Apple has weathered the health crisis remarkably well. While some companies have lost a lot at the height of the pandemic, the Cupertino company has indeed seen its stock market valuation soar to cross the 3 trillion dollar mark recently. Its revenues have also increased significantly, although their growth has sometimes been hampered by certain delays in the supply chain.
Apple has a war chest to prepare for the future
The sequel also looks very promising for the Apple brand, according to the forecasts of Scott Galloway, a professor of marketing at New York University. According to the researchers’ estimates, Apple could thus exceed 1000 billion dollars in annual revenue by 2030, against 366 billion today.
How could the Tech giant go about it? The researcher explains first of all that the company has the means to prepare its future well with 93 billion dollars in its coffers ready to be invested, as well as 22 billion dollars of research and development, which is a considerable amount and weighs more than the GDP of some countries.
It is therefore 126 billion dollars per year that can be spent to design new products and activities, or to acquire other companies, even if the competition authorities keep an eye on things.
With this war chest, Apple could invest in areas such as consumer banking. The company already has Apple Pay and Apple Card, and can start from these bases to offer a real banking service to its customers and in particular an account which would take the name Apple Cash. We can also imagine certain financial services in addition, such as loans. According to the scientist, this Apple bank would be able to bring in up to 75 billion dollars per year.
Apple Car, health, cloud… as sources of revenue?
But that’s not all, Apple could also generate new revenues, up to 50 billion dollars per year thanks to advertising. However, it is a strategy to be handled with tweezers and which could blur the image of the company which insists on its respect for confidentiality and personal data.
By developing new health services on the iPhone, the Cupertino company is also able to generate 17 billion dollars. Scott Galloway is even more specific by suggesting the tech giant to buy Peloton, the manufacturer of exercise bikes, whose value has dropped a lot lately. By offering the company for 10 billion dollars, Apple could transform it into a profitable business that brings in 20 billion dollars a year.
The inventory continues and the researcher thus estimates that Apple can develop in the home automation sector thanks to its strike force in research and development and reap an additional 20 billion dollars each year.
He mentions the Apple Car, an old sea serpent still not formalized by the company. This electric vehicle could bring in up to $50 billion a year. Similarly, the Cupertino company could invest in its infrastructure and in its own data centers to free itself from the services of Amazon and Google. It would then become their competitor by offering its services to companies. All B2B activities can generate $50 billion per year by 2030.
These are of course assumptions and extrapolations but there is no doubt that someone at Apple will read these tips carefully and that this forward-looking work will feed the thinking of the company’s decision-makers. You can read on your side this document very rich and informative on the general situation of the Tech giant.