Apple's earnings report for the second quarter of fiscal 2017 disappointed investors, but the news seemed pretty good from the perspective of the mobile development industry. Investors didn't like the fact that iPhone sales slipped slightly, which CEO Tim Cook blamed on news media reports about the next version of the iPhone. In addition, iPad sales declined.
However, Apple's services business, which includes the App Store, brought in $7.04 billion, an 18 percent year-over-year increase. During the earnings call, the company noted that the App Store had generated twice as much revenue as Google Play during the quarter.
Cook added, "Our wearables platform is the size of a Fortune 500 company." Business Insider pointed out that the smallest company on the Fortune 500 list had revenue of $5.1 billion last year, so it is safe to assume that Apple's wearable revenue exceeds $5 billion annually.