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Analyst: Apple’s Services revenue will grow to $100 billion by 2023

In a note to clients — as noted by Seeking Alpha — Morgan Stanley analyst Katy Huberty projects that Apple’s Services revenue will grow to $100 billion by 2023.

Apple Services include Apple Music subscriptions, iTunes Music, iCloud storage plans, paid apps from Apple’s App Store, and Apple Care service plans, Apple Pay, etc. A TV streaming service is expected to join the line-up in 2019.

Apple reported $37 billion revenue in this segment in fiscal 2018. CEO Tim Cook set a target of doubling Services revenue between 2016 and 2020.

“If Apple hits the target of $50 billion by 2020, it could set an even bigger goal of doubling the revenue from Services segment in another 5-7 years,” Huberty says. “Apple’s management has already made it clear that they see the future of the company totally dependent on Services segment. Currently, Services segment makes only 14% of the total revenue base. As Apple diverts more resources to streaming content and new services, we should see the revenue share of this segment increase significantly.”

Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.