Apple’s Expansion Beyond Smartphones: MacBooks and iPads Leading the Way
Apple is set to experience significant growth in its non-handset categories, including MacBooks, iPads, smartwatches, and True Wireless Stereo (TWS) devices. As demand for iPhones remains strong in India, Apple’s other product lines are also gaining momentum. According to data from Counterpoint, Apple’s non-smartphone revenue is projected to reach $1.3 billion in 2024, reflecting 14% year-on-year growth. Canalys data, on the other hand, estimates that revenue from MacBooks and Mac PCs alone will hit $1.1 billion in 2024, up from $800 million in 2023.
Apple’s Diverse Ecosystem Fuels Growth
Apple’s comprehensive ecosystem, encompassing products and services from chips to retail, positions it uniquely in the market. Anshika Jain, an analyst at Counterpoint Research, highlighted this advantage: “As consumer interest in high-end devices grows, we will see Apple’s resurgence in categories beyond smartphones, such as MacBooks, iPads, smartwatches, and TWS.”
Projected Shipment Increases
Counterpoint estimates that Mac shipments will rise by 15% and iPad shipments will increase by 2% in 2024. Additionally, shipments of the Apple Watch and AirPods (TWS) are expected to grow by 50% and 3%, respectively. This growth follows a decline across all categories in 2023, with Mac and TWS shipments decreasing while iPad and smartwatch shipments grew due to the COVID-19 pandemic’s impact on consumer behavior.
MacBooks and Mac PCs: The Key Revenue Drivers
Apple is focusing on its laptops and tablets to drive revenue growth in 2024. Canalys estimates that Apple will earn $900 million from MacBook and Mac sales and $400 million from iPad sales in 2024. Despite a slow start in the enterprise laptop and PC segment, Apple is now making significant inroads. Bharat Shenoy, a senior market analyst at IDC, noted that market conditions and layoffs previously impacted Apple’s growth, but with an uptick in refresh orders, Apple aims to increase its enterprise market share in late 2024 and into 2025.
Enterprise Market Penetration
Apple is targeting Fortune 500 companies in India and globally to boost MacBook and Mac sales. New chips like M2 and M3 are being tested by enterprises, which is helping Apple secure major accounts. A company source mentioned, “With the emergence of Generative AI, enterprises need better computing power to drive productivity. There are many tailwinds for Apple.”
Collaborations and Ad Campaigns
Apple collaborates with enterprises and educational institutions such as Wipro, Zoho, SRM Institute of Technology, and Galgotias University. To further increase sales, Apple launched an India-specific ad campaign. Shenoy from IDC predicts an increase in the country’s PC and laptop market demand in the next three to four quarters, with Apple remaining optimistic.
Increased Demand for MacBooks
Counterpoint’s Jain highlighted that the enterprise segment will capture around 40% of Apple’s total laptop portfolio in 2023, up from 36% in 2022. She expects this segment to grow by 14% in 2024 due to the integration of Generative AI into Apple’s portfolio. Canalys research analyst Ashweej Aithal attributed the anticipated growth to Apple’s emphasis on channel partners and the potential in SMB and enterprise markets, despite limited migration from Windows to macOS.
Growing iPad Popularity
iPad sales are also expected to rise, driven by the consumer market. The enterprise tablet market remains focused on entry-to-mid-level products. Jain noted, “As the market moves towards premiumization, iPads are gaining more popularity among consumers, increasing Apple’s share in India.”
Education Sector Drives iPad Demand
Jain anticipates growing demand for iPads and MacBooks from the education sector, including coaching centers, universities, and schools. According to IDC’s Shenoy, after an 11.1% decline in 2023, iPad sales are expected to grow by 8–10% in 2024, fueled by discounts and student offers. He said, “The consumer segment will drive growth for iPads. Enterprise contributes less than 20% towards overall iPad sales in India. We expect iPad shipments to reach 640,000 units in 2024.”
iPad Sales Boosted by Festive Season and Discounts
Canalys’ Aithal expects significant growth in iPad sales due to an anticipated surge in the refresh cycle during the festive season. This growth is further supported by discounts and financing schemes, which have helped Apple strengthen its position in the consumer segment, particularly among students. “This demand is also driven by media consumption and content creation needs,” Aithal added.
Local Manufacturing to Boost iPad Volumes
Apple is revising its plans to manufacture iPads in India, encouraged by the government’s efforts to attract more supply chains. Analysts believe this focus on local manufacturing will increase iPad shipments next year. Aithal mentioned, “There are significant developments in local manufacturing of iPads through Apple’s collaboration with Foxconn at its Chennai facility. We might see some production by early next year.”
Apple’s strategic focus on expanding its non-handset categories, particularly MacBooks and iPads, positions it well for continued growth. With a robust ecosystem, targeted enterprise strategies, and increasing consumer demand, Apple is poised to achieve significant revenue gains in 2024 and beyond.
