\n<\/p>\n
Apple\u2019s iPhone sales may be down, but the company\u2019s Services division, which includes the App Store, iCloud, Music, TV+, and other subscriptions, is still soaring. <\/p>\n
The Cupertino-based tech giant reported<\/a> Thursday its Services business had an all-time revenue high of $26.3 billion for the quarter ended December 28, up 14% year-over-year. Services generated nearly $100 billion in revenue over the past year, CEO Tim Cook said during Thursday\u2019s earnings call. In addition, Apple reported having more than 1 billion subscriptions across its services, including through third-party apps in the App Store.<\/p>\n The company said that customer engagement with its services, including both transacting and paid accounts, reached record highs. Paid accounts and subscriptions both grew by double digits year over year.<\/p>\n Apple pointed to expansions of specific offerings like Apple Arcade, which continues to add games and Fitness+, which adds new programs. It also noted Apple\u2019s Tap to Pay<\/a> for iPhone, which is now live in 20 markets.<\/p>\n On the topic of subscriptions, investors wanted to know how a new regulatory environment could potentially affect these numbers.<\/p>\n While investors didn\u2019t outright ask about the Trump administration\u2019s impact on Apple revenue directly, one question focused on whether new regulatory changes could be beneficial. That is, would a \u201cmore balanced regulatory environment\u201d potentially reverse prior headwinds that Apple may now be absorbing in its results?<\/p>\n Apple\u2019s CFO, Kevan Parekh, skirted the question, reiterating instead the positive numbers for Services and adding that customer engagement was increasing across the customer base, all its services offerings, and geographic regions. CEO Tim Cook didn\u2019t respond to the question.<\/p>\n For years, Apple has defended itself over antitrust lawsuits and other governmental actions, both in the U.S. and abroad. The core debate has centered on how much of a percentage Apple is justified to take from the apps it hosts on its App Store and the transactions that flow through them.<\/p>\n Last year, one key antitrust case finally came to an end when the U.S. Supreme Court ultimately declined to hear<\/a> an appeal on the Epic-Apple decision, initially filed by the Fortnite game maker. That means the lower court\u2019s decision that the tech giant was not a monopolist still stands.<\/p>\n However, that decision did mean Apple has to allow app makers to steer customers to the web from links inside their apps. <\/p>\n Though the lawsuit was largely in Apple\u2019s favor, Epic won a similar case with Google. Given the partial victory, other developers may have been inspired to pursue their own legal actions against Apple or Google, hoping to continue carving away at Apple\u2019s chokehold on the app distribution market.<\/p>\n<\/div>\nRegulatory impact<\/h2>\n