Will Apple Music and Gaming Bring About $1.8+ Billion Revenue by 2025?
The latest report by JP Morgan analysts substantiates the estimated future revenue from Apple.
The latest report from JP Morgan states that Apple Inc’s revenue from gaming and music offerings is expected to jump 36% to $8.2 Billion by 2025. The report substantiates the fact that the tech giant taps its huge user base to drive its subscription services.
Apple’s Estimated Revenue Jump
On 13 June 2022, JP Morgan analysts, led by Samik Chatterjee, produced the reports on Apple Inc’s revenue surge. It further states that the two services are likely to have a combined subscriber base of about 180 Million by 2025. While 110 Million users are predicted to come from Apple’s music services, the remaining 70 Million will be derived from the iPhone makers’ gaming services. This surge is reported to be boosted by the rapid spread of the internet and the booming gaming industry, as reported by the JPM analysts.
The brokerage further said that Apple Music is expected to account for a bigger chunk of that revenue—ranking at about $7 Billion by 2025. On the other hand, Apple Arcade is estimated to pull in $1.2 Billion. When requested for a comment regarding the revenue jump, Apple Inc did not provide a reply. This is more because Apple does not provide a sales breakup for gaming and music services.
Expansion of the Music and Gaming Industries
However, the company has given an overall segment (including App Store, Apple TV+, Arcade as well as Apple Music), with reported revenue of $19.82 Billion for the March quarter of 2022. In fact, the business is perceived as Apple’s engine for expansion.
According to Chatterjee (who is rated five stars for his estimate accuracy on Apple by Refinitiv Eikon), the gaming-market size is expected to hit $360 Billion by 2028, whereas the music streaming industry is estimated to reach $55 Billion by the year 2025.
Apple Music and Apple Arcade
Apple Music was launched by Apple Inc in 2015. Following Spotify Technology, it is the second-largest music-streaming service in the world. According to a report released in January 2022, Apple Music accounted for 15% of the global music streaming market—although it followed the streaming giant Spotify which held more than 30% of the market.
Although Apple Music debuted much later in 2015, the app benefits from the company’s history with iTunes which was launched in 2001, followed by the iTunes Music Store in 2003.
Apple Arcade is a gaming subscription service that was launched by Apple in 2019. Starting at $4.99 per month, the service provides Apple users access to various curated and high-quality game titles that come without ads or any additional purchases. Arcade has been considered a great alternative to the typical mobile games, most of which are flooded with in-game ads including in-gaming purchases and rudimentary gameplay.
The service is not limited to iPhone or iPad users. Users can also play games on Apple TV and the Mac. In addition, users can also share the subscription among six people via Apple’s Family Sharing feature.
Shridhar Itolikar is a technology content writer. He is based in India and has been working as a content writer since 2018. Shridhar has been writing content in the tech domain since May 2019 and can’t get enough of it. He discovered his love for writing, he went on to improve this skill set (and hasn’t stopped since).