Interesting assessment. (The article might be behind a paywall for some – sorry.)
Though the iPhone still contributes about two-thirds of Apple sales, the company has encouraged investors to focus on a growing services business, which includes streaming-music subscriptions, app-store sales and mobile payments. Services are expected to top $50 billion in sales by fiscal 2020 and contribute more than about 60% of Apple’s total revenue growth over five years, according to Morgan Stanley , which estimates the iPhone fueled 85% of growth during the prior five years.
The services business also is key to preserving iPhone loyalty. Just as Amazon has used media and music offerings to increase the value of Prime membership, Apple executives view its mobile payments, music service and coming video offering as ways to encourage current iPhone owners to buy future Apple handsets.
Apple has said it aims to pass 500 million paid subscriptions across its platform by 2020, up from 360 million now.