Macquarie Says Apple Inc.'s Software And Services Business Will Be Critical To EBIT Metrics In Coming Years

Apple Inc. AAPL is back in the headlines as the company is set to host a live event on September 9.

The Street is expecting the announcement of the iWatch alongside two new iPhones. As Apple matures further, Macquarie analysts focused on per-user dollar levels and EBIT metrics tied to the "software and services opportunity." Much of the hype around Apple's announcement ties to investors, traders and end-user anticipating a merging of HealthKit and some form of smart-wearable device.

Macquarie believes that iTunes is important to Apple's bottom line even though it is expected to remain below 20 percent of revenues for the coming years, saying "..we think that while iTunes/Software/Services will remain less than 20% of revenue for many years, its contribution to EBIT growth is already significant".

In the longer run, Macquarie said iTunes/Software/Services will be aided by App sales in achieving 30 percent to 40 percent of total EBIT by 2020.

Analyzing gross dollar-per-user basis, Macquare said:

"AAPL’s iTunes/Software/Services business generated ~$35 per user in 2013; that is nearly equal to Google, more than 5x higher than FB, and nearly 13x higher than TWTR per user."

Moving on from the hardware angle, Macquarie believes the value going forward in Apple will come from its software and services opportunities. As payment processing developed further within the company and App sales continue to grow, Apple will be more comparable to online-focused companies like Facebook and Google.

Nearing the final hour of trading, shares of Apple were trading up 0.65 percent to $98.76.