Can a $20 monthly Siri subscription turn Apple (AAPL.US) into a "money-printing machine"? Analyst: It may generate 24 billions in annual revenue, with smart home contributing less than 1%.

According to reports from Zhihui Finance APP, Gene Munster, Managing Partner at Deepwater Asset Management, stated that Apple’s (AAPL.US) newly launched smart home products should contribute slightly less than 1% to fiscal 2027 revenue, while a more powerful Siri could unlock much larger opportunities through paid subscriptions.

On Tuesday, Apple unveiled HomeView, a smart home hub priced at $299 with a 7-inch display, alongside an upgraded HomePod mini, a new Apple TV 4K, and a range of smart home accessories developed in collaboration with LG Electronics and Schneider Electric. HomeView will go on sale on November 13.

On Tuesday, Munster posted on X: “Apple’s ‘Welcome Home’ event today should contribute slightly less than 1% to fiscal 2027 revenue.” He added that an accelerated pace of product launches is more important than immediate revenue contribution.

However, “the biggest incremental consumer opportunity in the next five years is personalized robotics, and Apple has yet to release any news in this area. Its Siri chatbot has just been launched.”

According to Koyfin estimates, Apple’s fourth fiscal quarter revenue through September is expected to grow 11% to $113.6 billion. This means fiscal 2026 sales of about $478 billion, up 15% from the previous year. Fiscal AI estimates fiscal 2027 sales will grow about 6.5% from fiscal 2026 expectations, reaching around $508 billion.

Munster Sees a Subscription Opportunity for Siri

In another post, Munster outlined Apple’s potential to monetize Siri via subscriptions, believing a more capable assistant could become a high-margin incremental driver for its services business.

He estimated that with a $20 monthly fee, 100 million paid users could generate approximately $24 billion in annual revenue, or about 6% of Apple’s revenue. He wrote: “Given how useful personal AI already is, I think the number of paid users could be much higher than that.”

In July, Apple launched a revamped Siri alongside iOS 27 for iPhone and macOS 27 for Mac. The new assistant comes with a dedicated app, enhanced conversational interactions, understanding of personal context, and on-screen awareness, allowing it to extract information from emails, messages, and photos, and perform actions across apps.

Shorter iPhone 18 Pro Delivery Times Raise Questions

Meanwhile, investors are watching for signs of weakening demand for Apple’s flagship iPhone 18 Pro. Shortened delivery times have sparked concerns about the strength of the latest upgrade cycle, with analysts citing higher prices and limited hardware improvements.

On Tuesday, Apple shares hit a new intraday high of $348.15 before closing at $341.27, up 0.09%. Reports indicated the stock briefly pushed Apple’s market capitalization above $5 trillion, although it failed to hold this milestone by the close.

Apple’s product launch on Tuesday covered smart cameras, door locks, and thermostats, broadening its presence in the connected home market.

On Stocktwits, Apple’s retail sentiment remained “bearish” for a second consecutive day on Tuesday. One trader noted, “Apple is waiting to see the store queues for Duo on Friday,” referring to iPhone Duo, which opens for pre-orders later this week.

Apple shares are up 26% year-to-date.