Apple Pay Proves Big Winner Of Latest Earnings Report
The big silver lining of Apple’s most recent quarterly earnings report came on the software side of things, with Apple Pay, Apple Music and iCloud bringing in $6.3 billion in revenue.
It’s 24% in solid growth in revenue that CEO Tim Cook was quick to highlight amidst the declining demand for iPhones, iPads and Mac devices.
“We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record,” he said in a statement.
The earnings report saw the Cupertino firm recording a $9 billion profit for Q4 2016, a drop of 9% from the previous year.
In the wake of the report, both analysts and Apple itself have expressed confidence at the company bringing revenues back up to the $76-78 billion dollar mark in the next quarter – and increased adoption of Apple Pay is set to play a huge role here.
The company says Apple Pay purchases have risen 500% year on year in the last quarter and claims there were more transactions using the service in September alone than the entirety of fiscal year 2015.
The rollout of the service to China is likely to blame for this spike in popularity, though whether that growth is remotely sustainable is a less certain matter.
Apple Pay has come under both legal challenges and up against increased competition from Samsung and Google in recent months and whether those circumstances will wear at the service’s growth remains to be seen.