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• Apple's global revenues are projected to cross $400 billion in 2024, driven by hardware and services segments.
• The introduction of Apple Intelligence, a new AI capability, is expected to boost Apple's services revenue by 10-15%.
• Apple is set to create 5-6 lakh jobs in India in the next 1-2 years, positioning India as a vital player in its global supply chain.
• By 2025, Apple's services revenue is expected to reach one-fourth of its total revenues, indicating a strategic shift towards a more service-oriented revenue stream.

Apple Inc., the multinational technology company, is on the brink of a significant milestone. According to a report by Counterpoint Research, the tech giant's global revenues are projected to cross the $400-billion mark for the first time in 2024. This growth is driven by both hardware and services segments, with all key hardware segments - iPhone, iPad, Mac, Watch, AirPods - likely to contribute to this growth. The fastest-growing segment this year is expected to be AirPods, supported by new launches.

Apple's Growth Drivers: Hardware and Services

The services segment, bolstered by the advent of Apple Intelligence, is also poised for impressive growth. Tarun Pathak, Director at Counterpoint Research, highlighted that while the services segment is set to experience faster growth rates, hardware remains pivotal to Apple's revenue. With the introduction of Apple Intelligence, the services segment is generating significant excitement and is poised for impressive growth. However, in terms of absolute revenue, hardware continues to be a major driver, contributing to three-fourths of Apple's global revenues, Pathak said.

Apple Intelligence, a new AI capability that Apple is integrating into its products, is expected to enhance the functionality and user experience of Apple devices. In terms of services, Apple Intelligence is anticipated to significantly boost Apple's services revenue by at least 10-15 percent in the coming years. This boost will come from the expansion of services that leverage AI, such as personalized experiences, improved content recommendations, and potentially new AI-driven services.

Apple's Strategic Focus on India

In addition to its global growth, Apple is also making significant strides in India. The company is set to create 5-6 lakh jobs in the coming 1-2 years in India, driven by robust local production. The iPhone exports continue to clock around $1 billion each month, thanks to the government's production-linked incentive (PLI) scheme. Apple aims to manufacture more than 50 million iPhones in India per year, as it aims to shift some of the production out from China. This strategic move not only indicates Apple's commitment to the Indian market but also positions India as a vital player in its global supply chain.

By 2026, Apple's presence in India is expected to significantly evolve, with the country likely becoming the company's third-largest market for iPhones, surpassing the UK and Japan. This growth is seen as a key factor in offsetting potential declines in other markets.

The Significance of Services Revenue

The significance of Apple's services revenue reaching one-fourth of its total revenues by 2025 lies in the diversification and resilience it brings to Apple's business model. This milestone indicates a strategic shift towards a more service-oriented revenue stream, reducing dependence on hardware sales. Factors contributing to this growth include the expansion of Apple's Services Portfolio, AI Integration, monetization strategies, international growth, customer loyalty, and recurring revenue.

In conclusion, Apple's projected growth in 2024, driven by both hardware and services segments, and its strategic focus on markets like India, underscore the company's evolution into a more comprehensive technology and services provider. The integration of advanced AI capabilities and the shift towards a more service-oriented revenue stream highlight Apple's adaptability and strategic foresight in navigating the dynamic global tech landscape. This growth trajectory positions Apple as a leader in the tech industry, setting the pace for innovation and revenue growth.