Apple Inc. is poised to cross $400 billion-plus revenue for the first time ever in 2024, driven by double-digit growth in both its hardware and services businesses, according to Counterpoint Research.
Hardware sales for Apple should grow 3% this year after revenue declined in 2023. Growth is expected to be supported by strong performances across all key hardware categories of the iPhone, iPad, Mac, Watch, and AirPods; the latter is where the fastest growth is expected.
Tarun Pathak, Director at Counterpoint Research, said that even though the services segment, on the back of the new Apple Intelligence, may show growth, hardware is the lion's share in terms of Apple's overall revenue. "The new Apple Intelligence is generating considerable enthusiasm and is set to drive significant growth in services. However, hardware remains a major revenue driver accounting for three-fourths of Apple's global revenue," Pathak said.
It also estimates that Apple's services revenue will reach new heights, crossing more than $100 billion by 2025. From the fact that Apple Intelligence just single-handedly increases services revenue by 10-15% in the next few years, it depends on how monetizable that can become; the report estimates that services revenues will cross the hardware revenues, excluding iPhones, by the year 2025.
Apple is also going to bring substantial changes to the Indian job market. Being strongly local while focusing on production, the company is projected to generate between 500,000 and 600,000 direct and indirect jobs within the next 1-2 years. Exports of iPhones from India are on course to continue the pace of $1 billion a month, particularly driven by the government's production-linked incentive scheme. Currently, over 200,000 people work in Apple's ecosystem in India, a number set to increase again as Apple is set to reportedly make over 50 million iPhones in the country every year, moving some of the said production from China.
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