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Apple’s Services business is worth $ 1.5 trillion, according to Wedbush analyst Daniel Ives.
In a note to investors, seen by Apple 3.0, Ives says Apple’s Services business is worth $ 1.5 trillion “in the eyes of the street.” Ives notes that with this comes a strong production run and demand on the iPhone 13.
The backbone of Apple’s revaluation remains its services business which we believe is worth $ 1.5 trillion in the eyes of the street, coupled with its flagship hardware ecosystem which is in the middle of its strongest product cycle in over 20 years. a decade led by the iPhone 13 Services business is further monetizing Apple’s golden installed base and is expected to reach over $ 100 billion in annual revenue by 2024.
In 2017, Apple CEO Tim Cook set a goal for the company. This objective was to enable it to double the size of its Services activity over the next four years. In 2017, Services revenue amounted to $ 29.9 billion. In 2021, that same number has risen to $ 68.4 billion.
Ives is betting that Apple is on track to become the number one company with a $ 3 trillion market cap in 2022. This will once again be attributed to a growing Apple ecosystem between services like Apple Music, Apple TV +, Apple. Fitness + and Apple Arcade. However, it will also be thanks to the exceptionally high demand for the iPhone 13 line of devices. Ives says supply chain sources say demand has “exceeded Apple’s supply by around 12 million dollars. ‘units in the December quarter “.
The effects of strong demand are likely to trickle down to the next two quarterly checks in March and June respectively.
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