Apple’s Services revenues, which include Apple TV+, iCloud Storage and News+, have risen to their highest-ever level.
The Cupertino company delivered December quarter revenue that was in-line with market expectations, though iPhone revenue for the quarter was lower than expected.
Apple’s services revenue grew 14% to $26.34 billion, though the iPhone remains the largest revenue generator.
Apple Chief Executive Tim Cook told an analyst call on Thursday that the iPhone 16 is outperforming its predecessor on the same point in the cycle.
Having already suffered a fall of 11% the Chinese market, tariffs imposed by Donald Trump could further hit sales, which are under pressure from the domestic Huawei in a market where the AI Apple Intelligence is not yet available.
Overall, iPhone revenue fell nearly 1% from a year earlier to $69.1 billion in the financial first quarter. The December quarter normally accounts for about a third of iPhone revenues.
