While its iPad and Mac revenues are declining, Apple’s “services” business is just getting started. The unit that comprises products like iCloud, iTunes, Apple Music, and the App Store is now Apple’s second-largest business. Services earned the company $24.35 billion in 2016, a gain of 22% year over year.
Analysts at Amigobulls say the segment is worth $240 billion and that it’s largely the reason they’re recommending Apple stock in 2017. The biggest upside to its service sector is that there’s plenty of room to expand even further. One area Apple may be particularly keen to conquer is enterprise: With the release of the iPad Pro, Apple has shown its interested in potentially fleshing out services for businesses.