Apple earned nearly $20 billion in 2015 by selling services to customers.
While iPhone, iPad, and Mac sales are slowing, the company has turned the sale of such products as Apple Music, iCloud storage, iTunes Music, and Apple Care services, into a $19.9 billion annual business.
Apple also takes a cut from every purchase you make with Apple Pay, which added to its revenue in 2016.
The company says its services business increased by 10% from a year earlier.
The services side of Apple’s business is important for the company and its investors. As iPhone, iPad, and Mac sales fluctuate, the company continues to collect revenue as the number of devices purchased and in use continue to compound.
Apple revealed this week that the company now has 1 billion “active” devices that have been interacted with at least once in the last three months.
“This is an unbelievable asset for us,” Cook said Tuesday on a conference call with investors. “Because our install base has grown quickly, we have also seen an acceleration in … what has become one of the largest service businesses in the world.”
In an impressive moment of realization, Cook pointed out that Apple’s services business alone is bigger than most Fortune 500 companies’ annual overall sales.
Apple’s services would be No. 148 on the Fortune 500 list if it was a separate company.
Apple revealed that customers purchased a total of $8.9 billion worth of music, apps and movies last quarter, $4.7 billion of which Apple earned as profit. Apple Care and iCloud generated about $800 million in sales last quarter.