Market analysts expect Apple to reach a new milestone in 2024, with global revenues exceeding $400 billion for the first time, according to a new report Wednesday. It anticipates growth in Apple’s hardware and services businesses to drive that record-breaking revenue growth.
Record-breaking Apple revenue might top $400 billion in 2024
After experiencing a decline in 2023, Apple’s hardware revenues should rebound with a 3% year-over-year growth in 2024, according to a report from CounterPoint Research. New launches across all key hardware segments, including iPhone, iPad, Mac, Watch and AirPods, plus the juggernaut services division, will fuel the growth. And notably, researchers predict AirPods may rise as the year’s fastest-growing segment. In any case, this all seems to jibe with the latest quarterly earnings featuring robust iPad and services revenues.
CounterPoint projects the upward trend in hardware sales to continue into 2025. Simultaneously, Apple’s services revenue remains on track to reach unprecedented levels. Estimates suggest it will surpass the $100 billion mark in 2025, for the first time.
Hardware trumps services in this case
Photo: CounterPoint Research
CounterPoint’s research director acknowledged services growth as important, but put hardware growth in the top slot in terms of increasing revenue.
“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,” noted Counterpoint Research Director Tarun Pathak.
“After a decline in 2023, 2024 will see growth in several key hardware categories driven by multiple launches,” he added. “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.”
Services growth will continue, Apple Intelligence bump included
As Pathak noted, services should outpace hardware in terms of growth rate. And Counterpoint Research Senior Analyst Varun Mishra indicated that services revenue is likely to surpass that of all hardware categories combined by 2025, excluding iPhones.
Mishra added that Apple is exploring ways to monetize its new Apple Intelligence features. But the process may take time as the company considers which services to monetize within the new offering. Depending on Apple’s monetization strategy, Apple Intelligence could potentially boost services revenue by 10% to 15% in the coming years, Mishra said.
So as Apple continues to innovate across both hardware and services, it appears well-positioned to maintain quite a bit of market dominance.
