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Apple Reports 1 Billion Active Devices

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Along with the recently revealed record-breaking first quarter results, Apple has also disclosed the number of active Apple devices for the first time. And the number stands at a whopping 1 billion devices which include iPhone, iPad, Mac, iPod touch, Apple TV, and Apple Watch devices.

The number was disclosed in a supplementing material to the Q1’16 Earnings Report.  These devices are those engaged with Apple’s services within the past 90 days. These services include  iTunes, Apple Music subscriptions, the App Store, licensing, service parts, iCloud, and Apple Pay.

The growth of our services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices,

wrote Tim Cook in his statement.

The number of active devices has been disclosed for the first time by Apple as it had previously only disclosed the number of iOS devices sold. And this is in fact, a much better number to estimate the number of people actually using the devices.

According to the report, Apple had earned $31 billion in revenue from its installed service base in the fiscal year 2015 which was a 23 percent annual increase.  And in its first quarter of 2016 (Apple works in the October-September fiscal), the company has brought in $5.5 billion in services revenue which is a 15 percent year-over-year change.

Earlier this month, post the holiday season, Apple revealed that it had witnessed “the biggest ever” holiday season for the App store with customers spending $1.1 billion on apps and in-app purchases over the two-week period which ended January 3.

No doubt, Apple has shown better-than-expected numbers in the first quarter recording the largest ever profit for any company despite the iPhone sales missing the expected number by few hundreds short. But, even Tim Cook has admitted during the latest investor call that “iPhone sales will decline in the (second) quarter”.

Moreover, Apple’s forecast for its revenues is also not encouraging which is expected to decline for the first time in 13 years on the year-to-year basis.

During the Q2 2015, it had predicted $58 billion in revenue for the next year but now it has pegged that number to be anywhere between $50 and $53 billion in revenue.  The major reason for the decline, in addition to the slow down in iPhone sales, is the slowdown in the China’s economy.

According to Apple, if the exchange rates were the same as 18 months ago, the revenues for Q1 would have been around $80.8 billion as opposed to the $75.9 billion it actually posted.


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