Analyst estimates 89% to 96% of Apple’s revenue is linked to iPhone ownership
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Apple gets roughly half of its revenue directly from iPhone sales. But the product is indirectly responsible for far more than that – 89% to 96% of Apple’s revenue – according to one Wall Street analyst.
Millions of people likely own iPhones but no other Apple products, Needham analyst Laura Martin wrote Tuesday. Yet even those iPhone wielders often generate revenue for Apple in other ways.
She estimates Apple could haul in $108 billion in services revenue next fiscal year, representing just over a quarter of overall revenue. And 100% of that services revenue is dependent on iPhone ownership, in her view… Then there are Apple’s other products, which she expects to together generate $97 billion in revenue next fiscal year. Martin thinks that ownership of those products is highly dependent on whether consumers also have iPhones, to the extent that perhaps 50% to 80% of people would “churn out” of these other product categories if they stopped using an iPhone.
For that reason, she calculates that 89% to 96% of Apple’s revenue is linked to iPhone ownership.
MacDailyNews Note: Martin maintains a “Buy” rating on Apple with a $260 target price, so she must be confident in Apple’s ability to sell iPhones, at least.
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