The Motley Fool is disappointed.
From James Brumley’s “What Bugs Me Most About Apple’s Q2 Services Revenue” posted Sunday:
Last quarter, Apple’s consolidated top line edged 1% higher, reaching $58.3 billion. Services led the way, with revenue for that segment coming in at a record-breaking $13.3 billion for 2020’s second quarter, up 17% year over year…
Given the circumstances, though, it seems Apple’s services would have grown much more than they did for the three-month stretch ending in March. Millions (more plausibly, billions) have been stuck at home for a good part of the past eight weeks, bored out of their minds. It looked like they were buying a lot more digital entertainment. Apparently, they weren’t buying a great deal more of it from Apple using their iPhones…
Given the backdrop of a record-breaking number of iOS devices in use at a time when consumers were using the daylights out of them, one would have expected a lot more services growth from Apple than the 17% improvement it mustered for the quarter in question.
Indeed, much of that absolute growth is a reflection of the growing number of actively used iOS devices rather than Apple’s improving ability to extract more revenue from iOS users. That puts the iPhone saturation debate back in the spotlight.
Cue the graphic:
My take: Never satisfied.