Market
31
Jan
2025
2
min read

Apple sees strong Q4 2024 revenue growth fueled by services and Apple iPhones

Apple reported a 4% year-over-year (YoY) increase in revenue for Q4 2024 (fiscal Q1 2025), reaching €114 billion. This marks the third consecutive quarter of growth in both hardware and services. Hardware revenues grew 2% YoY, while services revenues continued their six-quarter double-digit growth streak, rising by 14% YoY. For the full calendar year, Apple generated €365 billion in revenue, inching closer to the €369 billion milestone. Hardware revenues amounted to €273 billion (-1% YoY), whereas services contributed €91 billion (+14% YoY). What is interesting for the global secondary market are obviously the hardware sales, especially those of Apple iPhone, and the service revenue. Well, relatively good news as both increased. More new Apple iPhones sold means quite simply more used devices available for the used and refurbished device industry.

Apple iPhone and services lead the way 

Apple's hardware segment, especially iPhone sales, continues to play a pivotal role in its revenue performance. According to Varun Mishra, Senior Analyst at Counterpoint Research, "Despite Greater China revenues falling 11% YoY, Apple set an all-time high revenue record. The diversification of Apple’s business, including services, multiple product lines with different refresh cycles, and growth in emerging markets, all contributed to this milestone."

Apple Intelligence and China challenges 

Apple Intelligence was a key marketing focus for the Apple iPhone 16 series, but it did not significantly drive sales. So, the long awaited super upgrade cycle did not materialize. Mishra noted that consumer awareness remains low, and staggered country and language rollouts have slowed adoption. However, the services sector remains Apple's primary growth driver and is expected to continue its upward trajectory in 2025. As iPhone adoption increases in emerging markets, service penetration is likely to follow.

Apple's growth in 2024 was strong, but 2025 presents several challenges. Tarun Pathak, Research Director at Counterpoint Research, pointed out that Apple Intelligence has yet to become a compelling upgrade driver. He also emphasized the importance of scaling its offering and availability. Meanwhile, competition in China remains intense, particularly with Huawei's resurgence and competitive local OEM offerings. Additionally, government subsidies in China could shift market dynamics in early 2025. Apple will need to navigate these uncertainties to sustain its growth trajectory.

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