FILE PHOTO: Tim Cook, CEO of Apple, talks about Apple TV during a launch event in san francisco, California, USA, September 12, 2017. REUTERS/Stephen Lam/File Photo
(Reuters) – The launch of the Apple TV, when combined with Apple Inc’s entry into digital services, to assist the company in increasing the revenue from advertising of more than five-fold to $11 billion per year over the next six years, analysts from JP Morgan said on Friday.
Raising its share price target for the iPhone maker, an analyst Samik Chatterjee said the company had not been able to take advantage of the millions of users who search for in the App Store and the Safari browser, and on a daily basis for the generation of solar growth thanks to Facebook and Google in the last couple of years.
He said that the company’s ability to raise revenue by a third each year, an estimated $2 billion currently to $11 billion by the year 2025. Apple currently does not provide any detailed information about the advertising revenue.
Through two difficult years, the iPhone’s sales, the California-based firm has pointed to the importance of the growth in the services sector, which already have Apple Care and the Apple of Music, with a revenue of $12.51 billion in the last quarter of the year.
Along with the long-awaited launch of its flagship product, the triple-camera iPhone this year, it rolled out a streaming-TELEVISION service in September, in an effort to promote the diversification of income sources away from a decline in the market for smartphones and tablets.
“While investors are trying to be the next big frontier for it services, we are firm believers in the view of the hidden and under-valued by the majority of the advertising opportunity within the company’s tips of your fingers,” Chatterjee said.
He continued its bullish ‘overweight’ rating on Apple. Only about a third of Wall Street analysts currently rate the company “hold” or worse.
Reports the Aakash Jagadeesh Babu in Bengaluru; editing by Patrick Graham