Morgan Stanley Predicts Apple TV+ Could Be a $9 Billion Business by 2025
Apple's services business is set to grow by 20 percent next year, boosted by its forthcoming Apple TV+ streaming service, according to the latest predictions by Morgan Stanley analyst Katy Huberty (via CNBC).
In a new investor note, Huberty predicts that Apple TV+ will grow into a $9 billion business by 2025, despite increasing competition in the streaming market and even if only 1 in every 10 Apple user subscribes to the service:
"With an attractive price point at $4.99/month, and wide initial distribution to the Apple installed base via the bundled free year offer, we estimate Apple TV+ can become a $9B revenue business with 136M paid subscribers by FY25, assuming just 1 in every 10 Apple user pays for the Service by FY25."
Huberty also notes that for Apple TV+ to have a more material impact on its near term estimates, Morgan Stanley would have to assume: "1) Apple TV+ production costs are significantly higher at the launch of the Service, and/or 2) more users redeem the Apple 12 month free offer with the purchase of a device."
Launching on November 1, Apple TV+ costs $4.99 per month and will be available on the Apple TV app on iPhone, iPad, Apple TV, iPod touch, Mac and other platforms, including online via www.tv.apple.com. Customers who purchase any new iPhone, iPad, Apple TV, Mac or iPod touch starting September 10, 2019, are eligible for one year of Apple TV+ for free.
Morgan Stanley also raised its target price for Apple stock from $247 to $289. That works out as a 17 percent increase based on its outlook for Apple TV+, as well as its prediction that sales will return "to growth as replacement cycles peak" in 2020 as users upgrade to Apple's 5G-enabled iPhones.
Popular Stories
Apple is not expected to release a standard iPhone 18 model this year, according to a growing number of reports that suggest the company is planning a significant change to its long-standing annual iPhone launch cycle.
Despite the immense success of the iPhone 17 in 2025, the iPhone 18 is not expected to arrive until the spring of 2027, leaving the iPhone 17 in the lineup as the latest...
Language learning app Duolingo has apparently been using the iPhone's Live Activity feature to display ads on the Lock Screen and the Dynamic Island, which violates Apple's design guidelines.
According to multiple reports on Reddit, the Duolingo app has been displaying an ad for a "Super offer," which is Duolingo's paid subscription option.
Apple's guidelines for Live Activity state that...
The company behind the BlackBerry-like Clicks Keyboard accessory for the iPhone today unveiled a new Android 16 smartphone called the Clicks Communicator.
The purpose-built device is designed to be used as a second phone alongside your iPhone, with the intended focus being communication over content consumption. It runs a custom Android launcher that offers a curated selection of messaging...
Apple plans to introduce a 12.9-inch MacBook in spring 2026, according to TrendForce.
In a press release this week, the Taiwanese research firm said this MacBook will be aimed at the entry-level to mid-range market, with "competitive pricing."
TrendForce did not share any further details about this MacBook, but the information that it shared lines up with several rumors about a more...
Apple is planning to release a low-cost MacBook in 2026, which will apparently compete with more affordable Chromebooks and Windows PCs. Apple's most affordable Mac right now is the $999 MacBook Air, and the upcoming low-cost MacBook is expected to be cheaper. Here's what we know about the low-cost MacBook so far.
Size
Rumors suggest the low-cost MacBook will have a display that's around 13 ...
Apple today announced a number of updates to Apple Fitness+ and activity with the Apple Watch.
The key announcements include:
New Year limited-edition award: Users can win the award by closing all three Activity Rings for seven days in a row in January.
"Quit Quitting" Strava challenge: Available in Strava throughout January, users who log 12 workouts anytime in the month will win an ...
Apple hasn't updated the Mac Pro since 2023, and according to recent rumors, there's no update coming in the near future. In fact, Apple might be finished with the Mac Pro.
Bloomberg recently said that the Mac Pro is "on the back burner" and has been "largely written off" by Apple. Apple apparently views the more compact Mac Studio as the ideal high-end pro-level desktop, and it has almost...
