Don't Overlook Service Revenues in Apple's Q4

Service Revenues
$Apple (AAPL.US)$ ’s business is primarily run around its flagship iPhone. However, the company’s services have also been a nice contributor to the top-line.
Some of Apple’s services include Apple Music, Apple TV+, Apple Arcade, iCloud+, Apple News+, Apple Podcasts, and Apple Fitness+.
In its latest quarter, the segment raked in $19.6 billion, falling short of the Zacks Consensus Estimate by a marginal 0.7% but reflecting a 12% Y/Y uptick.
In addition, Apple reported having more than 860 million paid subscribers across its services at the end of the quarter, up 35 million sequentially and 160 million Y/Y, owing to the strong performance of Apple TV+ and Apple Arcade.
Now, for the upcoming quarter, the Zacks Consensus Estimate for the segment sits at $19.7 billion, indicating a marginal sequential uptick and a 7.6% Y/Y increase.
Bottom Line
Revenue from the company’s services will be a closely monitored metric in the earnings call, as Apple has witnessed strong growth across the area.
Further, the growth within its services portfolio can help offset the company’s dependence on its flagship product, the iPhone.
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