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By 2025, a quarter of Apple's revenue will come from services

Apple services included in various levels of Apple One

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A new study predicts that the success of the Apple One package will lead to services will account for more of Apple's revenue than any other category except iPhone.

As analysts focus on declining iPhone demand and regulatory pressure on Apple intensifies, Counterpoint Research sees a bright future for Apple Services. Specifically, his projections include that services will account for 25% of Apple's total revenue by 2025.

This will mean that annual services revenue will exceed $100 billion for the first time. Counterpoint also expects Apple's total revenue to grow to $400 billion annually — despite regulatory problems.

That's because legal and regulatory issues will likely take many years to resolve, and in the meantime, Apple's growing iPhone user base is expanding the market for services.

“We know there is a risk, but it is in its early stages,” Counterpoint research director Jeff Fieldhack said in a statement. “As such, we do not expect any impact on monetization of the iPhone installed base, at least in the medium term.”

How Apple's services revenue is rising to a quarter of Apple's revenue

Describing Apple's two billion active users as creating a flywheel effect, Counterpoint argues that services like Apple Music, AppleCare+ and the App Store showed corresponding growth. The company's analysts say that by 2025, the Apple One package will make the largest contribution to service revenues.

Counterpoint also says Apple One launched in 2023, when in fact it launched in late 2020. Analysts may have instead been referring to when the price of the Apple One was raised in November 2023.

Counterpoint also claims that the Apple One launched in 2023, when in fact it launched in end of 2020. Analysts may have instead been referring to when the price of Apple One was raised in November 2023.

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