Apple Projected to Break $400 Billion Revenue Barrier in 2024: Powered by Hardware and Services

Apple Projected to Break $400 Billion Revenue Barrier in 2024: Powered by Hardware and Services Market research firm Counterpoint Research published a blog post today (August 28th) forecasting that Apple is expected to surpass the $400 billion revenue mark for the first time in 2024. This growth will be driven by strong performances from both hardware and services

Apple Projected to Break $400 Billion Revenue Barrier in 2024: Powered by Hardware and Services

Market research firm Counterpoint Research published a blog post today (August 28th) forecasting that Apple is expected to surpass the $400 billion revenue mark for the first time in 2024. This growth will be driven by strong performances from both hardware and services.

Hardware Business: Rebound in Growth

Counterpoint Research indicated that after a decline in 2023, Apple is projected to witness a 3% year-over-year increase in hardware revenue in 2024. This growth will be mainly driven by key hardware segments like iPhones, iPads, Macs, Watches, and AirPods, which are expected to benefit from new product releases and improved market performance.

Among these, AirPods are expected to be the fastest-growing segment in 2024 in terms of year-over-year growth. Counterpoint Research predicts that this hardware growth trend will continue into 2025.

Services Business: Continued Breakthrough, Revenue Expected to Exceed All Hardware Except iPhone

Beyond the hardware rebound, Apple's services business is also poised for sustained growth in the coming years. Counterpoint Research forecasts that Apple's services revenue will cross the $100 billion milestone for the first time in 2025, setting a new historical high.

Varun Mishra, Senior Analyst at Counterpoint Research, stated: "The pace of services growth will be significantly faster than hardware. In 2025, revenue from services could potentially surpass the revenue from all hardware except the iPhone."

Apple Intelligence: A New Engine for Future Growth

Aside from traditional hardware and services, Apple is looking to monetize its "Apple Intelligence" platform.

"Apple Intelligence" refers to Apple's integration of its hardware, software, and services ecosystem to deliver a smarter and more personalized user experience. Counterpoint Research believes that monetizing Apple Intelligence will take time, as different regions will adopt features progressively, and Apple will need to continuously explore and optimize its approach.

However, once the monetization model for "Apple Intelligence" matures, it could potentially boost Apple's services revenue by 10%-15% in the coming years.

Conclusion

Apple's dual-engine approach, powered by both hardware and services, will provide a solid foundation for its future growth. Simultaneously, the gradual monetization of "Apple Intelligence" will introduce new opportunities for Apple. The company is expected to maintain a strong growth trajectory in the coming years, cementing its position as a leader in the technology sector.