Music streaming adds significant revenue to Apple’s Q4 financials

iPhone sales still make up more than half of the company’s quarterly revenues but Services and Wearables revenue recorded major growth.

This includes revenue streams from Apple Pay, App Store, iCloud, iPad, Wearables and Apple Music, which reported the most revenue in the pot. Meanwhile, iPhone and Mac sales continue to shrink year-on-year.

“We concluded a ground-breaking fiscal 2019 with our highest Q4 revenue ever, fuelled by accelerating growth from Services, Wearables and the iPad,” Apple CEO Tim Cook said.

Services increased by 18% year-on-year to $12.5bn, whereas iPhone sales decreased by 9% to $33.36bn and Mac sales dropped by 5% to $6.99bn.

The company delivered slightly better than expected earnings per share of $3.03 versus the street estimate of $2.84, and a revenue of $64bn compared to $62.99bn.

The biggest winner was noted in the Wearables and Accessories division with a 54% increase year-on-year to $6.52bn.

With the announcement of the new AirPod Pros on Tuesday, this figure is expected to increase in the near future. The AirPod Pro sports two integrated microphones in each earbud and advanced noise cancellation features. Also included is an adaptive equaliser that enables the user to tune low and mid frequencies in real time depending on the shape of the user’s ears.

Apple TV+ is also set to launch on 1 November, which student subscribers to Apple Music will be able to access for free.

The company is also offering a free one-year Apple Music subscription to anyone who purchases a new Apple device. This is expected to further increase revenue streams from the company’s Services division.

 “With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best line-up of products and services ever, we’re very optimistic about what the holiday quarter has in store,” Cook said.