The $3 trillion tech giant has announced that a billion people now pay for subscriptions to its services.
- On Thursday, Apple announced its fiscal 2023 third-quarter results.
- The company earned $81.8 billion in revenue, a 1% decline year-over-year.
- The company saw $26 billion in cash flow and returned $24 billion of that to its shareholders.
- It earned $21.2 billion in software sales during the quarter, seeing 8% year-over-year growth.
- Subscriptions to Apple Music, iCloud, Apple News, AppleTV+, and more now exceed 1 billion.
- Apple’s stock valuation has dropped 3% since Thursday’s announcement due to the 1% decline.
Why It’s Important
Apple continues to reign at the height of the tech world with trillions of dollars in business, growing device sales, and expanding services and hardware options—such as next year’s release of its virtual reality technology Apple Vision Pro.
The growth of software stands to be a valuable source of revenue for the company. As Axios notes, Apple’s long-term strategies involve offsetting hardware sales with revenue from software sales. This now represents a fourth of Apple’s total sales, and expects growth as the company projects its advertising business will grow to $6 billion in two years.
The company also announced this week that Apple Cards users, with the service having launched in April, have already deposited $10 billion into Apple Card Savings Accounts.
“We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone. From education to the environment, we are continuing to advance our values while championing innovation that enriches the lives of our customers and leaves the world better than we found it,” says Apple CEO Tim Cook.