Apple Hits All-Time High with 2.35 Billion Active Devices, Sets Record in Services Revenue
Apple reaches an all-time high with 2.35 billion active devices globally and sets a new record in services revenue, surpassing $26 billion in the December quarter. The company sees growth across all product segments and achieves impressive earnings.
New Delhi: Apple has achieved a major milestone, surpassing 2.35 billion active devices globally. This marks the highest-ever installed base of Apple devices, a testament to the company’s continuous innovation and global reach.
Apple CEO Tim Cook revealed this achievement, along with the company’s exceptional performance in services revenue, highlighting a strong year-end performance for the tech giant.
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Apple’s Record-Breaking Active Device Install Base
Apple’s active device install base has reached an all-time high of 2.35 billion, an impressive achievement that spans across all Apple product categories and geographic markets. This growth underscores Apple’s continued dominance in the global tech industry, with the company’s ecosystem expanding rapidly.
Tim Cook, CEO of Apple, noted the success of the company’s services business, which has contributed significantly to this growth.
“In the past year, we’ve seen nearly $100 billion in revenue from our services business. I’m also pleased to announce that we reached a new record for our install base with over 2.35 billion active devices,” Cook shared during a call with analysts.
The surge in Apple’s active devices reflects both the increasing number of users adopting Apple products and the loyalty of existing customers who continue to engage with the ecosystem.
Apple Services Revenue Hits Record High
One of the standout achievements for Apple in the past year has been the remarkable growth in its services division. The company reported a new all-time revenue record for its Services segment, with total revenue reaching $26.3 billion in the December quarter, marking a 14 percent year-over-year increase. Services now represent a significant portion of Apple’s total revenue, with over $100 billion in total services revenue over the past year.
Apple’s services revenue includes income from various offerings such as iCloud, Apple Music, Apple TV+, the App Store, and other subscription-based services. The company’s ability to grow its services revenue is a key part of its strategy to diversify income sources, especially in the face of slower growth in hardware sales.
Strong Revenue Growth Across All Segments
For the December quarter, Apple reported a total revenue of $124.3 billion, up 4 percent from the same period last year. This growth was driven by solid performances across different product categories, particularly iPad and Mac.
- iPhone Revenue: Apple’s flagship product, the iPhone, generated $69.1 billion in revenue, roughly flat compared to the previous year. Despite a competitive smartphone market, the iPhone continues to be a significant revenue generator for the company.
- Wearables, Home, and Accessories: Revenue from wearables, home devices, and accessories reached $11.7 billion, contributing to the overall growth of Apple’s product revenue, which stood at $98 billion for the quarter, a 2 percent increase year-over-year.
- iPad and Mac Growth: One of the most notable performances came from Apple’s iPad and Mac segments, both of which saw year-over-year growth. iPad and Mac sales are steadily increasing, as remote work and hybrid learning continue to drive demand for these devices.
Services Gross Margin Reaches New Heights
Apple’s Services gross margin reached an impressive 75 percent, marking a 100 basis point increase sequentially. This margin expansion was primarily attributed to a favorable mix of high-margin services and the growing contribution of services to Apple’s overall revenue.
Record Earnings and Net Income Growth
Apple’s business performance in the December quarter led to a record net income of $36.3 billion, up 10 percent year-over-year. Diluted earnings per share (EPS) also reached a record high of $2.40, demonstrating strong profitability and financial efficiency.
This exceptional performance has solidified Apple’s position as one of the most valuable companies in the world.
Growth in Active iPhone Install Base and Upgraders
In addition to the record-breaking total active device install base, Apple’s iPhone install base also hit an all-time high. The company noted that the average geographic segment saw significant growth, with a record number of upgraders contributing to the overall increase in active devices.
The iPhone’s continued success is crucial to Apple’s business strategy, as it serves as the foundation for other services and products.
Record High for Paid Accounts and Subscriptions
Apple has seen an exceptional increase in both transacting and paid accounts, with paid subscriptions also experiencing double-digit growth year-over-year. The number of paid subscriptions across Apple’s ecosystem, including services like Apple Music, iCloud, and Apple TV+, continues to rise, further driving the company’s revenue diversification.
Both transacting accounts and paid accounts reached new all-time highs, reflecting the increasing demand for Apple’s services and subscription offerings. The continued success of paid subscriptions positions Apple for long-term revenue growth, even as hardware sales stabilize.
Looking Ahead: Apple’s Future Growth Prospects
As Apple continues to expand its product and services ecosystem, the company is well-positioned for further growth in 2025 and beyond. The 2.35 billion active devices represent a massive opportunity for Apple to leverage its existing customer base to drive additional revenue through services and subscriptions.
Apple’s focus on innovation, particularly in AI and its expanding services offerings, will likely play a pivotal role in maintaining its growth trajectory. The release of new Apple Intelligence features in the US in October 2024 is just one example of how the company is positioning itself at the forefront of technological advancement.
