Revenue Will Grow Even Without Increased iPhone Sales.
Evercore ISI research company said Apple investors underestimate the power of Apple, in particular when it comes to the services of the company from Cupertino. According to preliminary data, by 2024 the revenue of this unit will more than double.
Evercore ISI analyst Amit Daryanani noted that Apple services “still remain an underestimated leverage.” He also added that these products should increase ARPU (average revenue per user) and maintain a steady growth in company revenue.
In 2019, Apple stepped up its subscription-based services business. The company began offering new services such as video streaming, games, news, and credit cards. If you add them to existing services, you get a very large potential source of income.
Evercore has confirmed the target price of Apple shares at $ 360 (they currently cost about $ 317). Until fiscal year 2024, Apple’s revenue from services may grow at a constant total annual growth rate of 19%. As a result, as already noted, the income from services by that time will exceed $ 100 billion.
Published data show that in 2019, Apple’s revenue from services amounted to about $ 46.3 billion, which amounted to almost 18% of the company’s total revenue.