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Apple's, bulls are high on service, but there are important questions unanswered



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It may finally be time for Apple's services business to bear fruit.

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On the eve of his financial report second-quarter earnings after the close of trading on Tuesday, Apple shareholder Jason Ware with Albion Financial Group said that business services today, perhaps even more important than the rate of growth in iPhone unit.

"Right now, it's something about teens as a percentage of revenue. It gets closer to 25, 30 over the next few years. I think that the path of the majority of investors are waiting. This, of course, is what we expect, "said in an interview Ware & # 39; nd streaming show Yahoo Finance" On the motion "on Monday. "As it continues to be a more profitable margins in this business that can ultimately affect the assessment on Apple.»

Apple CEO Tim Cook said in the theater works of Steve during the event to announce new products Monday, January 25, 2019 in Cupertino, California. (AP Photo / Tony Avelar)

Business services alone could cost between $ 400 billion and $ 450 billion, writes Dan Ives with Wedbush in note Previewing Apple's quarterly numbers. "The street slowly during the recovery rating of the name of this background, despite the iPhone maturation cycle," said Ives, who has an "outperform" recommendation on the shares.

Apple's, may report a second quarter service revenue $ 11400000000, in accordance with an average of five estimates collected by Yahoo Finance. For communication, the total revenue is estimated at $ 59.6 billion, according to Bloomberg.

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There are still unresolved questions about the newly introduced services, and some analysts are asking for more information.

"Apple's still announced very little in terms of pricing strategy (outside News + for $ 9.99), or the amount allocated related new services," wrote Aaron stamens Wells Fargo, which has a "Market Perform" rating on the shares. "It is still left with more questions than answers regarding the economy of these new services and what they mean for Apple bottom line, after taking into account the fact that we believe that the expensive initial investment content."

Chris Caso Raymond James skeptic.

Caso, has a "market perform» Apple rating, says future growth will come from the 5G, but the expectations are exaggerated services. He argues that not every iPhone user will subscribe to the services offered, and indicates the number of subscribers of Apple Music (which he pegs at 50 million), against Spotify, which has just reported 100 million paid subscribers.

Apple's stock rose 31% this year.

<P class = "fabric-atom-canvas text MB (1.0em) MB (0) – see Matt (0.8em) – see" type = "text" content = "Julie & # 39 is the anchor for the Yahoo Finance. Follow her on Twitter @juleshyman."Data-reactid =" 40 ">Julie & # 39 is the anchor for the Yahoo Finance. Follow her on Twitter @juleshyman.

<P class = "fabric-atom-canvas text MB (1.0em) MB (0) – see Matt (0.8em) – see" type = "text" content = "Follow Yahoo Finance on twitter. facebook. Instagram. Flipboard. SmartNews. LinkedIn. YouTubeand Reddit."Data-reactid =" 41 ">Follow Yahoo Finance on twitter. facebook. Instagram. Flipboard. SmartNews. LinkedIn. YouTubeand Reddit.

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