Services are still a small part of Apple's sales compared with the iPhone, which booked more than $38 billion during the quarter, but services provide a high-margin, steady and quickly growing revenue stream as smartphone sales are set to slow worldwide.
"Services revenue is a wonderful thing because it is predictable and in my mind it should increase the multiple of the company because it's a much more consistent revenue stream," Ian Winer, analyst at Wedbush, said on CNBC's "Closing Bell" after the report.
Apple has expanded its reach in original content, and recently acquired a magazine subscription app, Texture. Apple Music is also competing against Spotify, which recently went public and is scheduled to report earnings for the first time Wednesday. The company has also opened new avenues for app developers with the release of augmented reality software.
Still, Siri, Apple's smart voice assistant, remains a sore spot for some Apple watchers, who have compared it unfavorably to Amazon Alexa. Apple's long-awaited smart speaker started shipping Feb. 9.