Bulls are very present on the services, but there are still important unanswered questions

It may be time for Apple's service companies to pay off.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Apple (AAPL) – and Apple investors – touted the opportunity represented by the & nbsp;service company& nbsp; For years. But it's only recently that Apple has announced & nbsp;reinforced offers, including Apple News Plus, Apple TV Plus and Apple Arcade. "data-reactid =" 16 "> Apple (AAPL) – and Apple's investors – have been touting the service sector opportunity for years Apple has announced enhanced offerings including Apple News Plus, Apple TV Plus and Apple Arcade.

Prior to the release of second-quarter financial results after the closing bell Tuesday, Apple's shareholder, Jason Ware, of Albion Financial Group, says the services sector is now perhaps still more crucial than the growth rate of iPhone units.

"Right now, it's something of the teenage order in terms of percentage of income. This is close to 25, 30 over the next two years. I think this is the trajectory expected by most investors. That's certainly what we expected, "Ware said in an interview with Yahoo Finance's streaming program" On the Move "on Monday. "As this continues to happen, with the more profitable margins of this business, this could ultimately have an impact on Apple's valuation."

More

The service sector alone could be worth between $ 400 billion and $ 450 billion, wrote Dan Ives of Wedbush in a note presenting quarterly figures from Apple. "The street is re-evaluating the name on this premise despite the iPhone's maturation cycle," said Ives, who has an "outperforming" recommendation on the title.

Apple could post a $ 11.4 billion business turnover in the second quarter, according to the average of the five estimates collected by Yahoo Finance. In this context, total revenues are estimated at $ 59.6 billion, according to Bloomberg.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Unanswered questions"data-reactid =" 32 ">Unanswered questions

Questions remain unanswered about newly introduced services, and some analysts ask for more details.

"Apple has so far announced very little pricing strategy (outside of News + at $ 9.99), nor the amount of spending related to these new services," wrote Aaron Rakers of Wells Fargo, which obtained the "Market Performance" rating from the market. Stock. "So far, this has left us with more questions than answers about the economics of these new services and their significance for Apple's bottom line after considering what we consider to be costly investments in initial content. "

Chris Caso of Raymond James is a skeptic.

Caso, who has a "market" rating on Apple, said that future growth would come from 5G, but that service expectations were out of date. He argues that far from all iPhone users will register for the services offered, and highlights the number of subscribers to Apple Music (which he estimates at 50 million), against Spotify, which has just recorded 100 million paid subscribers.

Apple shares rose 31% this year.

–

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Julie is an anchor for Yahoo Finance. Follow her on Twitter @juleshyman."data-reactid =" 39 ">Julie is an anchor for Yahoo Finance. Follow her on Twitter @juleshyman.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, Youtube, and reddit."data-reactid =" 40 ">Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, Youtube, and reddit.