Apple Sees Record Quarterly Results, Signals Growth Plans Include Content

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Apple’s financial results for Q1 2017 released yesterday show all-time record quarterly revenue of $78.4 billion, with international sales accounting for 64 percent of the quarter’s revenue.

“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way,” announced CEO Tim Cook, during an earnings call with analysts. “We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch.”

Revenue from services grew strongly over last year, led by record customer activity on the App Store, noted Cook. “Services are becoming a larger part of our business, and we expect the revenues to be the size of a Fortune 100 company this year.”

He pointed out that services currently drive over 150 million paid customer subscriptions, including original and third-party content.

Every major automaker, for example, is committed to supporting CarPlay with over 200 different models announced, including five of the top 10 selling models in the US, he pointed out. “There are well over 1 million people using CarPlay now, and this continues to grow rapidly.”

In addition, Luca Maestri, Apple CFO, addressed the music industry and teed up speculation of future moves. “We are the market leader in digital music,” he said. “Tim has talked about original content. We’ve had very good success with exclusives. So we know that it’s another business that we can grow.”

Along those lines, Cook offered three strong signals that a major media acquisition may be pending, reports Fortune.

First off, he allowed that Apple plans to double the $24 billion of 2016 annual revenue in its services unit—which includes all media sales—within four years.

Next, when asked about tax repatriation, Cook noted: “Apple is constantly considering acquisitions and there is no size acquisition that would be too big.”

Then, when discussing the possibility of an acquisition, Cook mentioned that so far his company has only stuck its “toe in the water” of producing original content. “We’re learning a lot about the original content business, and thinking about ways that we could play in that.”

Cooke added that the new Apple TV released a year ago is performing well as a content platform. “We have more things planned for it but it’s come a long way in a year, and it gives us a clear platform to build off of.”

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