Technology

Report: Apple’s services revenue expected to exceed $100 billion by 2025

Apple’s services revenue is anticipated to surpass $100 billion, accounting for one-fourth of its revenue by 2025, according to a report by Counterpoint Research. Despite legal and regulatory risks, the company is projected to reach $400 billion revenue mark in 2024.

Analysts believe that antitrust lawsuits in the US and EU pose as key risk factors, but they are expected to play out over a longer period. Research Director Jeff Fieldhack stated, “We know there is a 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.”

Apple’s growing installed base, which is currently over two billion devices, has significantly impacted the growth of the brand’s services business. Apple Store, Apple Care+, Apple Music, and Apple One subscription have driven growth points for the tech giant with a growing device base, as per the report.

The introduction of AppleOne in 2023 could potentially become the significant contributor to Apple’s services revenue. Additionally, analysts predict that iPhones will remain the centerpiece of the company’s ecosystem, capturing half of Apple’s revenue. iPhone growth in emerging markets is also expected to drive growth for other Apple products.

In emerging markets, the growth of iPhones is expected to attract new users to enter the iOS ecosystem. As these new users become more dependent on their iPhones, they are likely to spend more on other Apple products, contributing to the overall growth of the company, the report added.

IANS

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