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Apple Services Subscriptions — Including Apple Music — Top One Billion Despite Quarterly Revenue Decline

August 4, 2023
in General
Apple Services Subscriptions — Including Apple Music — Top One Billion Despite Quarterly Revenue Decline
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apple music subscribers

Despite suffering a year-over-year decrease in total revenue, Apple during the third quarter of its 2023 fiscal year saw paid subscriptions (to Apple Music, Apple Fitness+, and more) top one billion, according to a newly released performance analysis. Photo Credit: KAL VISUALS

Apple now has over one billion paid subscriptions across its suite of services – including Apple Music – and the company generated over $8.2 billion from wearables, home products, and accessories during Q3 FY 2023, according to its latest earnings report.

The Cupertino-headquartered business disclosed the subscribership milestone as part of a newly released performance breakdown for the third quarter (which wrapped on July 1st) of its fiscal year. Regarding the precise usership of the involved platforms, Apple has long opted against identifying the subscriber figures behind individual services like Apple Music and Apple TV+.

However, the total has increased by about 150 million throughout the past 12 months; execs had pointed to “over 975 million” subscriptions when delivering the prior quarter’s financials. Additionally, CFO Luca Maestri claimed during the corresponding Q3 FY 2023 earnings call that Apple Music (which now costs $10.99 per month in the States) had turned in record third fiscal quarter revenue.

For further context, reports in May suggested that Apple Music, in a stark contrast to Spotify and its rapidly expanding “billion club,” hadn’t seen a track top one billion streams. And in July, DMN reported exclusively on the disclosure of Apple Music’s stateside subscribership details.

In any event, Apple attributed a record $21.21 billion of its $81.80 billion in total Q3 FY 2023 revenue to the services category, up about 8.2 percent year over year (YoY).

Notwithstanding a roughly $1.16 billion YoY falloff in Apple’s overall quarterly revenue, the sale of wearables including AirPods (along with home products and accessories) generated $8.28 billion during the three-month window, the resource shows, for a comparatively modest 2.47 percent boost. (“It was a June quarter record for Greater China,” Maestri said of the wearables category.)

And while the Apple Music Classical developer reported $19.88 billion in net income for the third fiscal quarter, revenue suffered a YoY decline in each region except Europe (up $918 million YoY) and Greater China (up about $1.15 billion YoY). (As another pertinent aside, Apple includes India, where the company is said to have had its best Q3 FY yet amid an effort to improve its domestic reach, as well as Middle Eastern markets in the Europe segment.)

At the time of this writing, Apple stock (NASDAQ: AAPL) was worth $186.31 per share, reflecting a 2.54 percent dip from Thursday’s close, a 4.97 percent decrease across the latter five trading days, and an over 48 percent hike from 2023’s start.

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Copyright for syndicated content belongs to the linked Source : DigitalMusicNews – https://www.digitalmusicnews.com/2023/08/04/apple-music-subscriptions-q3-fy-2023-earnings/

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