In fact, the note estimates that Apple services revenue could more than double by 2020 to $53 billion. Apple bragged that it managed to book $21 billion in services revenue last year, while alluding that that figure by itself was larger than some of its competitors. (Facebook reported $17.9 billion in revenue for 2015, for example.)
But it’s not just the size of Apple’s installed base that makes its services an attractive investment. Apple users are significantly richer than non-Apple users. According to Credit Suisse:
- Emerging market Apple users have 50% higher per-capita incomes
- Apple users use their devices more often with 63% of mobile traffic coming from Apple devices compared to 29% from Android
- Apple users tend to replace their old devices regularly
- Apple enjoys a nearly 90% retention rate among its customers
A very insightful way to look at Apple. (And not an entirely new one, though just not popular yet: Industry analysts like Horace Dediu or Ben Bajarin are looking at Apple’s future through a similar lens.)
