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Analyst believes Apple's services business alone is worth a cool $1.5 trillion

Iphone 12 Pro Apple One Subscription
Iphone 12 Pro Apple One Subscription (Image credit: Christine Romero-Chan / iMore)

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.

Oliver Haslam
Contributor

Oliver Haslam has written about Apple and the wider technology business for more than a decade with bylines on How-To Geek, PC Mag, iDownloadBlog, and many more. He has also been published in print for Macworld, including cover stories. At iMore, Oliver is involved in daily news coverage and, not being short of opinions, has been known to 'explain' those thoughts in more detail, too.

Having grown up using PCs and spending far too much money on graphics card and flashy RAM, Oliver switched to the Mac with a G5 iMac and hasn't looked back. Since then he's seen the growth of the smartphone world, backed by iPhone, and new product categories come and go. Current expertise includes iOS, macOS, streaming services, and pretty much anything that has a battery or plugs into a wall. Oliver also covers mobile gaming for iMore, with Apple Arcade a particular focus. He's been gaming since the Atari 2600 days and still struggles to comprehend the fact he can play console quality titles on his pocket computer.