Apple tops 1 billion subscriptions, nearly $100 billion in services revenue in 2024

Core Insights - Apple's Services division achieved a record revenue of $26.3 billion for the quarter ended December 28, representing a 14% year-over-year increase [2] - The Services business generated nearly $100 billion in revenue over the past year, with over 1 billion subscriptions across its services [2] - Customer engagement with Apple's services reached record highs, with double-digit growth in paid accounts and subscriptions year over year [3] Revenue Performance - The Services division's revenue of $26.3 billion marks an all-time high for Apple [2] - The overall revenue from Services for the past year approached $100 billion, highlighting the division's significant contribution to Apple's financial performance [2] Customer Engagement - Customer engagement metrics for Apple's services, including both transacting and paid accounts, reached record levels [3] - Specific offerings like Apple Arcade and Fitness+ contributed to the growth in customer engagement [3] Regulatory Environment - Investors expressed concerns about how new regulatory changes could impact Apple's subscription revenue [4] - Apple's CFO emphasized the positive performance of the Services division and increasing customer engagement, without directly addressing regulatory concerns [4] Antitrust Context - Apple has faced ongoing antitrust scrutiny regarding its App Store practices, particularly concerning the percentage it takes from app transactions [5] - A recent Supreme Court decision upheld a lower court ruling that Apple was not a monopolist, but required Apple to allow app makers to direct customers to external payment options [6] - The outcome of the Epic-Apple case may encourage other developers to pursue legal actions against Apple, potentially affecting its market position [7]