For the past few financial quarters, Apple has reported that its Services arm is slowly gaining momentum in terms of revenue generation, whereas the technology giant’s other divisions are losing steam. In the company’s Q1 2024 earnings, it was reported that Services reached a new high. From where we are looking, it appears that the only way for this category to go from here is up, and according to the latest research, it could bring in $100 billion for Apple by 2025.
Overall, Apple could bring in $400 billion in annual revenue, with Services said to be behind the iPhone when it comes to bringing in the most dough
A new prediction from Counterpoint Research states that Services will reach the $100 billion mark in 2025, with Apple expected to reach $400 billion in revenue in 2024. In short, Services would account for 25 percent of the technology giant’s annual revenue, becoming only second to the iPhone in this regard. Counterpoint Research says that Apple’s software and hardware integration, coupled with other factors, gives the firm a competitive advantage over others.
“Apple’s growing installed base, which is over 2 billion devices currently, has created a flywheel effect on the growth of the brand’s services business. Apple Store, followed by Apple Care+, Apple Music and a round-up Apple One subscription, has driven inflection points for Apple with a growing device base.
Launched in 2023, Apple One could become the single largest contributor to Apple’s services revenue. The tight software-hardware integration providing a unified and homogenous software and services experience to consumers, and a large installed base of premium consumers create a competitive advantage for Apple.”
Apple’s Services division was earlier predicted by Wedbush analysts to reach a value of $1.5 trillion to $1.6 trillion by the end of 2024, with the company itself said to reach a $4 trillion valuation in the same period. Assuming the Cupertino technology behemoth can reach this status before 2025 kicks off, it will be a remarkable feat, considering the boatload of regulatory issues that Apple is currently facing.
However, as far as this year’s iPhone 16 family goes, previous reports have mentioned the launch to be a lackluster one, as the upcoming models will not sport any compelling features, leading to fewer upgrades, resulting in a shipments decline.
News Source: Counterpoint Research
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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