Apple’s services division, which includes its Apple TV+ streaming service, iCloud and Apple Music, helped the company achieve better-than-expected earnings in the third quarter of 2024.
Revenues for the sector rose from $21.2 billion a year ago to $24.2 billion according to the tech giant’s latest market update. It also reported over 1 billion active subscriptions across all services.
While iPhone and wearables sales declined, demand for iPads grew following May’s launch a new AI-focused iPad Pro and a larger iPad Air – revenue from iPad sales was up 23.7% to $7.16bn.
Overall, the firm reported quarterly revenue of $85.8 billion, up 5 percent from a year ago, and revealed it achieved quarterly revenue records in over two dozen countries, including the UK.
CEO Tim Cook said: “During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac.
“We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work.”
Luca Maestri, Apple’s CFO, added: “During the quarter, our record business performance generated EPS growth of 11 percent and nearly $29 billion in operating cash flow, allowing us to return over $32 billion to shareholders.
“We are also very pleased that our installed base of active devices reached a new all-time high in all geographic segments, thanks to very high levels of customer satisfaction and loyalty.”