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 previously announced that a public beta of iOS 26 would be available in July, and now a more specific timeframe has surfaced.
Bloomberg's Mark Gurman today said that Apple's public betas should be released on or around Wednesday, July 23. In other words, expect the public betas of iOS 26, iPadOS 26, macOS 26, and more to be available at some point next week.
Apple will be releasing...
We may finally have a definitive list of all color options for the iPhone 17 series, ahead of the devices launching in September.
MacRumors concept
In a report for Macworld today, Filipe Espósito said he obtained an "internal document" that allegedly reveals all of the color options for the upcoming iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max models.
The report includes ...
The long wait for an Apple Watch Ultra 3 is nearly over, and a handful of new features and changes have been rumored for the device.
Below, we recap what to expect from the Apple Watch Ultra 3:Satellite connectivity for sending and receiving text messages when Wi-Fi and cellular coverage is unavailable
5G support, up from LTE on the Apple Watch Ultra 2
Likely a wide-angle OLED display that ...
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are only two months away, and there are plenty of rumors about the devices.
Below, we recap key changes rumored for the iPhone 17 Pro models.
Latest Rumors
These rumors surfaced in June and July:A redesigned Dynamic Island: It has been rumored that all iPhone 17 models will have a redesigned Dynamic Island interface — it might ...
A new Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device.
Below, we recap what to expect from the next Apple TV, according to rumors.
Rumors
Faster Wi-Fi Support
The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports ...
Apple today said its store at the Westfield Hornsby shopping mall, in Hornsby, Australia, will be permanently closing in October.
Apple Hornsby
In a statement shared with Australian tech news website EFTM (via Reddit), Apple said that it has decided not to renew its lease at Westfield Hornsby. Apple said all affected retail employees will be given the opportunity to work at Apple's nearby...
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive.
If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
