Considering Apple's size and many areas of activity, it's not surprising that the company's 5 most profitable lines of business include software, hardware, services, and media. Its iPhone has consistently ranked among the top five smartphone vendors, and it has also set new standards for performance, creating new ways to connect with the world. However, the most interesting piece of news is that the company's revenues are not limited to its iPhone. While it continues to expand its hardware business, Apple is still primarily dependent on the US market.
While Apple's growth and profitability are often attributed to the iPhone unit, the company's services, and hardware businesses are increasingly contributing to that growth. In fiscal year 2020, Apple sold $137.8 billion worth of iPhones. During the same period, Apple earned $38.9 billion in services, up 47% from Q4-2019. These services and products include the iTunes Store, Apple Music, the Apple Pay service, and iCloud storage.
The International Business segment of Apple's services division consists of Australia, India, and various Asian countries. The segment generated $5.5 billion in operating profits last year, accounting for about 6.6% of the company's total. Similarly, the European segment accounted for $16.5 billion in operating profits in 2018, representing an increase of 61.2% from the same period last year. Finally, Apple's wearables and services business continued to grow, contributing to a 6.2 percent increase in overall operating profit.
Services is the second most profitable line of business for Apple. The company posts revenues of $68.4 billion in the fiscal year 2021, up from $53.8 billion in the previous year. Sales in the personal computer sector are a significant part of Apple's overall revenue, with the MacBook laptop and iMac desktop computer accounting for about one-third of sales. In Q4-2021, the company generated $7.6 billion in operating profits, representing a 49.5% margin.
The iPhone is Apple's most profitable line of business. The company's iPad has been the most popular tablet computer in the world and accounted for 56.7% of total revenue in fiscal year 2019. The Mac segment also contributes to the company's Services division, accounting for 17.7% of the company's total sales. The Wearables, Home, and Accessories segment contributes a further 9.4% of total sales in fiscal year 2019 (after tax).
It has generated $20 billion to $30 billion in sales per quarter over the past three years. The iPad is also the company's most profitable line of business because the average iPad owner keeps it for more than 3 years. In addition to smartphones, the iPhone has other key products: Beats headphones, Watch, and AirPods. The iPhone segment accounts for around $16.5 billion.
The segment accounts for a third of Apple's total revenues. In the fiscal year 2018, services revenues grew from $5.2 billion to $10 billion. In addition to the iPhone, Apple's services business also includes a video game subscription, a streaming movie service, and an Apple Card, which compete with other financial payment companies. Aside from the iPhone, Apple also has new services aimed at attracting younger consumers.
The iPhone has always been Apple's biggest revenue generator. The company's Mac products accounted for almost half of its total revenue in its fiscal year 2019. The Apple Music business line led in the revenue category, while its iPhone sales accounted for just over a quarter of the company's overall sales. The company's iPhone and iPad are also among its five most profitable lines of business. Its mobile app stores have the highest profit margins of any product in the industry.
Despite its massive revenue, Apple's services revenue is growing at a faster pace than its hardware. Its Apple TV+ service, for example, launched in March 2016. Its subscription-based service enables users to access content such as video music. As of Q3 of fiscal 2019, the company has 660 million paid subscribers for its services. During the first quarter of its fiscal year, this segment will generate $4.8 billion in revenue.
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