Apple is expanding its Services business with new features and strong competition

From Nasdaq: 2025-06-26 12:42:00

Apple is boosting its Services offerings, with over 1 billion paid subscribers and a 11.6% revenue growth in the fiscal second quarter. New features like AutoMix and Lyrics Translation in Apple Music, Sing for Apple TV, and Apple Wallet updates are expected to drive growth. Apple Maps now includes expert rankings and insights for easier navigation.

Competitors like Netflix and Disney are strong contenders in the Services space. Netflix aims to double revenues by 2030, with a diverse content strategy and high member engagement. Disney has a massive global audience of 157 million users, benefiting from strong Domestic Parks & Experiences revenues.

Apple’s stock has dropped 19.5% YTD, trading at a premium with a forward Price/Sales of 7.25X. The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings is $1.41 per share, with a 0.71% year-over-year growth. The consensus estimate for fiscal 2025 earnings is $7.11 per share, indicating 5.33% year-over-year growth.

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Read more at Nasdaq: Apple Continues to Expand Services Business: What’s the Path Ahead?