Apple Services Division is officially as large as a Fortune 100 company, just as predicted, and exactly on schedule.
In an article published almost to date one year ago, we had said, “we expect it [Apple Services Division] to be the size of a Fortune 100 company [by] next year.” And guess what, in the Earning Call held last week, Apple’s CEO announced the exact same thing! *pat on the back
Tim Cook said —
“Services revenue hit an all-time quarterly record of $7.3 billion, representing 22% growth over last year. We continue to see great performance all around the world, with double-digit growth in each of our geographic segments. Over the last 12 months, our services business has become the size of a Fortune 100 company — a milestone we’ve reached even sooner than we had expected.”
Well, not sooner than we expected, though!
A large part of this success can be attributed to the App Store, which rakes in billions of dollars every quarter in revenue on its own. This is a stark contrast to its counterpart in Android, where the Google Play Store barely makes any money through App sales. That’s probably because the Android community, by and large, prefers free apps over paid ones.
Of course, with an ever growing list of products, the Apple Services Division is only going to increase, because everyone needs services for their products! In his remarks to the press, Cook also hinted at some new products to come.
“We can’t wait to deliver all of these powerful innovations in the months to come, and we might even have some others to share with you later in the year.”
So there might be a few surprises for us this year after all! We wonder what new products the wizards at Apple might be conjuring, and we cannot wait to know!!