JP Morgan analyst Samik Chatterjee is predicting a big future for Apple TV+ and Apple’s services, driven not just by monthly subscription feed, but also via increases in advertising revenue.
As a result of this strength, Chatterjee sees only upsides for Apple, reflected by his growing his stock price estimate by $10 to $290.
Chaterjee sees a big advertising opportunity within Apple’s services, given larger market trends. The user base of about one billion iPhones, and Apple’s “successful exploration of advertising to-date” may entice Apple to do so, predicts the analyst… In the last fiscal quarter, Apple reported its highest-ever revenue from Apple Search ads in the App Store… Another avenue of possible growth is by charging Google more to be the primary search engine on iOS. Apple accounts for about $14 billion of Google’s $30 billion in traffic acquisition cost annually.
In September 2020, Chatterjee predicts only 2 million Apple TV+ paid subscribers. Assuming there are no other free offers, he expects that to dramatically expand to 101 million paid subscribers [by 2025].
MacDailyNews Take: Just what Apple needs, more money! 🙂