- Apple’s annual advertising revenue could potentially hit $11 billion by 2025, according to JPMorgan analyst Samik Chatterjee
According to a JPMorgan analyst, the revenue that Apple generates from advertising could substantially rise. Specifically, Apple’s ad revenue could hit $11 billion per year by 2025 according to Reuters.
It is estimated that Apple currently hits about $2 billion from ad revenue. And with the recent Apple TV+ launch, it could create more opportunities to generate additional ad revenues in the next few years.
Apple’s revenue from advertising is lumped into “Services.” And Apple’s Services business hit $12.51 billion in the last quarter. The “Services” business also includes revenue from Apple Care and Apple Music.
“While investors are trying to identify the next big frontier for services, we believe hidden in plain sight and underappreciated by most is the advertising opportunity within Apple’s fingertips,” said JPMorgan analyst Samik Chatterjee in a report. In the report, Chatterjee maintained an “overweight” rating on Apple and he raised the share price target for Apple.
Chatterjee pointed out that Apple could leverage the millions of users on the Apple Store and Safari browser for driving more ad revenue as seen by Facebook and Google in recent years.
