Apple succeeds in its diversification: services are taking off!

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A few years ago, when iPhone sales were declining, Apple decided to focus on services to diversify its sources of revenue and to depend less on iPhone revenues. On March 25, 2019, the firm organized a special keynote, during which it presented neither iPhone nor iPad. Indeed, the event focused on Apple’s new services. During it, the firm presented the Apple Card payment card, Apple Arcade, Apple News+ and Apple TV+.

In recent years, Apple has not has, moreover, continued to strengthen its services, for example with the launch of the Apple One subscription. And today, we can say that the firm has succeeded in its bet, since its services represent an increasingly significant share of revenues. In 2023, Apple claimed more than 975 million subscribers for its various subscription services. And today we learn that Apple services should soon generate a quarter of the company's revenue.

In any case, this is what the company Counterpoint Research says in a new publication. According to it, 23% of Apple's revenues in 2023 came from its services. This year, this share would be 24%. And in 2025, it would be 25%. Besides this, Counterpoint predicts that, for the first time, in 2025, Apple services will generate more than $100 billion, while total revenue is expected to exceed $400 billion, for the first time.

Apple One: the star of Apple services?

As a reminder, the majority of Apple services are only accessible on its products. However, the Cupertino company can rely on a base of 2 billion devices in use which, according to Counterpoint, boosts this activity. And, according to the company's predictions, Apple One subscription could become the main growth engine for Apple services. As a reminder, this is an all-in-one subscription which, in France, gives access to iCloud+, Apple TV+, Apple Music, Apple Arcade and Apple Fitness+.

Nevertheless, even if services are up sharply, the iPhone will continue to be Apple's main source of revenue. “iPhones will continue to capture half of Apple's revenue and will remain the centerpiece of Apple's ecosystem. Premiumization trends and growth in emerging markets are benefiting Apple's iPhone business, with the latter likely to offset some of the volume declines seen in China earlier this year. ~/em>, we can read in the Counterpoint publication.

• In 2019, Apple launched a series of new subscription services to diversify its revenue streams as iPhone sales were declining
• Today, this diversification is successful: service revenues are increasing and are expected to represent a quarter of Apple's total revenues in 2025
• However, iPhone is expected to continue to generate more than half of Apple's revenue

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