What you need to know
- A Wedbush analyst report suggests that Apple's services are worth around $1.5 trillion.
- Apple services are expected to help it on its way towards a $3 trillion valuation this year.
- Apple Arcade, Apple Music, Apple TV+, and others are working to give Apple a big advantage over the competition while earning globs of money in the process.
Apple's services business alone is worth a massive $1.5 trillion according to a new research note from Wedbush analyst Dan Ives. That means that the likes of Apple Music, Apple TV+, and Apple Arcade are more than holding their own as Apple works towards becoming a $3 trillion company in 2022.
Apple is on pace to become the first $3 trillion market cap company in 2022… Hitting $3 trillion will be another watershed moment for Apple as the company continues to prove the doubters wrong with the renaissance of growth story playing out in Cupertino.
The research note, shared by Philip Elmer-DeWitt, goes on to say that Apple's services business should be capable of bringing in $100 billion or more of annual revenue by 2024.
The linchpin to Apple's valuation re-rating remains its Services business which we believe is worth $1.5 trillion in the eyes of the Street, coupled by its flagship hardware ecosystem which is in the midst of its strongest product cycle in over a decade led by iPhone 13. The Services business is further monetizing the Apple golden installed base and poised to reach $100 billion+ annual revenue by 2024.
Apple is well aware of the importance of its own services and offers the Apple One subscription bundle that brings its best offerings under a single monthly payment. Anyone who is already paying for a couple of services should definitely check Apple One out — it's one of the best iPhone deals around and can definitely save you money if you're using multiple services already.
