Apple’s burgeoning Services division could make up 40 percent of the company’s gross profits by fiscal 2020, predicts Jefferies analyst Timothy O’Shea.
O’Shea says that Apple’s growing Services are the creamy sweet icing (not exactly his words) on top of the cake that is the existing “stable” iPhone business. As a result, he puts a price target of $265 a share on the Cupertino giant.