Apple can overcome difficulties

Apple can overcome difficulties Picture 1

According to estimates by research firm Counterpoint Research , the service business will account for 25% of Apple's revenue in 2025, despite legal pressure from many countries.

This means that service revenue at Apple in 2025 will exceed 100 billion USD. In addition, Apple's total revenue in 2024 may reach 400 billion USD for the first time due to both growth in the service and hardware segments.

According to the analyst firm, Apple's legal issues in the US or Europe are still in the early stages and may take many years to complete. Meanwhile, the iPhone user base is growing, helping the service department benefit.

"We know there are risks, but everything is in the early stages right now. Therefore, we do not expect this to impact revenue from the iPhone user base, at least in the medium term," Jeff Fieldhack, Director of Research at Counterpoint Research , said.

Citing the number of more than 2 billion active Apple devices, Counterpoint said services such as Apple Music, Apple Care+, App Store and Apple One subscription packages have a corresponding growth rate.

The analyst firm predicts that by 2025, Apple One will contribute the most revenue to the service segment. This subscription package was first launched in 2020, with prices increasing from November 2023.

Besides services, iPhone is expected to still account for 50% of revenue, remaining the focus of the Apple ecosystem.

The trend of premiumization and growth in emerging markets has contributed positively to the iPhone business, offsetting the decline in sales in China at the beginning of the year.

According to experts, the tight integration of hardware with software brings a synchronous service experience to users. The majority of customers in the high-end segment are also Apple's competitive advantage.

The iPhone's popularity in emerging markets could also contribute to growth for other products, as more people will learn about and join the iOS ecosystem. When customers depend on iPhone, they tend to buy other Apple devices.

Apple will hold the WWDC 2024 programmer conference on June 10. Besides new software on the iPhone or iPad, Apple is likely to announce a strategy to integrate artificial intelligence (AI) onto the device.

"Regarding Apple being relatively quiet about its AI strategy, that has changed with the revelations surrounding the announcement of WWDC on June 10," Mr. Fieldhack said, expressing excitement about "something special". may appear at the event.

Micah Soto

Update 04 April 2024