The record services revenue is partly the result of a one-time line item totaling $236 million related to lawsuits, the company said. It also saw a boost from increased paid subscribers through the App Store, a 50 percent year-over-year increase in cloud revenue, and higher Apple Pay usage rates.
“Apple Pay continues to expand with well over 1 billion transactions last quarter, triple the amount from just a year ago, with growth accelerating from the March quarter,” Cook said on the earnings call. “To put that tremendous growth into perspective, this past quarter, we completed more total transactions than great companies like Square and more mobile transactions than PayPal.”
Forward-looking guidance: Apple guided toward fourth-quarter revenue between $60 billion and $62 billion, edging out Wall Street predictions of $59.47 billion, according to StreetAccount.
The company’s most recent quarterly reports have been weighed down by speculation of smartphone market saturation and the end of the so-called “supercycle.” So as Apple looks ahead to its fiscal fourth quarter, when it traditionally introduces new iPhone models, the company’s guidance could shed light on Apple’s ongoing handset ambitions. Apple typically launches new iPhone models at the end of the quarter, in mid-September.