Apple Inc (NASDAQ:AAPL, ETR:APC) has launched the Apple TV+ app on Android, a move analysts at Bank of America believe could potentially open a large revenue stream for the iPhone maker.
They see the benefits going beyond an immediate revenue and earnings per share (EPS) impact.
“From Apple's standpoint, this announcement can help increase subscription revenue in the long-term by making Apple TV+ more readily available and convenient to view on the Android installed base, which is much larger than the iOS installed base,” they wrote.
“Beyond any financial benefit, it also helps make Apple more accessible to users of the Android installed base, which over time, can help increase migrations into the iOS ecosystem.”
The medium-term impact to revenues is expected to be at most $2 billion, while EPS could benefit by up to $0.02, analysts believe. Users could also subscribe to the Major League Soccer season pass, driving incremental revenue for Apple.
“While the mid-term revenue/EPS impact may not be significant, making more Apple Apps available on Android can help increase Apple brand awareness beyond the iOS ecosystem, and drive future migrations,” they wrote.
They repeated their ‘Buy’ rating on Apple and $265 price target.
Apple’s announcement comes as the iPhone maker earlier this week launched its lower-priced, AI-driven iPhone 16e.
It provides potential customers with a lower-cost entry point into the Apple ecosystem, supporting installed base growth, analysts at Goldman Sachs highlighted.
The latest model was largely in line with press reports going into the event though the starting price of $599 was higher than expected, analysts noted.
“That said, we view the iPhone 16e as a positive development that should support iPhone upgrade demand and continued growth within the Apple installed base, particularly in more price sensitive markets,” they wrote.
Goldman Sachs’ analysts also repeated a ‘Buy’ rating on Apple with a higher price target of $294.
Apple’s shares traded hands at $245 in early trade on Friday.