Apple’s revenues in Q2 2024 (fiscal Q3 2024) returned to growth with 5% YoY gains. The revenue growth was driven by both product and services segments. The product segments collectively grew 2% YoY, rebounding from a 10% YoY decline in Q1 2024. While the services segment continued its double-digit YoY growth (14%) for the fourth consecutive quarter, and continued to account for over one fourth of Apple’s revenue for the second consecutive quarter. The growth helped Apple’s Services revenue reach its highest ever share (28%) within Apple’s total revenues.
Commenting on the results, Varun Mishra, Senior Analyst at Counterpoint noted, “Despite iPhone revenues declining slightly year on year, there are positives within several key categories, as overall hardware and services both drive growth. iPad and Mac both showed year over year growth. While within iPhones, the favourable product mix towards Pro series continue to drive ASPs. iPad and Mac are benefiting from refreshed product lines. However, the Wearables, Home and Accessories segment continue to decline for the fourth consecutive quarter, thanks to rising competition in the smartwatch segment and a lack of refresh in the AirPods portfolio. However, important launches across hardware categories are expected in H2 2024 which can help the segment back to a positive trajectory.”
On services, Tarun Pathak, Director at Counterpoint Research noted, “Services, unsurprisingly, have delivered yet another quarter of growth. Further, Apple now has entered the GenAI era with a strong statement, and a great demonstration earlier this year at WWDC. The rising tension of Apple being late to the GenAI race has been released, however, executing its AI strategy across regions will be difficult, and there will be scrutiny on where Apple Intelligence can deliver real value. If Apple is able to key-in to strong use cases, Apple Intelligence will open new arenas for monetization, likely giving a push to an already strong flywheel of services revenue; a positive for the long term.”
Source: Counterpoint Research Apple 360
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