A recent report suggests that Apple is poised to break the $100 billion milestone in services revenue for the first time, constituting a significant portion of its overall revenue by 2025. Despite facing legal and regulatory challenges, particularly in the form of antitrust lawsuits in the US and EU, analysts anticipate the tech giant to surpass the $400 billion revenue threshold by 2024, driven by the expansion of its hardware and services divisions.
While the specter of antitrust litigation looms over Apple, experts believe that any potential impacts are likely to materialize over the long term rather than the immediate future. Jeff Fieldhack, Research Director, acknowledged the existence of risks but emphasized that any effects on the monetization of the iPhone installed base are not expected in the medium term.
Central to Apple's robust revenue growth is its burgeoning installed base, which currently exceeds two billion devices. This expansive user base has catalyzed the proliferation of the company's services business, with offerings such as the Apple Store, Apple Care, Apple Music, and the comprehensive Apple One subscription driving significant milestones for the brand.
The introduction of Apple One in 2023 has been particularly instrumental, poised to emerge as the primary revenue driver within Apple's services portfolio. Despite this diversification, analysts anticipate that iPhones will remain the cornerstone of Apple's ecosystem, capturing a substantial portion of the company's revenue.
Furthermore, the continued expansion of iPhones into emerging markets is anticipated to fuel growth across Apple's product lineup. With many consumers in these regions entering the iOS ecosystem for the first time, the propensity to invest in additional Apple products is expected to increase as reliance on iPhones grows. This dynamic is projected to foster a cycle of growth for Apple, with its flagship device serving as the gateway to an expanding array of products and services.
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