Top

Despite Legal and Regulatory Risks, Services to Likely Hit One-fourth of Apple Revenues in 2025

  • We expect Apple’s services revenue to cross the $100-billion mark to account for one-fourth of its revenue by 2025.
  • Antitrust lawsuits in the US and EU pressure are key risk factors, but they are likely to play out over a longer term.
  • While the services segment is growing, iPhones will continue to capture around half of Apple’s total revenue.
  • The growth in hardware and services will help Apple breach the $400-billion revenue mark for the first time in 2024.

Seoul, Beijing, Boston, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi – April 2, 2024

Apple’s services segment is likely to capture one-fourth of the company’s total revenue in 2025, according to Counterpoint Research’s Apple 360 service. 2025 will also mark the year when services revenue crosses the $100-billion-per-year mark for the first time. Further, the company should breach the $400-billion revenue mark for the first time in 2024, supported by the growth of its hardware and services segments.

Apple Revenue Share by Category

Sources: Company, Counterpoint Research

Commenting on recent legal and regulatory issues faced by Apple in the US and EU, Research Director Jeff Fieldhack said, “We know there is risk, but it is early stages right now. So, we are not expecting any impact to monetization of the iPhone installed base, at least not in the medium term.”

“As regards Apple’s relative silence around its AI strategy, well, that has now changed with the big hint dropped on Tuesday around the announcement for June 10 WWDC. Am I expecting to see something special?  I wouldn’t be surprised – that’s Apple’s M.O.”

Apple’s growing installed base, which is over 2 billion devices currently, has created a flywheel effect on the growth of the brand’s services business. Apple Store, followed by Apple Care+, Apple Music and a round-up Apple One subscription, has driven inflection points for Apple with a growing device base.

Launched in 2023, AppleOne could become the single largest contributor to Apple’s services revenue. The tight software-hardware integration providing a unified and homogenous software and services experience to consumers, and a large installed base of premium consumers create a competitive advantage for Apple.

iPhones will continue to capture half of Apple’s revenue and remain the centerpiece of Apple’s ecosystem. Premiumization trends and growth in emerging markets are benefiting Apple’s iPhone business, with the latter likely to offset some of the volume declines seen in China earlier this year.

iPhone growth in emerging markets should also help with future growth for other Apple products as many consumers will be new users entering the iOS ecosystem. As these consumers become more dependent on their iPhones, they are likely to spend more on other Apple products.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Related Posts

Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.