Apple revenues in Q4 2024 (fiscal Q1 2025) grew 4% YoY reaching US$124 billion. This was the third consecutive quarter when both hardware and services showed growth. Hardware grew 2% YoY while the services revenues continued its double-digit growth streak for 6^th consecutive quarter, at 14% YoY. For the full calendar year, revenues eclipsed US$396Bn, inching closer towards the US$400Bn mark. Hardware revenues were $296Bn (-1% YoY) while services revenues were $99Bn (up 14%YoY).

Commenting on the results, Varun Mishra, Senior Analyst at Counterpoint noted, “Despite Greater China revenues falling 11% YoY, Apple set an all-time high revenue record. China is the second largest iPhone market globally. The revenue results show how diversified Apple’s business has become. Services, multiple product lines with different refresh cycles, emerging markets growth and favourable product mix led to revenue record. The contribution of Pro series within the 16 line-up was also higher than the 15 line-up. Mac and iPad ASPs have also grown YoY. All this has contributed to revenue growth.”

Mishra added, “Apple aggressively promoted Apple Intelligence on the iPhone 16 series. However, Apple Intelligence was not a significant driver of sales. Consumer awareness is still low, and the staggered country and language rollouts also did not help sales.

Apple Revenues by Product Categories

Source: Counterpoint Research Apple 360

Services continue to be the star of Apple’s business with continued solid growth numbers. The segment is likely to continue its growth trajectory in 2025. As penetration of iPhones increases in emerging markets, the penetration of services will follow.

Apple has been able to manage its growth trajectory well in 2024, however there are several risks to navigate in 2025. Commenting on 2025, Tarun Pathak, Research Director at Counterpoint Research noted, “2025 will be a crucial year to watch on multiple fronts. Apple Intelligence has not proved to be an upgrade driver yet. There is a lot of ground to cover in terms of value addition to users and fine tuning the offering. How Apple scales up both the offering and availability will be important for growth in 2025. Competition in China also cannot be discounted due to the resurgence of Huawei, competitive offerings from other Chinese OEMs and the lack of Apple Intelligence. The dynamics of China market will also change during the first half of 2025 driven by subsidies. Apple must navigate all of these uncertainties.”