Apple’s strategy of becoming a services company just crossed a major milestone, with the company reporting more than 1 billion paid subscriptions.

Since its founding, Apple has been known primarily as a hardware company. In recent years, however, the company has increasingly pivoted to services as a way to offset slowing hardware sales and the constant need to outdo itself with new hardware releases.

In the company’s latest quarterly report, CEO Tim Cook highlighted just how successful the strategy has been:

“We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone,” said Tim Cook, Apple’s CEO. “From education to the environment, we are continuing to advance our values, while championing innovation that enriches the lives of our customers and leaves the world better than we found it.”

“Our June quarter year-over-year business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment,” added Luca Maestri, Apple’s CFO. “During the quarter, we generated very strong operating cash flow of $26 billion, returned over $24 billion to our shareholders, and continued to invest in our long-term growth plans.”