iPhones Continue to Be a Bright Spot for Apple, Even in a Tough Economy

Apple’s iPhone success still isn’t slowing down, with the tech giant on Thursday announcing iPhone sales reached a record number for the March quarter, bringing in $51.3 billion in revenue. 

There are now over 1 billion active iPhone devices, Apple said on Thursday while announcing earnings for its fiscal second quarter that ended April 1.

iPhone sales are expected to continue, with the company likely releasing its iPhone 15 lineup in the fall. The new phones are rumored to include a USB-C port instead of Lightning; the Dynamic Island on all models; more RAM in the iPhone 15 Pro to make room for a possible A17 Bionic chipset; a periscope-style telephoto lens on the Pro Max; and a new luxe device called the iPhone 15 Ultra.

Read more: Best iPhone in 2023: Which Apple Phone Should You Buy?

Another bright spot in its second-quarter earnings was Apple services, the segment that includes the App Store, Apple TV Plus, Apple Music and Apple Arcade, hitting record quarterly revenue of $20.9 billion.

Apple doesn’t break down the numbers, so it’s unclear exactly how much each service contributed to the record number. However, Apple revealed during the earnings call that it now has 975 million paid subscriptions for services.

“We are pleased to report an all-time record in services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” Apple CEO Tim Cook said. 

Overall, Apple’s total quarterly revenue was $94.8 billion, down 3% year over year. It comes against a backdrop of a tough economy that has seen other major tech companies conduct mass layoffs this year, including Amazon, Google, Microsoft and Facebook parent company Meta.

Apple said it’s also “making major progress” in becoming carbon neutral by 2030.

Apple’s Worldwide Developers Conference on June 5 will likely see the company finally reveal its long-rumored AR/VR headset and show off iOS 17, the next iteration of its iPhone operating system. It’s rumored that iOS 17 will finally bring with it the ability to sideload apps on the iPhone.

The AR/VR headset from Apple has an expected release date this summer or fall, and is rumored to be similar to Meta’s Quest Pro, with focuses on work, mixed reality and eye tracking.