IANS | 02 Apr, 2024
Apple's services revenue is likely to cross the $100 billion mark for
the first time, despite legal and regulatory risks, accounting for
one-fourth of its revenue by 2025, a new report said on Tuesday.
According
to Counterpoint Research, the company should breach the $400 billion
revenue mark for the first time in 2024, supported by the growth of its
hardware and services segments.
As per analysts, antitrust
lawsuits in the US and EU (European Union) pressure are key risk
factors, but they are likely to play out over a longer term.
"We
know there is risk, but it is early stages right now. So, we are not
expecting any impact to monetisation of the iPhone installed base, at
least not in the medium term," said Research Director Jeff Fieldhack.
Apple’s
growing installed base, which is more than two 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 the tech giant with a growing device base, according to the
report.
Launched in 2023, AppleOne could become the single largest
contributor to Apple’s services revenue. In addition, analysts expect
that iPhones will continue to capture half of Apple’s revenue and remain
the centrepiece of the company's ecosystem.
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, the report said.