Apple reported record payments and cloud revenue that contributed more than 19% of the tech giant’s overall revenue growth.

Revenue from the services, which include iCloud and Apple Pay, was $23.1 billion in its fiscal first quarter, up 11.3% year over year, according to the company’s earnings statement released Feb. 1. Apple’s total revenue for the quarter ended Dec. 31 was $119.6 billion, up 2% YoY. 

THE BIG PICTURE: Tech giants including Amazon, Google and Microsoft all reported growth in cloud services in the most recent quarter. 

In the fourth quarter, AWS reported a 13% YoY increase in revenue to $24.2 billion, while Google reported cloud services revenue of $9 billion, up  26% YoY, according to the companies’ earnings statements. 

“Apple sees strength in cloud, payments, video, advertising … [and] paid subscriptions continued to grow strong double-digits year over year, and Apple has more than 1 billion paid subs across its services platform,” Bank of America Securities wrote in a Feb. 1 report. 

BY THE NUMBERS: In fiscal Q1, Apple reported; 

• Operating income of $40.3 billion, up 11% YoY; 
• Net income of $33.9 billion, up 13% YoY; and 
• Total operating expenses of $14.5 billion, up 1.1% YoY. 

NOTEWORTHY: Apple Card reported that its 12 million users earned $1 billion daily in cash back in 2023. In April 2023, Apple launched a savings account with Goldman Sachs, which hit $10 billion in deposits by Aug. 2, according to the Apple release. 

In November, reports circulated that Goldman Sachs and Apple might part ways on the Apple Card. In 2022, Goldman Sachs reported that it had lost over $1 billion on Apple Card between the start of 2020 and September 2022, according to the bank’s Jan. 13, 2023, SEC filing.  

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