Apple Inc. (NASDAQ:AAPL) says more than 1 billion devices are currently connected to its services even as it continues to grapple with concerns over slowing iPhone sales. The figure represents a 25% year-over-year increase and takes into consideration devices connected to the company’s services for the past 90 days.
Growing Services Revenue
The 1 billion milestone covers the likes of iPhones, iPads, Macs, iPod Touches, Apple TVs and Apple Watches from which Apple Inc. (NASDAQ:AAPL) continues to generate a substantial amount of earnings on sales. Some of the services that the iPhone maker boasts with gadgets include iTunes, Apple Music, App Store, licensing, iCloud, as well as Apple Pay.
Clocking the 1 billion mark is a milestone achievement considering the services business generated $31 billion in revenue for the company last year. For the first quarter of the year, Apple attributes $5.5 billion in revenue from the services offered on the devices.
The latest data also shows that iOS 9 is installed in as many as 75% of all iOS devices with 11.9% of devices still running on iOS 8. At the current rate Apple Inc. (NASDAQ:AAPL) expects iOS 9 to be downloaded by more users, than any other release.
Last year was Apple’s biggest ever holiday season on App store sales, as customers spent a record $1.1 billion. New Year’s Day set a single-day record on customers buying apps worth $144 million. Growth on this front could help offset investors growing concerns over the impact of slowing iPhone sales.
Slowing Hardware Business
Apple Inc. (NASDAQ:AAPL) sold a total of 74.8 million iPhones in the first quarter a slight increase from 74.5 million units sold in the first quarter of 2015. IPads sales which have been on a steep decline from their peak level clocked the 16.1 million mark with Mac’s sales clocking the 5.3 million mark
The US tech giant has issued a sales forecast that signals sluggishness could persist this year having projected revenue decline for the first time in ten years. While Apple Inc. (NASDAQ:AAPL) is entering a period of slow growth on the hardware front it may have to pursue opportunities for growth on the software front.