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iPhone sales may be down, but business is booming for Apple Music and the App Store

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iPhone sales may be down, but business is booming for Apple Music and the App Store

What else is there to do during a lockdown other than use every app on our phones? Image: Budrul Chukrut / SOPA Images / LightRocket via Getty Images By Brenda Stolyar2020-05-01 00:55:52 UTC Consumers aren’t rushing to buy as many iPhones, iPads, or other Apple products as before the pandemic, but the company’s services seem…

iPhone sales may be down, but business is booming for Apple Music and the App Store
What else is there to do during a lockdown other than use every app on our phones?
What else is there to do during a lockdown other than use every app on our phones?

Image: Budrul Chukrut / SOPA Images / LightRocket via Getty Images

By Brenda Stolyar

Consumers aren’t rushing to buy as many iPhones, iPads, or other Apple products as before the pandemic, but the company’s services seem to be doing just fine. 

During Thursday’s earnings call, Apple disclosed that its services category, which includes the App Store and Apple TV+, hit an all-time revenue record of $13.3 billion for the second quarter.

The company saw strong performance within the App Store (for both downloads and search ads), Apple Music, video, and cloud services. App Store revenue also grew by double digits, as people continue to make in-app purchases and opt into subscriptions. 

Additionally, new services like Apple TV+, Apple Arcade, Apple News+, and Apple Card continue to attract new users, ultimately helping contribute to the overall growth of the category. Apple’s third-party subscription business increased 30 percent year over year, as well. 

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Given that we’re all social distancing at the moment, it was inevitable iOS users would turn to things like Apple TV+ or the App Store to help pass the time. Services like FaceTime and Messages also set new records for daily volume during the quarter.

And despite the unknown duration of the country’s current lockdown, Apple still expects this strong performance to continue throughout the June quarter. 

But it’s not only services where the company expects to see growth. Apple also believes its iPad and Mac sales will improve year over year into the third quarter. This forecast makes sense considering most of us are now relying heavily on our devices to stay connected, work remotely, and even attend classes. 

It also helps that, even with the coronavirus outbreak still growing, Apple hasn’t stopped releasing new products. Over the past couple of months, the company has not only launched new versions of its MacBook Air and iPad Pro, but also its Magic Keyboard accessory and the iPhone SE.

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