Services will likely count for One-fourth of Apple Revenues in 2025

Apple’s services segment is likely to capture one-fourth of the company’s total revenue in 2025, according to Counterpoint Research’s Apple 360 service

2025 will also mark the year when services revenue crosses the $100-billion-per-year mark for the first time, adds the research group. Further, the company should breach the $400-billion revenue mark for the first time in 2024, supported by the growth of its hardware and services segments.

Commenting on recent legal and regulatory issues faced by Apple in the U.S. and European Union, Research Director Jeff Fieldhack said, “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.”

“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,” he adds. “Am I expecting to see something special? I wouldn’t be surprised – that’s Apple’s M.O.”

Apple’s growing installed base, which is over 2 billion devices currently, has created a flywheel effect on the growth of the brand’s services business. Apple Store, followed by Apple Care+, Apple Music and a round-up Apple One subscription, has driven inflection points for Apple with a growing device base.

Launched in 2023, AppleOne could become the single largest contributor to Apple’s services revenue, according to Counterpointg. The tight software-hardware integration providing a unified and homogenous software and services experience to consumers, and a large installed base of premium consumers create a competitive advantage for Apple, notes the research group.

Counterpoint predicts that iPhones will continue to capture half of Apple’s revenue and 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.

The research group says that iPhone growth in emerging markets should also help with future growth for other Apple products as many consumers will be new users entering the iOS ecosystem. As these consumers become more dependent on their iPhones, they are likely to spend more on other Apple products.

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.