May 28, 2024
Business

Apple’s Services Set To Contribute 1/4th Of Revenues By 2025

However, Antitrust Concerns Loom Large

Apple Inc. is poised to witness a significant surge in its services revenue, with projections indicating that the segment will constitute a quarter of the tech giant’s total revenue by 2025.

According to Counterpoint Research’s Apple 360 service, this expansion marks a milestone as services revenue is expected to surpass the $100-billion-per-year mark for the first time in the company’s history.

The forecast comes amidst legal and regulatory challenges in the United States and the European Union.

Antitrust lawsuits pose a notable risk to Apple’s operations, although analysts suggest that the impact may be drawn out over a longer term.

Jeff Fieldhack, Counterpoint’s Research Director, said: “We know there is a risk, but it is in the early stages. So, we are not expecting any impact on the monetisation of the iPhone installed base, at least not in the medium term.”

Anchored By iPhones

While services progress upward, iPhones will continue to be a cornerstone of Apple’s revenue stream, capturing half of the company’s total earnings.

The integration of hardware and software, coupled with a burgeoning user base exceeding two billion devices, has propelled the growth of Apple’s services division.

Key offerings such as the Apple Store, Apple Care+, and Apple Music have contributed to the company’s success, with the AppleOne subscription service emerging as a potential game-changer since its launch in 2023.

Despite challenges in some markets, including China, the iPhone business remains robust, buoyed by premiumisation trends and expansion into emerging markets.

Analysts predict that growth in these regions will bolster iPhone sales and drive demand for other Apple products, further solidifying the company’s ecosystem.

In anticipation of future developments, particularly in artificial intelligence (AI), Apple’s upcoming Worldwide Developers Conference (WWDC), scheduled for June 10, 2024, has sparked speculation.

With hints dropped regarding the company’s AI strategy, observers anticipate significant announcements, aligning with Apple’s penchant for innovation.

Counterpoint Technology Market Research, a global firm specialising in technology, media, and telecom industries, provided insights into Apple’s growth trajectory. Their analysis underscores the company’s resilience in the face of legal hurdles, with services emerging as a pivotal revenue driver in the years ahead.

Featured image: Antitrust lawsuits pose a notable risk to Apple’s operations. Credit: Stephen L

    Arnold Pinto

    Arnold Pinto

    Arnold Pinto is an award-winning journalist with wide-ranging Middle East and Asia experience in the tech, aerospace, defence, luxury watchmaking, business, automotive, and fashion verticals. He is passionate about conserving endangered native wildlife globally. Arnold enjoys 4x4 off-roading, camping and exploring global destinations off the beaten track.
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