Services launched by Apple in 2019 have yet to generate significant revenue, according to an analyst’s model. TV +, Apple Arcade, News +, and Apple Card are not yet doing enough to help the company move away from its focus on the iPhone and other hardware.
Models show new Apple service does not bring cash
Sanford C. Bernstein’s FY2020 service revenue model shows that the App Store dominates service revenue. It reports estimated revenue of $ 15.8 billion, depending on the model. Bernstein found that among the new services, only TV + registers, generating estimated revenues of $ 2.5 billion. In contrast, Apple Music is estimated to have generated revenues of $ 5.2 billion. One of the company’s analysts, Toni Sacconaghi, said Bloomberg News that there is a “potential need for a strategic reassessment of TV +” which could include additional spending on original content.