“Katy Huberty from Morgan Stanley has taken a deep-dive into Apple’s services market segment, and has taken a close look at the factors that will make Apple’s once-overlooked aspect of its business a major factor for investors to consider now, and in the future,” Mike Wuerthele reports for AppleInsider.
“Huberty says that Apple’s course to growth in a contracting hardware market overall world-wide is in services,” Wuerthele reports. “Apple’s ‘more engaged iOS user base and broadening portfolio of Services,’ versus its competitors makes Huberty confident that Apple will sustain 20 percent annual growth over the next five years overall, supported by Services.”
“Morgan Stanley is forecasting 11 percent over consensus over the next four years, with the last earnings announcement marking a ‘services-led margin inflection, similar to when Amazon began breaking out AWS revenue and profits,'” Wuerthele reports. “Looking far into the future, Huberty is expecting $101 billion in Services revenue alone in calendar year 2023 — a marked increase from the fiscal year 2018 revenue of $37.2 billion. For comparison, in fiscal year 2018, Apple sold $112 billion in iPhone hardware in the US alone.”
Read more in the full article here.
MacDailyNews Take: Behold, they begin to walk!
Pity the pro analysts who were repeated told by Apple to study the company’s services model and to stop relying on the unit sales crutch. Failing that, Apple simply pulled the crutch away. Walk on your own, Apple analysts! — MacDailyNews, November 2, 2018
Apple’s focus is not iPhone market share, it’s on dominating the higher end of its markets – November 3, 2018
Apple’s iPhone just had its best year ever – November 3, 2018
Why Apple’s unit sales reporting doesn’t matter anymore – November 2, 2018
The ‘smart money’ shrugs off Apple’s decision to no longer disclose unit sales – November 2, 2018
Apple rams their message home: Think ‘Apple as a Service’ – November 2, 2018
Investors bristle as Apple occludes iPhone unit sales data – November 2, 2018
Apple’s decision to stop reporting unit sales of iPhones, Macs, and iPads is a ‘defining moment’ – November 2, 2018
Apple to stop reporting iPhone, Mac, and iPad quarterly unit sales – November 1, 2018
Apple beats Street with another record-breaking quarter – November 1, 2018