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Apple Reports Record Growth For Services Division

It was another good quarter for Apple, even as consumers wait expectantly for the iPhone 8

The company announced its fiscal Q3 results on Tuesday, posting quarterly revenue of $45.4 billion, up 7 percent from $42.4 billion in the prior-year period.

The company posted unit and revenue growth in all product categories for the quarter, ended July 1. It sold over 41 million iPhones during the period, up 2 percent in units and 3 percent in revenue year over year.

While Apple sold 15 percent more iPads for the quarter (11.4 million), revenue for this segment was up just 2 percent. This can likely be attributed to the company’s decision to kill off the iPad Air in favor of a more affordable model.

Unit sales of Macs ticked up 1 percent (4.2 million), with revenue for this segment growing 7 percent to $5.6 billion. As is par for the course, the company did not break out sales for its Apple Watch, and it will be interesting to see the manner in which it reports sales of the HomePod smart speaker once it begins shipping in December. 

The services segment generated $7.3 billion in revenue, up a whopping 22 percent year over year, which CEO Tim Cook called a quarterly record. The number of paid subscriptions reached over 185 million, an increase of nearly 20 million for the quarter.

Apple Pay meanwhile, is performing much more strongly overseas then in the U.S., said chief financial officer Luca Maestri, adding that the infrastructure for mobile payments is much stronger internationally than in the U.S. According to Maestri, three out of four Apple Pay transactions occur outside the U.S.