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Apple services could account for a quarter of the company’s revenue in 2025

Published Apr 2nd, 2024 12:52PM EDT
Apple One subscription
Image: Apple Inc.

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Last year, Apple announced its services had 975 million subscribers, in addition to a user base of more than 2 billion active devices. While we don’t have official information on new numbers, a Counterpoint Research study revealed that Apple services might account for a quarter of the company’s revenue in 2025.

According to the paper, 2025 could mark the year when Apple services revenue crosses the $100-billion-per-year mark for the first time, while the company could breach the $400-billion revenue mark for the first time in 2024. This will be supported by the growth of its hardware and services segments.

Counterpoint Research is optimistic about these numbers, even with Apple facing scrutiny by the European Union and the US Department of Justice. “We know there is risk, but it is early stages right now. So, we are not expecting any impact to monetization of the iPhone installed base, at least not in the medium term,” said research director Jeff Fieldhack.

Apple services revenueImage source: Counterpoint Research

“As regards Apple’s relative silence around its AI strategy, well, that has now changed with the big hint dropped on Tuesday around the announcement for June 10 WWDC. Am I expecting to see something special? I wouldn’t be surprised – that’s Apple’s M.O.,” said Fieldhack.

While the iPhone will continue to account for half of Apple’s revenue, its services strategy is paying off. In 2019, Apple announced several new services, and a year later, it introduced the Apple One subscription, which combines all of the company’s services in three different tiers.

According to Counterpoint, the Apple One subscription, Apple Music, and AppleCare+ are among the services driving inflection points with a growing device base. The publication also believes emerging markets will still help future growth for other Apple products “as many consumers will be new users entering the iOS ecosystem.”

That said, even if Apple’s iPhone sales slow down, its services will still continue to add value to the company and its products.

José Adorno Tech News Reporter

José is a Tech News Reporter at BGR. He has previously covered Apple and iPhone news for 9to5Mac, and was a producer and web editor for Latin America broadcaster TV Globo. He is based out of Brazil.