Apple has released company’s earnings report for Q1 2017. Services segment has grown 18 percent year-over-year from $6.05 to $7.17 billion. During the next four years the corporation expects to double profitability of the sector.
Services include iCloud, ApplePay, Apple Music, App Store, AppleCare and others. This segment has always been very important for Apple, especially since upward trend in some categories was not always observed. Last quarter Services sales were higher in comparison with Mac, but now the situation has changed again after the holiday sales.
According to Apple’s CEO Tim Cook, user activity in App Store has increased considerably, thus in December 2016 the Service income reached $3 billion. In general, sales increased by 43% year-over-year, including growth in number of accounts and profits from one account.
However, iPhone still has record profitability. Sales rose 5% in Q1 2017 to 78.3 million devices. The company earned $54.4 billion. People were less interested in buying iPad and other Apple products, such as Apple TV, Apple Watch and iPod. Revenues fell by 22% and 8% respectively.