Apple's Services Revenue Hits New All-Time High of $11.5 Billion in Q2 2019

Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, and AppleCare, has become an increasingly important revenue driver for Apple amid stagnating iPhone sales, and Apple has been focusing more than ever on its services category.

During the second fiscal quarter of 2019, Apple's services segment brought in $11.5 billion in revenue, up from the $9.9 billion services earned in the second quarter of 2018. Apple set a new all-time record for services revenue this quarter.

Apple set new March quarter revenue records for the ‌App Store‌, iCloud, ‌Apple Pay‌, and ‌AppleCare‌. ‌Apple Pay‌ is available in 30 markets and expect to be live in 40 markets by the end of the year.

Apple now has 390 million paid subscriptions across all of its services, an increase of 30 million compared to last quarter. By 2020, Apple expects to pass half a million paid subscriptions by 2020.

Apple in March announced a slew of new services that will boost services revenue even higher in the future. Apple News+, a $9.99 per month service that provides unlimited access to more than 200 magazines, has already launched, and later this year Apple is introducing Apple Arcade, ‌Apple News‌+, and a new Apple Card credit card.

Apple has said that it is aiming to reach $14 billion in services revenue per quarter by 2020, and the company is well on its way to reaching that goal.