How fast did Apple Services grow last quarter? (fiscal Q3 2018)

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A little more slowly than than the quarter before, according to my panel of analysts. But still…


Why do we give a fig about Apple’s Services, that grab bag of cash-generating operations that includes, according to a self-referential footnote in Apple’s quarterly reports, “revenue from Digital Content and Services, AppleCare, Apple Pay, licensing and other services”?

We give a fig because this once sluggish cash source has swelled to become Apple’s second biggest revenue source after the iPhone—bigger than the iPad or Mac—and one of its fastest growing.

How fast did Services grow last quarter? The 19 analysts I’ve heard from so far—10 pros and 9 independents—turned in estimates ranging from $7.5 billion to $9.7 billion (up 3% to 33%, respectively). Average increase: 26%.

To see how that compares with previous quarters, click on “Year over year growth” in the chart below. Don’t see the interactive chart? Try here.

To see what that looks like in context,

Below: The analysts’ individual estimates, pros in blue, indies in green:

services q3 2018
Click to enlarge.

We’ll find out who was closest to the mark at about 4:30 p.m. Eastern next Tuesday, July 31, when Apple is scheduled report its earnings for the third quarter of fiscal 2018. The conference call with analysts begins at 5 pm. I’ll be listening it. You can too. Tune in here.