Introduction
Apple is on track to achieve a historic milestone in 2024, with global revenue expected to exceed $400 billion for the first time.
Apple is set to achieve record-breaking global revenues, expected to surpass $400 billion in 2024. This growth will stem from significant contributions across both hardware and services segments.
Apple’s hardware revenue will increase by 3% year-over-year in 2024 after a dip in 2023. Key products like the iPhone, iPad, Mac, Watch, and AirPods will drive this growth, showcasing a strong rebound.
Services revenue will see a major surge, with forecasts predicting it will exceed $100 billion by 2025. The expansion of Apple’s service offerings, alongside the integration of Apple Intelligence, will play a crucial role in this upward trajectory.
By 2025, services will likely generate more revenue than hardware, excluding iPhones. This shift underscores Apple’s strategic move towards a service-oriented business model.
Apple Intelligence will further enhance both hardware upgrades and service revenue, with projections indicating a potential 10%-15% increase in services revenue over the coming years.
Hardware Revenue Forecast
The hardware segment, with flagship products like the iPhone and AirPods, will drive significant revenue growth.
New product launches and updates will boost consumer interest and sales. AirPods will likely be the fastest-growing hardware segment in 2024.
This hardware momentum will continue into 2025, strengthening Apple’s market position.
Services Revenue Expansion
Apple will achieve record-breaking revenue on the services side. In 2025, services revenue will exceed $100 billion for the first time.
Expanding service offerings and integrating Apple Intelligence will drive this growth and enhance service monetization.
Expert Insights
Tarun Pathak, Director at Counterpoint Research, commented on the expected growth:
“The services segment, buoyed by innovations like Apple Intelligence, is likely to grow at a faster rate compared to hardware. Despite this, hardware remains crucial, contributing to three-fourths of Apple’s global revenues. The recovery in hardware revenue in 2024, coupled with anticipated launches and advancements, is crucial for Apple’s financial performance.”
Pathak highlighted the role of Apple Intelligence in driving hardware upgrades and consumer excitement. “Apple Intelligence promises to invigorate hardware categories, potentially leading to significant upgrades and driving further revenue growth,” he added.
Conclusion
Apple’s anticipated revenue growth in 2024 highlights the company’s strong position in both hardware and services markets.
As Apple approaches the $400 billion revenue mark, its strategic investments in product innovation and service expansion will be crucial in sustaining this growth.
With a focus on integrating Apple Intelligence and leveraging new hardware launches, Apple is well-positioned to achieve significant milestones in the coming years.
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