Apple’s subscription services will continue to represent an increasingly important part of its turnover.
Tim Cook, CEO of Apple, has hammered it many times: the future of the brand lies in services.
Apple services are the brand’s new cash cow
In a few years, the manufacturer has multiplied subscription services, whether online storage with iCloud in 2011, music streaming with Apple Music in 2015 and more recently the launch of the Apple TV+ video streaming platform, Apple Card in the United States, the Apple Arcade video game service or Apple Fitness+ sports classes.
All of these products now constitute a small gold mine which alone accounts for nearly 20% of Apple’s revenue each quarter and which continues to grow year after year.
The growth prospects are also very good since JP Morgan analysts estimate that in 2025 Apple Music and Apple Arcade alone will weigh for 8.2 billion dollars in turnover and 180 million cumulative subscribers.
In detail, Apple Music would remain the most popular service with 110 million paying users and $7 billion in revenue, and 80 million mobile gamers could subscribe to Apple Arcade within three years, for a turnover of $1.2 billion.
Apple should not stop there and after the launch of Apple One, its package of services launched at preferential rates, the brand could offer a new subscription service allowing manufacturers to rent their iPhone or iPad. Enough to lock users into the ecosystem a little more by recovering a few dollars in fees on each monthly payment.
It has already been a decade since the former chief operating officer took over from Steve Jobs. This is an opportunity for us to come back to the discreet but important changes that Tim Cook has made within Apple.
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Source : iMore
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