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The “other product” segment which includes the Apple Watch and Apple TV, increased 36 percent to $5.5 billion.
Cook spent much of an earnings call with analysts playing up increasing revenue from Apple services, digital content, subscriptions, and products other than iPhones.
The number of Apple devices being used in the world as of January is at an all-time high of 1.3 billion, the ranks having grown 30 percent during the past two years, according to Apple.
“That number speaks to the strength of the product; the loyalty of the customer, the strength of the ecosystem; it also obviously fuels the services business,” Cook said.
While iPhone sales are at the heart of Apple’s money-making machine, the company has taken to spotlighting revenue from the App Store, iCloud, Apple Music, iTunes and other content and services people tap into using its devices.
– Where’s the wow? –
Neil Saunders, managing director of research firm GlobalData Retail, saw “worrying trends” behind Apple’s record-breaking quarterly earnings.
The number of iPhones sold declined, and people overall seem to be waiting longer to upgrade to new smartphones, the analyst noted. He saw the slowdown in iPhone sales as a sign that Apple isn’t coming up with the kind of innovations that “wow” consumers.
“We believe that the clear blue water that once existed between Apple and rivals is much diminished,” Saunders said.
“The company has time to reopen the gap, but to do so, it needs to pull something new and unique out of its hat sooner, rather than later.”
Apple said its cash pile grew to $285 billion, with much of that stashed overseas.
The company said last month it would bring back most of its profits from abroad to take advantage of a favorable tax rate in legislation approved by Congress last year.
The repatriation will result in a tax bill of about $38 billion, but also would free up big chunks of money for investment.
