Apple has posted record fourth quarter revenues of $64bn, a 2 per cent increase over Q4, 2018, despite a drop in iPhone sales, which accounted for $33.36bn, compared to $36.76bn a year ago.

The decline was partly compensated for by an increase in revenues from Apple’s service business, which racked up $12.5bn compared to $11.46bn in Q4 2018. Apple now has more than 450m paid subscriptions on its platform, up from 330m a year ago.

“We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from services, wearables and iPad,” said Apple CEO, Tim Cook. “With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best line-up of products and services ever, we’re very optimistic about what the holiday quarter has in store.”

Apple is providing guidance of revenues between $85.5bn and $89.5bn for Q1, 2020.