Apple Services to Overtake iPhone Revenue by 2024: Report

Apple services will likely be doing better than the actual iPhone by the next 4 years. Throwback to the year 2017 in its first quartile the company’s smartphone had earned a whopping 78 million units worldwide. Apple made a smart move and choose to focus on selling its services to its 728 million iPhone users worldwide. This resulted in it getting revenue of $53.77 billion from $25 billion by 2020. It achieved this by making its smartphone users sign up to make recurring monthly payments for subscription services such as Apple Music, Apple News+, and more.

Forbes is predicting that the company is likely to generate revenue more from its services than its phone by 2024. Seeing the current situation and the changing market scenario, this may be likely a possibility. But it’s not just the phone that saw a downfall in revenue but its services also saw a decline to 11% a year which was a 22% growth rate in the last 4 years.

Apple iPhone Sales

iPhone sales are also gradually expected to grow in the next 5 years will yield approximately $167 billion with a growth rate of 5% per annum. It also beat the company’s hardware products by bringing a profit margin of 66% while the hardware got a profit margin of 31.5%. The gross profit for the services in the fiscal year 2024 is expected to be $54 billion that would be higher than that of iPhone’s $53 billion gross profit for the same year.

These numbers could also be affected by the Justice Department’s suit against Google. It is said that Google is paying Apple to be the default search engine on iPhone models and if the Justice Department decides to go against it then this will hamper the services growth rate.