Apple TV+ App Launch on Android Presents Revenue Opportunity: Analysts

Apple Inc has generated excitement by launching the Apple TV+ app on Android, giving the iPhone maker a potential revenue boost, according to Bank of America analysts.

Analysts at Bank of America believe that the Apple TV+ app’s launch on Android could create a significant revenue opportunity for Apple. They see this move as more than just an immediate revenue and earnings per share impact. By making Apple TV+ more accessible on the larger Android user base than the iOS base, Apple can enhance subscription revenue in the long term. This launch not only offers financial benefits but also improves Apple’s brand accessibility to Android users, potentially leading to an increase in conversions to the iOS ecosystem over time.

The analysts anticipate a medium-term revenue impact of up to $2 billion and an EPS boost of $0.02. In addition, launching the Apple TV+ app could encourage users to subscribe to services like the Major League Soccer season pass, adding incremental revenue for Apple. While the short-term financial gains may not be significant, expanding Apple’s app ecosystem on Android can raise brand awareness outside of iOS and contribute to future migrations to Apple products.

This development from Apple coincided with the recent release of the lower-priced, AI-driven iPhone 16e. Priced at $599, the iPhone 16e offers an affordable entry point for customers into the Apple ecosystem. This model aims to support the growth of Apple’s user base, particularly in markets with price-sensitive customers, as highlighted by analysts at Goldman Sachs. The analysts reaffirmed their ‘Buy’ rating on Apple, with a target price of $294.

As of early trading on Friday, Apple’s shares were priced at $245.