Apple Inc. (NASDAQ:AAPL) is set to release its first-quarter fiscal 2024 results on Feb 1, with expectations riding high on solid Mac sales and continued growth in the Services segment.

The tech giant foresees a significant uptick in Mac revenues compared to the figures reported in the previous September quarter.

In the Services sector, Apple is optimistic about maintaining a strong double-digit growth rate in average revenues per week, echoing the positive trend observed in the September quarter.

The Consensus Estimate for Mac revenues in the fiscal first quarter stands at $7.77 billion, reflecting a modest year-over-year growth of 0.4%.

The surge in Mac revenues is attributed to an upswing in PC demand, aligning with Gartner’s latest report, which indicates a 0.3% increase in global PC shipments, totaling 63.3 million units in the fourth quarter of 2023. Acer, Apple, Lenovo (NASDAQ:LNVGY), and HP (NASDAQ:HPQ) experienced shipment growth of 11.1%, 7.2%, 3.2%, and 5.6%, respectively. Conversely, Dell Technology’s (NASDAQ:DELL) shipments declined by 8.3%.

Lenovo maintained its lead as the top vendor with a market share of 25.6%, while HP secured the second spot with a 22% market share in global PC shipments during the fourth quarter of 2023. Dell accounted for a market share of 15.8%.

Apple’s market share increased from 9.4% in the fourth quarter of 2022 to 10% in the same period of 2023.

The Services business is poised for steady growth, benefiting from increased App Store usage and the rising popularity of Apple TV+. Additionally, the growing adoption of Apple Music, Apple Arcade, Apple News+, and Apple Card contributes to the positive outlook.

While the iPhone remains Apple’s flagship product, the Services portfolio has emerged as a significant revenue driver, constituting 24.9% of sales in the fourth quarter of fiscal 2023.

At the close of the fiscal fourth quarter, Apple boasted more than 1 billion paid subscribers across its Services portfolio. This figure is expected to have risen in the current quarter, fueled by the expanding user base of Apple devices and the success of platforms like Apple TV+.

The Consensus Estimate for Services revenues in the first quarter of fiscal 2024 is $23.398 billion, reflecting a robust year-over-year growth of 12.7%.

However, Apple anticipates a decline in year-over-year revenue growth for both iPad and Wearables, Home and Accessories. This decline is attributed to the timing of product launches, resulting in a deceleration from the figures reported in the September quarter.

The consensus estimate for iPad revenues in the first quarter is $6.769 billion, indicating a substantial year-over-year decline of 28%. In contrast, the Consensus Estimate for Wearables, Home & Accessories revenues is $11.271 billion, suggesting a moderate year-over-year growth of 16.4%.

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