Apple’s services business annual revenue is expected to top $100 billion for the first time this year, reports the Financial Times.
Apple’s services business includes revenue generated from the App Store, iCloud, Apple Music, Apple TV+, Apple Arcade, AppleCare, and Apple Pay.
According to analysts’ estimates at Visible Alpha, Apple’s services unit is expected to deliver annual revenues of $108.6 billion in the year to last month, up approximately 13% from 2024.
Apple reports its fiscal fourth quarter results later this week, and if Visible Alpha’s estimates are correct, Apple’s services division’s revenue will be more than the entire annual sales for several large firms, including Tesla and Disney. JPMorgan estimates that services revenue could make up a quarter of Apple’s total revenue, but accounting for as much as 50% of its profits.
Those revenue numbers come in the face of antitrust pressures by the US Justice Department, as well as new regulations in the European Union, which could result in lost revenue in the App Store.
Visible Alpha estimates that services could account for over 30% of Apple’s total revenue by the end of the decade, with sales potentially reaching $175 billion.
