Apple customers are worth up to $153 per month

“Shares of Apple (AAPL) are up after Goldman Sachs’s Simona Jankowski reiterated a Buy rating on the shares and a $163 price target, and added the stock to the firm’s ‘Conviction Buy List,’ arguing the stock’s going to undergo a shift in how investors view it in 2016, being seen more as a company with recurring revenue streams, less as a hardware vendor,” Tiernan Ray reports for Barron’s.

“Jankowski models each Apple customer producing an ‘average revenue per user,’ or ARPU, a metric often used in subscription businesses such as cable and publishing,” Ray reports. “That metric is initially $42 per user, she estimates, but can rise to $153 per month, assuming an iPhone user buys all other Apple hardware products.”

“Jankowski arrives at the $42 by taking the average installment plan payment per month for various hardware products, including iPhone, for 24-month installment periods,” Ray reports. “At that $153 ARPU, a customer would be spending $32.45 per month on the iPhone, additional amounts on all other hardware items, for a total of $93.43 per month in hardware spend; and an average of $59.99 per month in content and other services and software. On the way to all that, it’s possible to hit a mark of around $82 if Apple customers just had an iPhone, the Apple Music monthly subscription, and perhaps paid $40 per month for what she expects is a forthcoming streaming television service from Apple.”

Read more in the full article here.

MacDailyNews Take: Well, we did let our iTunes Match subscriptions go since we’re Apple Music members anyway, so we “saved” $24.99 per year, at least!


  1. Apple’s customers are priceless and are Apple’s eternal secret weapon and penis envy.

    Every company in the wrold would do anything to have Apple’s undeniable army of ever loyal customers


  2. On the money!
    Apple tv service, apple music, cloud stirage , iphone payment .

    Add hulu, netflix, hbo, sho,, and some of premium channels.. And we get to 200.
    Add internet connection.. And we get to about 250.

    Its about what i spend now..

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