Forget all of the worries analysts were exhibiting in the run up to Apple’s latest earnings report.
Despite relatively weak growth in iPhone shipments during its fiscal second quarter—just 3 percent growth over the same period last year—revenue for the company’s biggest cash cow rose 14 percent to $38 billion. That, of course, was driven by a higher average sale price for the iPhone thanks to the launch of the $1,000 iPhone X late last year.
As the iPhone market reaches peak maturity, and as consumers show their willingness to hold onto aging smartphones for longer periods of time, it’s the rise of additional services and paid subscriptions that will help Apple maintain its dominance as the world’s most valuable company. During the most recent quarter, Apple said it added some 100 million subscribers to its paid offerings, which now total around 270 million subscribers in all. Revenue from paid services—which include things like HBO subscriptions and Apple Music—climbed by nearly a third to $9.19 billion, according to Apple.