As we await the launch of the latest iPhone 16 series at the upcoming Apple event, there have been quite some speculations concerning the company’s revenue taking a surge post that. Contrary to last year’s revenue, Apple’s expected revenue from iPhone 16 could take the company to new heights. It is assumed that the sales of the iPhone 16 might make the global revenues of the company cross the $ 400 billion mark. Read this blog to get a brief about how the new product launches this year can make the global tech company register new records.
How will the New Apple Product Impact Global Revenues?
Added Features
The new iPhone 16 series will be equipped with quite some features that make them desirable gadgets for people and will take Apple’s expected revenue from iPhone 16 towards a positive high. There could be an addition of the A17 Bionic Chip in the latest iPhone models that can spark the interest of the consumers. The camera enhancements which will now allow 4k recording at 120fps, a new “Capture Button”, and a new vertical camera lens arrangement are other major reasons why the iPhone 16 will be increasing the demand for all four iPhone models. The other added features include sensors, more power-efficient displays, different sizes of models, thermal design and enhanced OS which will result in a hike in its total tech revenue in 2024.
Global Reputation of Apple
Apple has a reputation that naturally drives consumer spending and that’s why Apple’s expected revenue from iPhone 16 is positively promising. The brand has built a notable presence in the global markets and is known as the top mobile and gadgets provider worldwide. Apple undoubtedly has a domination in the luxury phone market. All its products have always been the highlight in the tech industry and there won’t be anything different this time as the new products and the latest models have generated a lot of buzz and the consumers cannot wait to trust the brand once again with new and advanced features in the iPhone series.
Apple’s Ecosystem
With Apple providing the best ecosystem for consumers, people will likely spend not just on the iPhone but on other products as well. The smooth integration allows users to seamlessly utilise its products and services and stay within the Apple ecosystem. One can easily utilise Apple’s services and apps across platforms and devices for a better experience which makes it preferable for people to invest in more of its products and not just the iPhone or iPad enabling greater revenues for the company.
Pricing Strategy
It has been observed over the years that Apple’s most recent products are typically priced a little more affordably than the previous models. And it is quite probable that this will be the case once again with the 2024 product launches. Because the iPhone 16 may be more affordable and provide better value for money than the iPhone 15, Apple’s expected revenue from iPhone 16 is anticipated to generate greater revenues this time. A good pricing strategy from the company that will offer them a competitive edge over its rivals will lead to higher revenue thus taking the global earnings to another level.
The major player in Generative AI
Apple has swiftly become a leading player in the AI domain as well and that is why Apple’s expected revenue from iPhone 16 is quite high. It has been working on Generative Artificial intelligence for quite some time now and has started incorporating the same into its products and services as well. Apple has also introduced new AI integrations through Apple Intelligence in its iPhone 16 series and other hardware products. The new phones will have AI-enabled features in common apps like Safari, Siri, Messaging, and more. If rumours are to be believed, not all the iPhone models are compatible with Apple Intelligence apart from iPhone 15 Pro and Pro Max and upcoming iPhone 16 models. This can definitely intrigue the consumers making them upgrade to a new model as soon as the series is released for an enhanced iPhone experience.
New Operating System
Apple had announced a new operating system for its products which will make them faster and more efficient. The iOS, macOS Sequoia, watchOS, iPadOS, tvOS and visionOS were already unveiled on June 10, during the 2024 Worldwide Developers Conference. The latest operating system will surely attract buyers contributing to an increase in the company’s sales and earnings.
Apple’s Expected Revenue From iPhone 16
The last year’s revenue projections left the company disappointed as the revenues declined in 2023 after the release of the iPhone 15. But the opposite is expected this time as the company is all set to launch its latest catalogue of hardware gadgets which mainly include iPhone, iPad, Mac, Watch, and AirPods which are likely to increase the company’s earnings. If Counterpoint’s latest research projections are to be considered, Apple’s expected revenue from iPhone 16 and other hardware products will make it achieve the $400-billion revenue mark.
“In terms of growth rates, and now with the advent of Apple Intelligence, the services segment does seem very exciting. It is poised to grow at a much faster rate than hardware. However, in terms of absolute revenue growth, hardware remains critical in pushing the needle considering it contributes to three-fourths of Apple’s global revenues. After a decline in 2023, 2024 will see growth in several key hardware categories driven by multiple launches. Then there is also a promise of Apple Intelligence being implemented across hardware segments, which has once again created some excitement and could drive upgrades.”, says Counterpoint Research Director Tarun Pathak.
Apple leads the luxury smartphone domain and is all set to bring forth its latest launches in September’s “It’s Glowtime ”event. As the major part of the company’s revenue is derived from the sales of hardware products, roughly 75%, experts are expecting Apple’s expected revenue from iPhone 16 to grow by 3% year-on-year by the end of 2024.
Apple’s Service Revenue Growth Prediction
Apple’s financial projections have shown exponential growth in the services sector in the past and it is expected to grow even faster in the coming time. Experts believe that the services sector will be growing at a rapid speed, faster than the hardware sector in the coming years due to notable and continuous advancements in the technology and service quality from the company. Not just the Apple’s expected revenue from iPhone 16 will make the company cross 400 billion revenue in 2024 but the services sector may even make Apple cross the 100 billion mark by 2025. It is mainly due to Apple Intelligence that can truly give a boost to the company’s services revenue allowing it to gain at least a 10%-15% hike in its services revenue year-on-year basis. This will truly depend on how the company decides to monetise the elements of Apple Intelligence, which then will directly yield revenues for the company.
Conclusion
Apple has witnessed constant long-term growth in terms of revenue and reputation. The company is amongst the leading global tech firms taking charge of providing the highest quality mobiles and gadgets for consumers. Apple’s expected revenue from iPhone 16 will likely be taking the company’s growth to new records. It is anticipated that the iPhone 16 revenues will make the company cross 400 billion dollars in revenue this year in 2024. The added features like a new bionic chip, enhanced camera lenses, more helpful sensors and the addition of Generative AI features will probably drive the target audiences to buy the product even more.
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