Apple just reported strong financial results for the fourth quarter of 2016. “We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac, and Apple Watch,” said CEO Tim Cook. “Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline,” the company wrote in its letter to investors.
The company took in $ 78.4 billion in revenue and sold 78 million iPhones. The last few quarters have marked the end of an incredible growth spurt for Apple. After more than a decade of record setting sales and revenue gains, the momentum around iPhone sales finally tapered off. Business around the iPad has also been sluggish, and while the Apple Watch has show signs of steady improvement, it does not appear destined to become the kind of mass market hit that the iPod and iPhone were. The introduction of the iPhone 7 has helped to end that slump.
With over a billion iOS devices active around the world, Apple has been able to shore up its flagging hardware sales growth with an increase in revenue from services to those devices. This includes money from Apple Pay, iCloud storage, Apple Music, and App store sales.