15 (Xinhua) — The launch of Apple TV Plus and Apple’s move into digital services could help the company more than fivefold increase advertising revenue to $11 billion a year over the next six years, JPMorgan analysts said Friday.
Analyst Samik Chatterjee raised Apple’s share price target, saying the company could use the millions of users it searches daily for its app store and Safari browser to achieve a similar growth in advertising similar to Facebook and Google’s strong advertising growth in recent years.
Mr Chatterjee said Apple had the potential to increase advertising revenue by a third a year from $2bn today to $11bn by 2025.
Apple does not currently give details of its advertising revenue.
After a tough two years of iPhone sales, the California-based company highlighted the importance of growth in its services sector, including Apple Care and Apple Music, which generated $12.51 billion in revenue last quarter.
In addition to this year’s much-anticipated flagship three-camera iPhone, the company launched a streaming TV service in September to diversify its revenue stream from the stagnant smartphone market.
“While investors are trying to identify the next service area, we think what is hidden from people’s attention and what most people don’t realize is an advertising opportunity on Apple’s fingertips,” Mr Chatterjee said. “
Chatterjee is bullish on the stock and maintains an “overweight” rating on Apple, with only a third of Wall Street analysts giving a “hold” or worse rating.