New Delhi: Apple’s global revenue is on track to surpass $400 billion for the first time next year, driven by advancements in both hardware and services. This significant growth prediction comes from a recent report by Counterpoint Research.
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According to the report, Apple’s hardware sector, which saw a downturn in 2023, is expected to rebound with a 3% year-on-year growth in 2024. Several key product lines including iPhone, iPad, Mac, Watch, and AirPods are expected to push this growth, with AirPods predicted to be the fastest-growing segment this year.
Apple Intelligence Expected to Boost Growth
Tarun Pathak, Director at Counterpoint Research, shared insights about the exciting prospects of Apple’s services segment. “With the advent of Apple Intelligence, the services segment appears very promising. It is set to grow at a much faster pace than hardware,” he stated.
While services are poised for rapid growth, hardware will remain crucial. Hardware still contributes to three-fourths of Apple’s global revenue, making it fundamental to the company’s overall financial health.
“After a decline in 2023, the year 2024 will witness growth across key hardware categories, driven by several new launches. Additionally, the promise of integrating Apple Intelligence into hardware segments has created a buzz, likely to drive various upgrades,” Pathak explained.
Expectations for Services Revenue
Services revenue is projected to continue its impressive trajectory, potentially reaching record levels by 2025 and crossing the $100 billion mark for the first time. Apple Intelligence could significantly boost services revenue by 10-15% over the coming years, depending on Apple’s monetization strategies.
In fact, by 2025, revenue generated from services may even surpass revenue from hardware, excluding iPhones, highlighting the critical role of services in Apple’s future growth strategy.
Impact on the Indian Market
In India, Apple is poised for exponential growth, set to create 500,000 to 600,000 jobs, both directly and indirectly, over the next 1-2 years. The company’s continued local production efforts are significantly benefiting from the government’s production-linked incentive (PLI) scheme.
The PLI scheme has enabled steady monthly iPhone exports of around $1 billion. The government notes that Apple alone has generated employment for over 200,000 people within its ecosystem in India, demonstrating significant growth.
Apple is strategizing to manufacture over 50 million iPhones annually in India, as part of a broader move to shift some production away from China.
In summary, with both hardware and services sectors showing strong growth prospects, and significant strides being made in markets like India, Apple is set to achieve unprecedented financial milestones in the coming years.
