Apple could increase its income from advertising by more than five fold to $11 billion annually within the next six years, thanks to Apple TV+, coupled with Apple Inc’s foray into digital services, analysts from JP Morgan said on Friday.
Raising his share price target for the iPhone maker, analyst Samik Chatterjee argued the company could leverage the millions of users who search its App Store and Safari browser daily to generate the stellar growth seen by Facebook and Google in recent years.
He said the company had the potential to raise revenue by a third every year, from an estimated $2 billion currently to $11 billion in 2025.
“While investors are trying to identify the next big frontier for services, we believe hidden in plain sight and underappreciated by most is the advertising opportunity within Apple’s fingertips,” Chatterjee said.
MacDailyNews Note: Last month, Bernstein analyst Toni Sacconaghi wrote in a note to clients that Apple’s search ad business could generate over $500 million in revenue this year and quadruple that to $2 billion by 2020. More .