“Every business will be a software business,” this famous quote is shaping 2023. According to Apple’s Q2 report, the company’s service revenue has reached a ‘new all-time high.’ At the same time, Apple has seen Mac sales take a tumble. However, Canalys and IDC both predicted a worldwide shipment slowdown for laptops, and Apple has been hit with the same. Also Read - WWDC 2023: Apple is all about safety, support and a community of like-minded people, says Indian developer duo
The company has posted quarterly revenue of $94.8 billion, down three percent year over year. In simple words, Apple made less money than it did in the same quarter last year. But the company has shown a shift in revenue, and that should interest you. Also Read - As BGMI returns, government outlines 3-month probation, conditions for Krafton
Here are some interesting excerpts from Apple’s Q2 revenue release, and how they change the way you look at Apple. Also Read - Apple's new feature to help users fix billing issues without leaving app
Apple Q2 earnings report: You are spending more on apps!
“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” said Tim Cook, Apple’s CEO.
In simple words, Apple has sold millions of iPhones and continues to sell millions more. But those are not one-off purchases anymore. Anyone buying an iPhone is buying it for the ecosystem experience. This means apps and services that require a monthly subscription.
A Statista report from 2021 says that 13 percent of iPhone users in the US pay for 200GB iCloud storage. Eight percent of users have 50GB iCloud, and seven percent are using the 2TB iCloud plan. In other words, close to 30 percent of Apple users were paying monthly for iCloud storage in 2021.
That said, 37 percent more users are paying for Apple Music, and 13 percent for Apple Music family plan. Apple’s services got an instant boost after the company launched its Apple One plan in 202o, and this is how it affects you, the end user. The company’s dedication to services can be seen when you go to the Apple Store in Saket, Delhi. You can see dedicated Apple Arcade and Music avenues and experience zones.
Every device maker, be it Apple, Samsung or Google, is trying to sell a software experience so that users will keep using their hardware to access those services. That’s why Samsung uses its own Galaxy ecosystem over the stock Android. If you like the software and what it does, you may be willing to pay for it.
So even when the global market is showing a slowdown in laptop and tablet sales, phone makers are confident that their services will make up for it. This is why Apple’s Q2 revenue call declares a cash dividend of $0.24 per share of the company’s common stock, an increase of four percent, despite the slowdown in Mac sales.