Late last week Apple posted its Q3 earnings which were even high by their own lofty standards. Q3’18 revenue shot up 20% to $62.9B (in just one quarter!), and net profit did even better with a +29 YoY gain. One of the top growth drivers for Apple was its Services division, which generated $10B in revenue during Q3.
Most of Apple’s Services billing comes from in-app purchases, but music streaming is also a big chunk. Apple doesn’t break out streaming revenue from the overall Services line, so there’s no way to tell how much Apple Music is contributing. However, Apple did announce that its music streaming service surpassed 50M subs worldwide, and it’s widely believed that they now have more subscribers in the US than Spotify.
While Apple is still first and foremost a device company, they’re doing an amazing job of building an ancillary business around selling the content that runs on their devices. Talk about mastering the ecosystem play!