Apple Poised to Break $400 Billion Revenue Barrier in 2024, Driven by iPhone 16 Series and "Apple Intelligence"

Apple Poised to Break $400 Billion Revenue Barrier in 2024, Driven by iPhone 16 Series and "Apple Intelligence"Apple is gearing up to unveil its highly anticipated iPhone 16 series at its September launch event, and strong demand for the new iPhones is expected to propel the company to record revenues in 2024. According to a recent report by Counterpoint Research, Apple's revenue is projected to breach the $400 billion mark for the first time in 2024, fueled by significant growth in both its hardware and services segments

Apple Poised to Break $400 Billion Revenue Barrier in 2024, Driven by iPhone 16 Series and "Apple Intelligence"

Apple is gearing up to unveil its highly anticipated iPhone 16 series at its September launch event, and strong demand for the new iPhones is expected to propel the company to record revenues in 2024. According to a recent report by Counterpoint Research, Apple's revenue is projected to breach the $400 billion mark for the first time in 2024, fueled by significant growth in both its hardware and services segments.

Analysts believe the iPhone 16 series and "Apple Intelligence" will be key drivers in achieving this milestone. Despite recent announcements of layoffs, Apple's latest financial report paints a positive picture for the company's future.

Apple reported $85.8 billion in revenue for the third quarter of 2024, exceeding Wall Street expectations. iPhone sales generated $39.3 billion in revenue, while services revenue reached $24.2 billion. Combined revenue from Mac, iPad, wearables, home, and accessories also approached $22.7 billion, resulting in a net income of $21.45 billion for the quarter.

Counterpoint Research predicts a 3% year-over-year growth in Apple's hardware business in 2024, which comprises iPhone, iPad, Mac, Watch, and AirPods, with AirPods expected to be the fastest-growing segment. As for services revenue, the research firm anticipates it to surpass the $100 billion mark for the first time in 2025.

Apple's services include music, movies, TV shows, stickers, books, and app purchases. Tarun Pathak, Research Director at Counterpoint, commented, "From a growth rate perspective, now with Apple Intelligence coming in, the services area is really exciting. It's going to grow much faster than hardware. However, in terms of absolute revenue growth, hardware is still the key driver for Apple, as it accounts for three-quarters of its global revenue."

Counterpoint also believes Apple might monetize its Apple Intelligence services by potentially locking some of its best features behind a subscription model.

In conclusion, Apple's robust growth trajectory in 2024 is largely attributed to the market performance of the iPhone 16 series and the potential of "Apple Intelligence." Moving forward, Apple will continue its focus on both hardware and services, further extending its lead in the tech industry.