple’s services business performance during the company’s 2017 first fiscal quarter earnings conference call Tuesday afternoon. Apple’s services include Apple Music, iTunes, iCloud, Apple Pay, and the App Store.

He told analysts,

Services are becoming a larger part of our business, and we expect the revenues to be the size of a Fortune 100 company this year. Our services offerings are now driving over 150 million paid customer subscriptions. This includes our own services and third-party content we offer on our stores.

To put that in perspective, a Fortune 100 company is among the 100 largest companies—both public and private—in the United States as compiled by Fortune Magazine.

That’s a pretty impressive milestone considering we’re talking about a part of Apple’s overall business, and not the entire company. Still, Apple doesn’t seem content with its current services success.

“We feel great about this momentum, and our goal is to double the size of our services business in the next four years,” Mr. Cook said.

Currently, Apple has 150 million paid customer subscriptions, and services revenue is up 18.4% thanks to App Store growth. Services revenue is up to US$7.2 billion.

Apple Pay transaction volume is up more than 500% year-over-year, too, and use tripled in 2016.

Apple reported $78.4 billion in revenue for its first fiscal quarter, setting a new company record. The company sold 78.2 million iPhones during the quater, along with 13 iPads and Mac sales were up 1%.

Looking forward, Apple is guiding for second quarter revenue between $51.5 billion and $53.5 billion.

Considering the company’s services performance so far, it’s a safe bet it’ll continue to play a big role in Apple’s bottom line.

3 Comments Add a comment

  1. wab95

    Impressive, particularly for a company whose services are often compared unfavourably with those of their competition (iTunes, iCloud). While 150M cannot be generalised across all services, that’s still a substantial user base in total.

    Perhaps the bean counters in Cupertino will see fit to set aside some of that service revenue to invest in R&D for HomeKit.

  2. CudaBoy

    Seriously Kids, I’ve been with Apple since way back when it was a Computer Co. that created that thing that is still buried in the masthead here. But, funny thing – the Apple that we initially had to fight tooth and nail for against the Blue Meanie(s) – what I call ‘the golden years of smack Mac v Windoze’ was subtly at first and then obviously hi-jacked to BECOME that Thing that the Thing with the Hammer was chucking towards in that 1984 Thing. Phones? Mobile? Really? They STOLE my Apple Computer, Inc!!! You know, the one that said they didn’t have any interest in the Music Business when Apple Records was suing them…and they settled…THAT Apple!! They became Sony(MGM). Software was and is KILLER, except they are ditching AppleScript and Automator for us non-Sony old Geezers that actually use Macs for graphics and music production aka WORK and not anti-social tweet/text/instagram junkie fixes in the middle of a conversation Thing they “innovated”.
    WTF “services”, are you nuts? It’s the same “dream” they had with that famous Car They Are Making…. How many stockholders here would keep AAPL if they sold off the entire iOS hardware and software business? Answers? The iOS biz is THE MONSTER!!!! And it has Cancer – it will keep growing. My love/hate is 50-50. I’ve ALWAYS hated the phone/mobile “toy” biz but it’s the SOLE reason I won’t abandon my ancient shares – and I HATE THAT. I wish Apple would split the iOS company from the Mac company and have a third company called Apple that can go and do whatever they want – the car, the vape pen, cripes I BEG them to do an electric powered (actually hybrid option too-might as well hook up to the Health functions in iOS) carbon fiber – some 3D printed components so you could print replacements if needed at home… your Solar infused Mac-Vest along with your motion will generate enough DC to power your Bike AND iOS Interface – HUD on your AppleVizior© ..call it the AppleSpeed bike. I’m out. d:)

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