Apple Inc’s revenue from gaming and music offers is likely to rise 36% to $8.2 billion by 2025, according to J.P.Morgan, as the iPhone manufacturer leverages its massive user base to power its subscription services.
According to JPM analysts lead by Samik Chatterjee, the two services will have a combined subscriber base of approximately 180 million by 2025 – 110 million for music and 70 million for gaming – driven by the rapid penetration of the internet and a thriving gaming industry.
According to the brokerage, Apple Music, which was founded in 2015 and is the second-largest music-streaming service after Spotify Technology, is likely to account for a larger portion of that revenue, bringing in almost $7 billion by 2025.
Apple Arcade, the gaming subscription service introduced in 2019, is expected to generate $1.2 billion in revenue.
Apple offered no remarks on the subject.
The business does not break down sales of gaming and music services, but the whole division, which includes the App Store, Apple TV+, Arcade, and Apple Music, generated revenue of $19.82 billion in the March quarter. The company is regarded as Apple’s growth engine.
Chatterjee, who is granted five stars by Refinitiv Eikon for his Apple estimate accuracy, believes the gaming business will be worth $360 billion by 2028 and music streaming will be worth $55 billion by 2025.
(Adapted from ChannelNewsAsia.com)