Home TECHNOLOGY Apple’s Services Revenue To Surpass $100 Billion Mark By 2025

Apple’s Services Revenue To Surpass $100 Billion Mark By 2025

0
Apple’s Services Revenue To Surpass $100 Billion Mark By 2025

[ad_1]

A new report released on Tuesday says that Apple’s services revenue is poised to surpass the $100 billion milestone by 2025, comprising one-fourth of its total revenue. Despite facing legal and regulatory challenges, the Cupertino, California-based company is expected to achieve this landmark, according to market intelligence firm Counterpoint Research.

The market research firm further predicted that Apple is projected to exceed the $400 billion revenue threshold for the first time in 2024, driven by the growth of its hardware and services divisions. While antitrust lawsuits in the US and EU pose significant risks, analysts believe that any impacts are likely to unfold over the long term.

Apple's Services Revenue To Surpass 0 Billion Mark By 2025

Also read: Apple May Launch Affordable AirPods And AirPods Max Later This Year

“We know there is risk, but it is early stages right now. So, we are not expecting any impact to monetization of the iPhone installed base, at least not in the medium term,” Jeff Fieldhack, Research Director, Counterpoint Research, said, on the recent legal and regulatory issues faced by Apple in the US and EU.

“As regards Apple’s relative silence around its AI strategy, well, that has now changed with the big hint dropped on Tuesday around the announcement for June 10 WWDC. Am I expecting to see something special?  I wouldn’t be surprised – that’s Apple’s M.O.,” Fieldhack added.

Apple’s expanding installed base, which currently exceeds two billion devices, has catalysed the growth of its services business. The report highlights the pivotal role played by services such as Apple Store, Apple Care+, Apple Music, and the comprehensive Apple One subscription in driving growth, leveraging the expanding device base.

Since its launch in 2023, Apple One is expected to emerge as the leading contributor to Apple’s services revenue. Analysts anticipate that iPhones will maintain their position as the cornerstone of the company’s ecosystem, accounting for half of its revenue.

Furthermore, the report suggests that iPhone growth in emerging markets will fuel future expansion for other Apple products, as new users entering the iOS ecosystem are likely to increase their spending on additional Apple offerings. As these consumers become increasingly reliant on their iPhones, their expenditure on other Apple products is expected to rise accordingly.

Apple iPhones will continue to capture half of Apple’s revenue and remain the centerpiece of Apple’s ecosystem. Premiumisation trends and growth in emerging markets are benefiting Apple’s iPhone business, with the latter likely to offset some of the volume declines seen in China earlier this year. iPhone growth in emerging markets should also help with future growth for other Apple products as many consumers will be new users entering the iOS ecosystem. As these consumers become more dependent on their iPhones, they are likely to spend more on other Apple products.

[ad_2]

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here