Services launched by Apple in 2019 have yet to generate any meaningful revenue, according to one analyst’s model. TV+, Apple Arcade, News+ and the Apple Card are not yet doing enough to help the company move away from its focus on the iPhone and other hardware.
Models Shows New Apple Service Not Bringing in Cash
Sanford C. Bernstein’s FY2020 Services Revenue Model shows that it is the App Store which dominates services revenue. It brings an estimated $15.8bn in revenue, according to the model. Bernstein found that of the newer services, only TV+ registers, generating an estimated $2.5bn in revenue. By contrast, Apple Music is estimated to have generated revenue of $5.2bn. One of the company’s analysts, Toni Sacconaghi, told Bloomberg News that there’s “potential need for a strategic reevaluation of TV+,” which could include spending more on original content.