Copyright 9to5Mac
A new report says that Apple is expecting to announce annual Service revenues of well over $100 billion during its earnings report later this week. If accurate, that would make the company’s Services division a bigger business than either Walt Disney or Tesla … Apple’s Services division Apple’s Services division has become increasingly important over the years. That’s because every Apple device in use, old or new, represents an opportunity to generate recurring revenue. The number of different services offered by the company has also grown dramatically. This now includes: App Store iTunes Store Apple Music Apple TV Apple Arcade Apple News+ Apple Books Apple Pay Apple Card iCloud AppleCare Advertising Licensing (dominated by the Google default search engine deal) Annual revenue expected to break $100B The company will be reporting its latest earnings on Thursday, and the Financial Times says that analysts expect annual Service revenues to hit $108 billion. The services unit is expected to deliver annual revenues of $108.6bn in the year to last month, according to analysts’ consensus estimates from Visible Alpha, up around 13 per cent from the year before. If Apple hits those numbers when it reports its fiscal fourth-quarter results this week, that would make its services division alone larger than the entire annual sales of Walt Disney, Tesla or Tencent this year. That would mean the division has doubled in size in the past five years. Even antitrust action won’t stop the machine For many years, Services has looked like an infinite money-making machine for the company. Whether or not consumers upgrade their existing Apple hardware, they remain targets for services charging monthly or annual payments. If you do upgrade your iPhone and give your old device to a family member or friend, you just created a new potential Services customer for Apple. The piece notes the many antitrust cases the company faces around the world, which could hit the company’s App Store revenue in particular, but says that even this isn’t expected to dent the company’s income too much. Analysts expect services to make up more than 30% of the company’s revenue by the end of the decade. We’ll of course be bringing you live coverage of Apple’s earnings report and call on Thursday. Highlighted accessories Official Apple Store on Amazon Apple 40W Dynamic Power Adapter for iPhone 17 Official Apple iPhone Air cases and bumpers iPhone Air MagSafe Battery Official iPhone Air case Official iPhone 17 cases Official iPhone 17 Pro cases and Pro Max cases
