Apple had good news for Wall Street yesterday, when CEO Tim Cook announced fourth quarter results, with revenue of $62.9 billion, $10 billion of it from the company’s Services unit, which includes Apple Music, iTunes and Apple Pay.

The $62.9 billion figure represents a 20 percent increase over the same period last year, and beat analysts’ expectations (pegged at about $61.57 billion, according to Thomson Reuters). Quarterly earnings per diluted share of $2.91, were up 41 percent. International sales accounted for 61 percent of the quarter’s revenue.

The $10 billion in Services revenue represents an all-time high for the company. Excluding a one-time favorable adjustment of $640 million recognized in the fourth quarter of fiscal 2017, Services revenue grew from $7.9 billion in the fourth quarter of fiscal 2017 to $10 billion in the fourth quarter of fiscal 2018, an increase of 27 percent.

While services are a bright spot, and demonstrate Apple’s successful diversification as companies like Samsung eat into its territory on the hardware and challengers from Acer to Lenovo claim new turf, the devices that have been Apple’s mainstay are still performing strong.  Earnings from Apple’s iPhone increased a healthy 29 percent, to $37.2 billion. This despite the new iPhone models falling below expectations, 46.9 million iPhones sold for the quarter.

“We’re thrilled to report another record-breaking quarter that caps a tremendous fiscal 2018, the year in which we shipped our 2 billionth iOS device, celebrated the 10th anniversary of the App Store and achieved the strongest revenue and earnings in Apple’s history,” Cook said in making the announcement.  “Over the past two months, we’ve delivered huge advancements for our customers through new versions of iPhone, Apple Watch, iPad and Mac as well as our four operating systems, and we enter the holiday season with our strongest lineup of products and services ever.”