Apple’s Revenue Set to Exceed $400 Billion in 2024: Growth in Hardware and Services Led by AI Innovation

Jakarta, CNBC Indonesia – Apple’s global revenue is estimated to exceed US$400 billion (Rp. 6,171 trillion) for the first time in 2024.

According to Counterpoint Research’s latest forecasts, this record number is expected to be driven by growth in the hardware and services sectors.

After seeing a decline in 2023, Apple’s hardware revenue is expected to grow 3% YoY this year.

It is likely that all major hardware categories, such as iPhone, iPad, Mac, Watch, AirPods, will lead this growth with the support of new concerts in the near future.

However, it turns out that AirPods are expected to be the fastest growing segment in 2024. Hardware growth is likely to continue into next year.

At the same time, the income of services will continue to grow and reach a high level in 2025, crossing the US $ 100 billion mark for the first time.

Counterpoint Research Director Tarun Pathak said in terms of growth, and now with the advent of Apple Intelligence, the services sector seems to be very attractive. Its growth is expected to be much faster than hardware.

In terms of revenue growth, hardware is still important in driving growth as hardware accounts for 3/4 of Apple’s global revenue.

“After a decline in 2023, this year will see growth in several key hardware categories led by several launches,” said Pathak, quoted by MacDaily, on Thursday (29/8/2024).

“Then there’s also the promise of Apple Intelligence being implemented across hardware categories, which again has created excitement and could spur improvements,” he said.

At the same time, Counterpoint Research Senior Analyst Varun Mishra said that the services sector will continue to grow much faster than hardware.

By 2025, revenue from Apple’s services division is likely to exceed hardware revenue with the exception of the iPhone.

Apple will also look to monetize Apple Intelligence. However, this will take time, as the distribution of the feature across regions will be gradual and the company will also wait to see which services they should monetize within Apple Intelligence.

“Apple Intelligence could increase services revenue by at least 10%-15% in the next few years, depending on how Apple chooses to monetize. ” he concluded.

iPhone sales slow

In recent quarters, iPhone sales have declined. The reason is that the new iPhone models do not have features and specifications that are very different from the previous generation.

On the other hand, more and more Android cell phones offer high specifications at lower prices than iPhones. In addition, competition with Chinese players is putting more pressure on iPhone sales performance.

According to Canalys data, Apple’s market share in China fell to 14% in Q2 2024, down from 15% in Q1 2024 and 16% in Q2 2023. Apple also left the ‘top 5’ position in China in Q2 2024. In fact, in the same period the same as the previous year, Apple was still in third place.

At the developer’s conference last June, Apple announced a series of AI features that they called Apple Intelligence. The artificial intelligence feature is planned to be implemented in the Siri virtual assistant as well as in the form of ChatGPT integration.

In its latest financial statement, Apple said that iPhone sales improved in Q3 2024 compared to the previous period. Apple believes AI features can entice customers to buy new iPhones amid sluggish sales in China.

(fab/fab)

iPhone 16 Pro Max appears on the surface, check out the leak