Apple Services segment records $12.7 billion in revenue

Apple’s services segment recorded $12.7 billion in revenue in Q4 of 2019. In 2019, Apple launched Apple TV+, Apple Arcade, and Apple Card to spread wider in the game of the “services”. The company already has a strong foothold in the music streaming industry with its Apple Music service which goes head to head with Spotify.

The chief economist for Apple’s shareholder Capital Investment Counsel said,  “Services are important, but the trajectory is heading on target. I feel they’ve made good progress on that front.” Apple is looking for a way to keep its revenue from slowing down and also at the same time improve its revenue as the smartphone growth appears to have halted.

In 2018, the smartphone industry saw a slight growth and Apple was also affected by it. The company began investing in the services industry by launching a slew of services. Its TV streaming service “Apple TV Plus” is already a big hit – technically just “The Morning Show” is popular with the masses.

Apple’s CFO Luca Maestri said, “You need to keep in mind that from our total eligible device sales, you need to make a number of reductions for family sharing, for multiple device purchases and for geographic availability”.

Katy Huberty of Morgan Stanley asked Apple CEO Tim Cook to comment on the company’s vision for 5G. “How big of a demand driver do you view 5G capability in a handset, and what’s your view as to what the killer app will be from a consumer perspective?”

Apple does not usually reveal any details of its upcoming products and as expected Tim Cook replied by saying, “You know, we don’t comment on future products, and so I try to sidestep a bit,” Tim replied. “With respect to 5G, I think we’re in the early innings of its deployment on a global basis”.

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