A new report from Buy Shares has revealed that Apple Inc. (NASDAQ:AAPL) enjoyed a 161.63% growth in its services sector between Q3 2015 and Q3 2020, seeing it surge to become the fastest-growing branch of the $1 trillion tech giant.
Apple’s services segments comprises of a number of products, including: the App Store, Apple Music, Apple TV Plus, Apple Arcade, Apple News Plus, Apple Pay, and iCloud.
In Q3 2015, Apple’s services segment raked in revenue of $5.03 billion, a figure nearly dwarfed in comparison to its Q3 services revenue this year, which currently stands at $13.16 billion.
Despite the almost universal sucker punch dealt by the coronavirus pandemic in the first half of 2020, Apple actually saw a 4.95% growth in its services sector, up from $12.72 billion in the first 3 months of the year to $13.35 billion in Q2.
Back in February, the company warned that its year-end profits may take a significant hit from the impact of the coronavirus on its manufacturing sector – largely based in China – and said it expected to miss its $63-67 billion revenue target.
Overall, Buy Shares reported that Apple’s revenue per segment grew as follows between Q3 2015 and Q3 2020:
- iPhone revenue dropped by 15.77%, falling from $31.37 billion in Q3 2015 to $26.42 billion in Q3 2020
- Mac revenue shot up by 17.41%, up to $7.08 billion in Q3 2020 from $6.03 billion in Q3 2015
- iPad revenue soared by 44.93% to $6.58 billion in Q3 2020, up from $4.54 billion in Q3 2015
- Wearables, home, and accessories revenue grew 144.31% to $6.45 billion in Q3 2020 compared to $2.64 billion in Q3 2015
After reports that iPhone sales were beginning to slip back in 2016, the company shifted its focus to services and wearables to help plug the gap, and has since seen its profits lap up consumer interest in its innovative and stylish new products.
Behind its services, Apple’s wearables, home and accessories revenue was its second fastest-growing sector between Q3 2015 and Q3 2020, no doubt buoyed by the company’s increasing focus on wearable tech such as its highly-successful Apple Watch and AirPods product ranges.
The company’s share price has risen on the back of the company’s resilient performance during the pandemic and Buy Shares’ optimistic figures, up by 1.34% to USD 450.42 at 14:01 GMT-4 10/08/20, and way surpassing its annual low of USD 224.37 on 23/03/20.
Its dividend yield stands at 0.73% and its P/E ratio at 34.26.