Apple's Revenue on Track to Surpass $400 Billion, Driven by Hardware and Services

Apple's Revenue on Track to Surpass $400 Billion, Driven by Hardware and ServicesApple's annual revenue is projected to break the $400 billion mark in 2024, marking a new historical high driven by strong performance across all its hardware, like the iPhone, as well as its services. It is estimated that Apple's revenue in its first year of operation in 1977 was approximately $775,000

Apple's Revenue on Track to Surpass $400 Billion, Driven by Hardware and Services

Apple's annual revenue is projected to break the $400 billion mark in 2024, marking a new historical high driven by strong performance across all its hardware, like the iPhone, as well as its services. It is estimated that Apple's revenue in its first year of operation in 1977 was approximately $775,000. Nearly 50 years later, its latest official financial report shows revenue of $84.78 billion for the third quarter of 2024. Based on research and estimates by Counterpoint Research, Apple's revenue for the entire year 2024 is likely to exceed $400 billion.

This marks a resurgence following a revenue decline in 2023, driven not just by the iPhone but across all Apple hardware and services. Tarun Pathak of Counterpoint Research states, "[Apples services segment] is poised to grow at a much faster pace than hardware. However, in terms of absolute revenue growth, hardware remains the key engine for Apples growth given it accounts for three-quarters of Apples global revenue."

Pathak continues, "After a dip in 2023, multiple key hardware categories are set to grow in 2024 driven by several new product launches. Furthermore, Apple Intelligence technology is poised to be integrated across various hardware segments, which is once again generating excitement and potentially driving product upgrades."

Apple Revenue from 2008 to 2024 (Source: Counterpoint Research)

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Counterpoint Research projects that Apple's "services" business will continue its upward trajectory. The firm predicts that services revenue will surpass $100 billion for the first time by 2025. This means the "services" segment will earn more revenue than all of Apple's hardware, excluding the iPhone.

Overall, Counterpoint's estimates are based on forecasts for new product launches from Apple across iPad, Mac, Apple Watch, and AirPods, in addition to the iPhone. It believes AirPods could be the fastest-growing revenue contributor for Apple.

Looking ahead, researchers predict that Apple will directly monetize "Apple Intelligence" once it identifies elements that can be translated into revenue streams. Apple Intelligence is expected to boost services revenue by at least 10-15% over the next few years. The Apple Intelligence system is anticipated to be a key element in Apple's upcoming iPhone 16 release, scheduled for September 9th, 2024.