Apple Inc.

We expect revenue in its services segment (approaching 20% of Apple's overall revenue) to rise to the mid-teens percent area in fiscal 2022, after rising 25% in the 12-months-ended June 26, 2021, as Apple sells more services (App Store, Apple Care, Cloud Services, Apple Music, Advertising, Apple Pay, etc.) to its now more than one billion iPhone installed user base. We believe Apple's large iPhone user base and brand loyalty provides a captive audience to drive increased applications and digital content downloads. We view the strong performance from services as credit enhancing because it provides recurring revenue that offsets cyclical hardware sales while generating significantly higher profit margins than other Apple products. The stable outlook reflects our expectation that Apple

...iPhone upgrades and strength in the Services segment should provide support for continued revenue growth in fiscal 2022. Apple Inc.'s revenue in the 12-months-ended June 26, 2021, was up 27% year-over-year, driven by its flagship iPhone released in late 2020 but also robust growth across all its segments. We currently anticipate flattish revenue growth from iPhone sales in fiscal 2022. While we expect iPhone upgrade cycle to continue after an exceptionally strong performance in the last nine months that saw revenue grow 38% year over year, further iPhone revenue growth in fiscal 2022 will depend on the replacement rate of its iPhone install base, financing, trade-in and carrier subsidy programs, as well as availability of components in the supply chain. We expect revenue in its services segment (approaching 20% of Apple's overall revenue) to rise to the mid-teens percent area in fiscal 2022, after rising 25% in the 12-months-ended June 26, 2021, as Apple sells more services (App Store,...

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