The service segment of the Apple corporation could be a great stock to keep an eye on in the future. Some experts are saying that this part of the company is now worth over $240 billion. This is drawing many investors to buy it.
Apple Services is now the second largest segment of the company. The biggest is their consumer products division. The services segment has some promising other factors that make it attractive, though.
One promising feature of the services segment is that the number of iOS users is constantly increasing. As there are more users, they are going to need more services. This will increase even more as Apple develops and implements more hardware on the consumer level. There will a lot of service expansions in the future as the amount of different hardware is increased at the consumer level.
Top market analyst have named Apple's stock as one of the top tech stock picks for the upcoming year. Last year was a different story. The stock didn't see any significant losses. It mostly hovered around where it ended the year before.
Apple currently has over one billion active devices being used. They claim that this number is only set to grow. This is coming off of the holiday season which is always Apple's biggest sales period of the year. One reason they seek to grow their services division is because of the margins they experience. The margins are typically 20% higher than their hardware margins.
Apple’s Services Segment is Bigger Than We Thought