Services are shooting the lights out!

The iPhone stays strong and services are shooting the lights out! Apple released its Q3 results last night. What a company. Here are the highlights:

iPhone sales grew 3% year-on-year to $40.67 billion for the quarter. Extraordinary in the current macroeconomic climate.

Mac and iPad sales are down from the COVID highs. Mac sales were hit by supply constraints and are down 10% on last year.

Wearables (Apple watch, Airpods, etc) were down 8% over the year.

Revenue from services grew 12% year-on-year to $19.6 billion. Services include App Store, Apple TV+, Apple Music, cloud services and others. Apple now has 860 million subscribers paying for its services, up 23% from 700 million a year ago. On top of this, Apple’s CFO, Luca Maestri, noted that their services install base grew to an all-time high across every geographic region and major product category. At the same time, they saw increased customer engagement with their services. Services now makes up just shy of a quarter of total revenue.

Overall, total revenue for the quarter was $83 billion and net profit $19.3 billion (23%). That means iPhones make up almost 50% of the company’s total sales. Best consumer product of all time?