Apple Races Into $400 Billion Revenue Year

By Douglas A. McIntyre Published Jan 23, 7:42AM EST

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Apple Races Into $400 Billion Revenue Year — © Eric Thayer / Getty Images News via Getty Images

Investors who follow Apple Inc. (NASDAQ: AAPL | AAPL Price Prediction) said to watch for a $100 billion revenue quarter when it announces earnings. However, that may be the start of a run, fueled by the 5G and Apple’s services business that could push the year to $400 billion which would make it 75% the size of Walmart, the country’s largest company by sales, but much more profitable than the retailer.

MarketWatch editors commented:

The smartphone giant is expected to post its first-ever quarter with more than $100 billion in revenue Wednesday, driven by a strong early performance for its new iPhone 12 line as well as continued demand for Macs and iPads for remote work and school needs.

The roll-out of superfast 5G has only started. It will be available in most large cities, not just in the U.S., but also in Asia and Europe. The iPhone 12 is Apple’s first smartphone that works on this service. Over the course of the year, city after city, and region after region will offer more access to 5G, as companies like AT&T and Verizon spent tens of billions of dollars on infrastructure.

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Apple’s services business, its fastest-growing has launched businesses that could double in size this year. The most obvious is Apple TV+. It is among the smaller U.S. streaming services, which means it has some room to grow. While the increase in subscribers to Netflix has risen above 200 million, on a percentage basis, it may well not grow as quickly as Apple TV+, as Apple adds content, and leverages its hardware base as a means of distribution, particularly for people who get the service free when they buy a new iPhone, iPad, or Mac.

It also appears that overhauls of the Mac and iPad will fuel growth throughout the year as loyalists upgrade for newer features.

Apple’s success will need to be colossal to reach $400 billion in revenue. In its last fiscal, the figure was $275 billion. But, Apple is in the midst of what analysts call a “supercycle”. The pace of customer upgrades to new products has hit an unprecedented pace.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.