If Apple TV+ launches with the price of $9.99, for every 10 million subscribers the service gets, 20 to 25 cents could be added to earnings per share (EPS). That was according to Krish Sankar, an analyst at Cowen.
Apple TV+ To Provide Bottom Line Boost
The $9.99 price point leaked earlier this week, along with details of a November launch. Mr. Sanker said he expected Apple to add 21 million subscribers in 2021. If his predictions are correct, that would correspond to an increase of up to 53 cents per share in added EPS that year. It would indicate an addition 3.17 percent to Apple’s bottom line.
Other analysts told FactSet they expected Apple’s EPS to be $16.17 on an adjusted basis. Meanwhile, D.A. Davison & Co. analyst Tom Forte told The Street:
Spending $6 billion more suggests that [entertainment content is] a serious hobby instead of just a hobby. We’re still trying to gauge for Apple if this is a full-time job.