Apple breaks quarterly revenue record

Apple has recorded its all-time biggest quarterly revenue sum with a staggering US$78.4 billion for the final three months of 2016.

The release of the company’s new flagship smartphone, iPhone 7, in September last year greatly contributed to the record-breaking period. Analysts were projecting the tech giant to post US$77.4 billion in revenue as Apple continue to exceed expectations.

In the corresponding period in 2015, the company hit US$75.9 billion in revenue, which is a growth of approximately 3.3% over a yearly period. 

64% of the quarter’s revenue was achieved through international sales. Interestingly, in the previous quarter, Apple posted its first drop in revenue and profit in 15 years, presumably due to declines in iPhone sales.

The Verge notes that Apple’s last quarter of 2016 included an extra week due to the last Saturday of the quarter, the day on which Apple typically closes its books, falling on December 31.

Apple also achieved revenue and sale records with Mac, Apple Watch, and Services divisions, with the latter being cited by CEO Tim Cook as the company’s largest growth segment.

The “services” segment, which includes Apple Music, iTunes, the App Store and other content and licensing businesses, has seen more growth than any other category, despite the iPhone 7’s impressive sales figures of late.

Apple facilitates 150 million paid memberships to its own services and other third-party subscription services. Apple Music is key part of these numbers, offering a streaming service that rivals Spotify. Apple Music currently has 20 million subscribers, only half of Spotify’s 40,000 subscribers.

In the first fiscal quarter of 2016, the company reported that the Services sector made $US7.2 billion in revenue, with a growth of 18% during the quarter, making it Apple’s third largest sector behind iPhone and Mac. 

Analysts are expecting Apple’s second-quarter revenue in 2017 to land between US$51.5 billion and US$53.5 billion.