Apple’s global revenues are expected to exceed $400-billion mark for the first time in 2024, according to Counterpoint Research’s latest projections. This record number is expected to be driven by growth in both hardware and services segments.
This growth is attributed to high sales in both hardware and services departments.
Having experienced four consecutive quarters of declining revenue last year, Apple is expected to see a 3% annual growth in its hardware division in 2024.
In FY23, the iPhone-maker reported $298 billion in hardware sales. All the key hardware segments – iPhone, iPad, Mac, Watch, AirPods – are likely to drive this growth supported by new launches.
Further, AirPods could emerge as the fastest-growing segment in 2024, which is slated to be announced on September 9, along with the iPhone 16 series and new Apple Watch models.
The growth in hardware is likely to continue in 2025 as well, the report mentioned.
Meanwhile, revenue from its services will continue to grow and reach record levels in 2025, crossing the $100-billion mark for the first time. In FY23, Apple recorded revenue of $85.2 billion from the segment.
Additionally, the introduction of Apple Intelligence, the suite of artificial intelligence features for Apple products, is also expected to increase the sales.
Counterpoint Research Director Tarun Pathak said believes that in terms of growth rates, and now with the advent of Apple Intelligence, the services segment does seem very exciting. It is poised to grow at a much faster rate than hardware. However, in terms of absolute revenue growth, hardware remains critical in pushing the needle considering it contributes to three-fourths of Apple’s global revenues.
“After a decline in 2023, 2024 will see growth in several key hardware categories driven by multiple launches. Then there is also a promise of Apple Intelligence being implemented across hardware segments, which has once again created some excitement and could drive upgrades,” he says.
Senior Analyst Varun Mishra adds that Apple will also look to monetise Apple Intelligence. However, it will take time, considering the launch of features across regions would be staggered and Apple will also wait to understand which services should be monetised within Apple Intelligence. Apple Intelligence could boost the services revenue by at least 10%-15% in coming years depending on how Apple chooses to monetise.
It is to be noted that services, which is touted as the growth engine for the company, reportedly saw a job cut of about 100 jobs in its digital services group.
The layoffs included some engineering roles, and the biggest cuts were made to the service teams responsible for the Apple Books app, Apple Bookstore and Apple News.