Morgan Stanley: Apple’s services will grow to over $100 billion per year in 2023

“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


  1. 2023 is a long, long, long way off. The big investors, apart from Warren Buffett, are surely not looking at Apple that far ahead especially if they’re only concerned about counting unit sales every single quarter. The big investors are tying in Services with iPhone unit sales. They believe if unit sales drop then so will Services revenue and Apple will be nearly worthless.

    It’s a shame most analysts and big investors believe that Apple is no longer capable of coming out with a new product category and that the iPhone is Apple’s final dead-end product.

    Think of Apple as a Services company? Not when everyone says it’s The iPhone Company.

  2. Old Katy is probably right, and I hope she is. I reckon there’s no need to keep complaining about Apple leaving the Mac behind. I’ll probably give up on my hope of being able to buy a MacBook with minimum RAM/SSD and being able to easily upgrade them myself like I used to do. Since my first Mac in 1986, I’ve never bought anything but Macs, but Dagnabbedit if I ain’t thinking about getting a decent Windows laptop now! About $700-$800 one, maybe installing Linux on it along with Windows and see what happens. I’m that desperate and tired of sealed tight MacBooks. Heck, I even opened my Mac Plus, SE, etc., and upgraded them!

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