One of the reasons why Apple's stock fluctuates over the months is the seasonality of sales due to product presentation. The renewal of products occurs on certain dates of the year. For example, the release of new Macs usually coincides with a major software update in spring, or the autumn months coinciding with the new operating system and the Christmas campaign.
Therefore, Apple presents quarterly revenue growth and other more stable quarters. If this assumption is true, an increase in service revenues would destabilize quarterly billing.
Surely intentionally, but Apple is achieving that purpose, if we read the report presented by Katy Huberty from Morgan Stanley, which expects Apple's service revenue to exceed 50% of revenue growth in the next 5 years. Remember that the services include: AppleCare, Apple Music, Apple Pay and iTunes.
In figures for the last quarter presented, Apple's service revenues reached 8.500 million, 13% more than the same period last year. The analyst goes in depth to affirm the growth that is expected for services. Revenue increased by $ 30 per device on average. And on the other hand, just 18% of users spend significant money on Apple services.
Therefore, with the increase in users who spend some time on Apple services and the average increase in them, it is expected according to Huberly, that lThe share price exceeds $ 200.
Other analysts such as Amit Daryanani from RBC, maintain similar approaches and therefore it is to be expected that the forecasts will be fulfilled. He was not misled, Tim Cook's CEO said in 2016 that this business segment would grow to the size of a Fortune 1o0 company by the end of 2017.. Apple met its goal in August of that same year.
We will see the evolution of this segment once Apple presents the content it will offer on its streaming service, in which it has invested 1.000 million dollars.