Apple’s revenue from gaming and music deals is expected to jump 36% to $8.2 billion (about Rs.64,000 crore) by 2025, JP Morgan said on Monday, as the device maker iPhone leverages its huge user base to drive its subscription services.
The two services are expected to have a combined subscriber base of around 180 million by 2025 – 110 million for music and 70 million for games – boosted by the rapid spread of the internet and a booming gaming industry, according to JPM analysts, led by Samik. Chatterjee.
Apple Music, which launched in 2015 and is the second-largest music streaming service after Spotify, is expected to account for a larger chunk of that revenue, bringing in around $7 billion (around Rs. 54,600 crore) by 2025. , the brokerage said.
Apple Arcade, the gaming subscription service launched in 2019, is expected to fetch $1.2 billion (about Rs. 9,400 crore).
Apple did not immediately respond to a request for comment.
The company doesn’t give a breakdown of sales for games and music services, but the overall segment, which includes App Store, Apple TV+, Arcade and Apple Music, saw revenue of $19.82 billion. dollars (about Rs. 1.54,600 crore) for the March quarter. The company is seen as Apple’s engine of expansion.
Chatterjee, who is rated five stars for the accuracy of his estimate on Apple by Refinitiv Eikon, expects the size of the gaming market to reach $360 billion (about Rs. 28,08,800 crore) by 2028 and for music streaming to reach $55 billion (about Rs. 4.29,100 crore) by 2025.
© Thomson Reuters 2022