Services revenue of US$14.5 billion in the fiscal 2020 fourth quarter that ended September 26 topped Apple’s previous record of $13.3 billion from the second fiscal quarter of this year. CEO Tim Cook says demand was higher than expected.
“Fiscal 2020 set new all time records for revenue, earnings per share and free cash flow in spite of extremely volatile and challenging macro environment,” says Chief Financial Officer Luca Maestri.
Apple’s total revenue of $64.7 billion for quarter was up 1% year-over-year, which he says is pretty darn impressive considering consider that the company didn’t launch and ship any new iPhone models during the quarter.
“Outside of iPhone, we grew 25% in aggregate and had strong double digit year-over-year revenue growth in each product category,” Maestri says.
Services gross margin was 66.9% down 30 basis points due to the mix. Still, there was 16% growth year-over-year for Services.
Apple Services saw all-time records set for App Store, cloud services, music, advertising/payment services, and AppleCare and set records in every category and country that Apple serves.