Apple’s annual revenue for their Services category, which includes the App Store, Apple TV+, iTunes Store, Mac App Store, Apple Music, Apple Pay, AppleCare, Apple Arcade, Apple News+, and more can hit $100 billion in annual revenue by 2024, Evercore ISI analyst Amit Daryanani wrote in a note to clients on Wednesday.
In a research note Wednesday, Evercore ISI analyst Amit Daryanani laid out a path for Apple’s services arm to top $100 billion in revenue by 2024. He noted that Apple has averaged 20% growth in services over the last five years, largely because the number of iPhones and other devices in use has grown, rather than innovation. The new set of services, he thinks, should drive up average revenue per user and allow Apple to maintain—and potentially increase—services growth.
“Services remain an underappreciated growth lever especially given the shift in growth towards monetization and subscription-based mode[s],” he wrote. Daryanani thinks Apple can sustain 19% compounded growth through the September 2024 fiscal year, with 32% projected growth at Apple Music and 41% for Apple Pay. He thinks Apple Arcade and Apple TV+ can each reach 80 million-90 million subscribers by the end of 2024.
MacDailyNews Take: That’s $100 billion, with a “B,” which, btw, would put Apple’s Services business above the likes of Siemens, Citigroup, Marathon Petroleum, Comcast, Deutsche Telekom, Hyundai, DuPont, and others on the Fortune 500 list on which Apple Services, if it were its own company with $100 billion in annual revenue, would currently rank No.70. $100 billion in annual revenue which exceeds the annual revenue of Cisco and Morgan Stanley combined.