The Apple iPhone army could prove to be a powerful force in the tech behemoth making some serious cash from streaming content.
Wedbush tech analyst Dan Ives tells Yahoo Finance Apple (AAPL) could amass an astounding 100 million customers to its recently launched Apple TV+ streaming service within the next four years. With an installed base of iPhones of more than 900 million, Ives thinks it’s fair to say a good chunk of people could get swept into Apple’s original streaming content.
After all, Apple TV+ is featured prominently on the iPhone home screen and the $4.99 price is insanely affordable — especially when stacked up against the $12.00-plus for Netflix (NFLX).
And there is further good news for Apple investors that have already witnessed a 68% stock price surge in 2019. The profit stream from Ives’ estimated 100 million Apple TV+ subscribers — which comes to about $500 million provided Apple doesn’t lift prices —suggests that the current stock price may not be reflective of Apple’s streaming success.
“You have a massive installed base [of iPhones]. The content is lacking here, but organically they are stepping up to spend $6 billion a year [on content]. In my opinion if Apple is successful, it adds $15 to the share price,” Ives contends.
Suffice it to say, there are several big names in media standing in the way of Apple achieving maximum success with Apple TV+. On Tuesday, Disney debuted its much hyped Disney+ streaming service. AT&T (T) is coming down the pike with HBO Max. Amazon (AMZN) is an original content creating machine. And Netflix is still Netflix.
Let the streaming wars commence!