Apple's Services business alone is worth more than most countries

Apple’s Services business alone is worth more than most countries

By

Tim Cook is keeping quiet about Apple TV+ subscriber numbers for now.
Services are still killing it.
Photo: Apple

Tim Cook’s mission to make Apple’s Services business a behemoth all by itself is paying off in a big way. The latest Wall Street estimate pegs its total value at a whopping $1.5 trillion — more than a third of Apple’s total market cap.

To put that figure into perspective, it’s more than the national net worth of most countries — including Ukraine, Hungary, Peru and Qatar combined.

Apple Services going gangbusters

Cook said in early 2017 that Apple’s goal was to double the size of its Services business over the next four years. At that time, Services had just raked in a total of $24.3 billion in revenue for 2016. It’s a very different story today.

Year after year, that figure has increased pretty significantly, and in 2021, Apple’s Services business pulled in a whopping $68.4 billion. Wedbush analyst Dan Ives now sees Services as a $1.5 trillion business all by itself.

“Apple is on pace to become the first $3 trillion market cap company in 2022,” Ives noted in a report to investors. “Hitting $3 trillion will be another watershed moment for Apple as the company continues to prove the doubters wrong with the renaissance of growth story playing out in Cupertino.”

“The linchpin to Apple’s valuation re-rating remains its Services business which we believe is worth $1.5 trillion in the eyes of the Street.”

Putting $1.5 trillion into perspective

That figure is more than impressive by itself. But it’s even more staggering when you consider that only 36 countries — out of 174 — are currently worth more than that, according to Credit Suisse.

Apple’s Services business is also significantly more valuable than companies like Tesla, Meta (the owner of Facebook), Nvidia, Berkshire Hathaway, and Apple chip-maker TSMC. In fact, it’s almost worth as much as Amazon. All by itself.

It’s safe to say Services is yet another in a long line of wins for Cook since he became Apple CEO in 2011, when the company’s market cap was $348 billion. It now sits at $2.9 trillion, making Apple the most valuable company in the world.

Via: Philip Elmer-DeWitt