Analyst: Apple is on track for its Services business revenue estimates

In a note to clients — as note by AppleInsider — RBC Capital Markets analyst Amit Daryanani says Apple is on track for its Services business revenue estimates so far.

Services — Apple Music subscriptions, iTunes Music, iCloud storage plans, paid apps from Apple's App Store, and Apple Care service plans, Apple Pay, etc. — now account for 9% of Apple's overall revenue. In January Apple CEO Tim Cook said the Services category is on the verge of being a Fortune 100 business unto itself. He adds that the goal is to double the $7.17 figure over the next four years. Services now accounts for 9% of Apple’s revenue.

Daryanani says that for Apple to hit its Services projections, the company would have to grow revenues from the division by 18% over the next four years. On the average, Apple has grown Services by 21% per year, over the last five years.

The analyst estimates that the largest contributors to the Services division are the App Stores, iTunes and Apple Music, AppleCare and Apple Upgrade Program, Licensing, and the Genius Bar, in order.