Apple finished the year strong in its services business, the company said in a press release Wednesday.
Customers on the App Store -- one the main cash cows in Apple's services segment -- spent $1.42 billion between Christmas Eve and New Year’s Eve, a 16% increase over the same period last year, Apple said. And New Year's Day 2020 was its biggest single day ever on the App Store, with customers spending $386 million, representing a 20% increase.
“2019 was the biggest year for Services in Apple’s history. We introduced several exciting new experiences for our customers, all while setting the standard for user privacy and security,” said Eddy Cue, Apple’s head of Internet software and services, in a statement.
Last year, Apple rolled out several new services, including Apple TV+, Apple Card and Apple Arcade. Services make up a growing slice of Apple's overall top line: In the third quarter of 2019, Apple posted $12.5 billion in services revenue, up 18% year-over-year.
"Coupling this dynamic with AirPods which we now believe finished the year selling 67 million AirPods units (which was well above our original 56 million estimate) speaks to the underlying strength that Cupertino is having monetizing its golden jewel installed base of 925 million iPhones worldwide heading into FY20 and beyond," wrote Wedbush analyst Dan Ives in a note on Wednesday.
Ives believes that there is room for upside in Apple's December quarter, given signs of strength in services growth, sales of AirPods and a "massive 5G super cycle" on the horizon for Apple.
Apple shares were up 1.4% to $302.58 on Wednesday afternoon, close to an all-time high.