“Apple Services is the 2nd of 4 pillars to our Apple as a Service thesis. It consists of the App Store, Apple Music, iCloud, iTunes, Licensing/Google, Apple Care, and Apple Pay,” Gene Munster writes for Loup Ventures. “Critical to Services visibility is stable iPhone growth, which we believe is achievable.”

“In CY18, Services should account for 14% of revenue, growing to 20% by CY23,” Munster writes. “Services has grown on average 22% y/y over the past 8 quarters and grew 31% in Mar-18, compared to flat iPhone revenue growth during that period. In 2018, we estimate the annual Services revenue per user to be $34.76, up from $30.16 in 2017.”

Munster writes, “Assuming an average SaaS multiple of 10.1x on CY18 revenue implies an Apple Services valuation of $381B.”

Read more in the full article here.

MacDailyNews Take: That valuation puts Apple Services just ahead of Toyota.

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