Market analysts count on Apple to achieve a brand new milestone in 2024, with international revenues exceeding $400 billion for the primary time, in accordance with a brand new report Wednesday. It anticipates development within the iPhone big’s {hardware} and providers companies to drive that record-breaking Apple income development.
CounterPoint Analysis: Report-breaking Apple income will high $400 billion in 2024
After experiencing a decline in 2023, Apple’s {hardware} revenues ought to rebound with a 3% year-over-year development in 2024, in accordance with a report from CounterPoint Analysis. New launches throughout all key {hardware} segments, together with iPhone, iPad, Mac, Watch and AirPods, plus the juggernaut providers division, will gas the expansion. And notably, researchers predict AirPods might rise because the yr’s fastest-growing phase. In any case, this all appears to jibe with the most recent quarterly earnings that includes sturdy iPad and providers revenues.
CounterPoint initiatives the upward pattern in {hardware} gross sales to proceed into 2025. Concurrently, Apple’s providers income stays on observe to achieve unprecedented ranges. Estimates recommend it is going to surpass the $100 billion mark in 2025, for the primary time.
{Hardware} trumps providers on this case
Photograph: CounterPoint Analysis
CounterPoint’s analysis director acknowledged providers development as necessary, however put {hardware} development within the high slot by way of growing income.
“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,” famous Counterpoint Analysis 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.”
Providers development will proceed, Apple Intelligence bump included
As Pathak famous, providers ought to outpace {hardware} by way of development charge. And Counterpoint Analysis Senior Analyst Varun Mishra indicated that providers income is prone to surpass that of all {hardware} classes mixed by 2025, excluding iPhones.
Mishra added that Apple is exploring methods to monetize its new Apple Intelligence options. However the course of might take time as the corporate considers which providers to monetize inside the new providing. Relying on Apple’s monetization technique, Apple Intelligence may probably enhance providers income by 10% to fifteen% within the coming years, Mishra stated.
In order Apple continues to innovate throughout each {hardware} and providers, it seems well-positioned to keep up fairly a little bit of market dominance.