October 28 (Cailian Press) – Although the App Store is facing increasing legal and regulatory pressure, analysts predict that Apple... The company is expected to achieve annual revenue of over $100 billion for its service business for the first time this year.
According to Visible Alpha analysts' forecasts, Apple's services division will generate $108.6 billion in annual revenue in fiscal year 2025 (ending in September), an increase of approximately 13% over the previous year.
Apple 's services include iCloud, Apple Pay, and AppleCare insurance. If this figure is achieved, Apple's services business alone will surpass Disney's. Tesla Or Tencent's annual revenue.
With iPhone sales growth slowing, the services business has become one of Apple's most important growth engines, doubling in size over the past five years.
JPMorgan Chase Analyst Samik Chatterjee said that services are expected to account for a quarter of Apple’s total revenue, but could contribute as much as 50% of its profits, reflecting the “user stickiness” of products such as Apple Pay and iCloud subscriptions.
Chatterjee added, "Consumer engagement with the iPhone continues to improve, not only due to the growth in device installations, but also due to higher monetization per device."
Furthermore, the multi-billion dollar partnership agreement between Apple and Google has further boosted service revenue. Google pays Apple an annual fee to be the default search engine on the iPhone. This is a substantial source of revenue for Apple, and at zero cost.
Apple is currently facing regulatory pressure in the United States, the European Union, and the United Kingdom.
The U.S. Department of Justice has accused Apple of using its dominant position in the smartphone market to suppress competition and restrict consumer choice, including in the App Store, smartwatches, and mobile payments. field.
The UK Competition Appeal Tribunal ruled last week that Apple "abused its near-absolute market dominance" in iOS app distribution and in-app payments, potentially requiring it to pay up to £1.5 billion in damages to millions of British consumers. Apple called the ruling "flawed" and said it would appeal.
Despite facing numerous legal challenges, analysts still expect the services business to continue to account for a growing share of Apple's overall revenue in the coming years.
Visible Alpha predicts that by 2030, services revenue will exceed 30% of Apple's total revenue, potentially reaching $175 billion.
(Article source: CLS)
