Apple could hit $1 trillion in annual revenue by 2030 with continued business expansion through acquisitions and investments in areas including banking, research, healthcare and Apple Car.
According to Scott Galloway, a professor at New York University, this milestone will be reached in less than 10 years. As of 2021, Apple has reached $366 billion in revenue, or just over a third of a trillion. However, Amazon and Walmart have higher numbers, with $470 billion and $559 billion in annual revenue, respectively.
To reach $1 trillion in revenue by 2030, Apple will need to make some investments and forcefully enter new business areas. To develop, the company needs capital to invest above all in research and development, but on this point Apple has never had any particular problems. Add to that the fact that the company could use its shares as a bargaining chip to make new strategic acquisitions in the years to come.
According to Galloway, the first place Apple needs to invest in is consumer banking, as the company has both the capital and the confidence that customers demand when choosing a new bank, not to mention the Apple Pay business. and existing Apple Card. Apple may offer an initial Apple Cash account, in addition to other standard banking features, before expanding into loans, investments and mortgages.
While major US banks handle around $35 billion in annual consumer revenue, the professor believes an Apple Bank could become a $75 billion business by 2030.
Online search is also an interesting path, which would start with Apple losing annual revenue from Google to have its default search engine on Safari. However, it would be a “strategic unlock”, as Galloway believes that keeping searches within the Apple ecosystem and results integrated with contacts, calendars and other user information could make the company even more profitable. With this bold move, Apple is expected to manage an additional $50 billion in revenue by 2030.
As for healthcare, another area the company has been in for some time, Galloway speculates that Apple could activate healthcare services and earn $17 billion a year by becoming a “built-in and default healthcare provider on iPhone”. Translated into practical terms, this would mean that Apple will deliver all health items related to its ecosystem directly to the user’s doorstep. Between services and deliveries of health products, annual revenues could reach 75 billion dollars.
On the fitness side, Galloway suggests that Apple spend $10 billion to acquire Peleton and also transform itself into a direct-selling store for fitness-related products. Expected income? $20 billion by 2030.
Another revenue opportunity is related to the home automation sector, where Apple is already present with the HomeKit platform. Also in this case, by starting to sell hardware products related to the smart home, revenues of $20 billion per year are expected.
Then we come to the Apple Car, with Apple becoming a direct competitor to Tesla and other automakers. Galloway has little doubt about this and estimates that Apple’s first self-driving electric car will arrive shortly before 2020, earning Apple about $50 billion in revenue annually.
Educational and digital document services could also add an additional $10 billion in revenue by 2030. Then there are business-to-business operations like payment processing, thanks to the previously announced “Tap to Pay” functionality that lets you allows you to receive payments directly. on iPhone.
Finally, there’s the $10 billion Apple wants to spend on infrastructure, including its own data centers that will allow the company to move away from Google and Amazon Web Services. Within B2B, Galloway says it could become a $50 billion segment within eight years.