Apple’s revenue from its Apple Arcade and Apple Music services is expected to jump 36% to $8.2 billion by 2025, J.P.Morgan said on Monday, as Apple taps its 1.8 billion and growing user base to drive subscription services.
The two services are likely to have a combined subscriber base of about 180 million by 2025 – 110 million for music and 70 million for gaming – boosted by the rapid spread of the internet and a booming gaming industry, according to JPM analysts, led by Samik Chatterjee.
Apple Music, which was launched in 2015 and is the second-biggest music-streaming service after Spotify Technology, is expected to account for a bigger chunk of that revenue, raking in about $7 billion by 2025, the brokerage said.
Apple Arcade, the gaming subscription service launched in 2019, is estimated to pull in $1.2 billion.
The company does not give a sales breakup for gaming and music services but the overall segment, which includes App Store, Apple TV+, Arcade and Apple Music, reported revenue of $19.82 billion for the March quarter. The business is seen as Apple’s engine for expansion.
MacDailyNews Take: For some perspective, if they were a separate company with $8.2 billion in combined revenue, Apple Music + Apple Arcade alone, would rank No.423 on this year’s Fortune 500 list of the largest United States corporations.
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