A few days ago, Morgan Stanley analyst Katy L. Huberty made an interesting prediction regarding Apple Services. While we have all been noticing the rise of this relatively new revenue source for Apple, and we also know that there is room for a massive growth, few have been willing to make any specific predictions about when that will happen and just how much it might be. This projection will likely be one of a growing number.
The most common recent complaint about Apple, especially among the tech media and Apple enthusiasts, tends to be a perceived lack of innovation in recent years. Much of this is based on the fact that Apple made huge strides in several core computing and mobile tech categories from the late 1990s to the 2010s under the leadership of Steve Jobs.
While it is true that Apple hasn’t an iPhone or iPad-level hit since Jobs’ passing, it isn’t as if the company is standing still. The Watch has become a nice slow-burn success story, the Mac is still selling strong, iPad sales are turning around, Apple now has a fast-growing Services business, and they are closing in on becoming the first company in the world with a trillion dollar valuation, as well. However, while all of that can’t be dismissed, the lack of a slam dunk product over the last 7 years, some high-profile struggles with software, and the current negative impressions of Siri feed this lack of innovation narrative.