Analyst Horace Dediu (who has published excellent articles on Apple’s business) investigated the popularity of the Apple iPhone (Apple’s flagship gadget) over the years and how it has affected the company’s business.
Dediu opened the discussion by stating that the iPhone “is the most successful product of all time”; not for less, after all the smartphone has sold more than 1.6 billion units worldwide.
To get an idea, in 2016, the installed base of users of iPhones, iPads, Macs, iPod touch, Apple TVs and Apple Watches was 1 billion people; that is, this number currently only covers the use of iPhones around the world.
According to Dediu, this means that sales of the gadget reached $ 1 trillion last year – or better, exceeded, reaching $ 1.9 trillion.
Although iPhone’s performance has leveraged Apple to a new level in the world of technology (which actually began with the iPod), keeping it as the sole pillar of support would be a risk to the company.
In this sense, the analyst explained that it is important to maintain a certain dynamism in business – in the case of Apple, this came with the possibilities created by the iPhone.
With the launch of the App Store in July 2008, the company created a software innovation platform that remains one of its key revenue sources.
In addition, the integration of the Apple ecosystem (from iCloud, mainly) helped in sales of other products such as Macs and iPads.
Of course, Apple has taken several initiatives over the years to increase sales not only of the iPhone, but of its other products.
Perhaps the most intelligent idea of the company (both to unite its range of products and to attract new consumers) has been to add the services to its catalog.
In 2006, one year before the iPhone’s launch, the iTunes Store earned $ 3.3 billion in content for Macs and iPods. Ten years later, the company’s online store revenue rose to $ 80.5 billion.
For this year, store revenue is expected to reach $ 100 billion, proving that this business still has a lot of gas (and profit) to offer.
So much so that this year the Cupertino giant announced the launch of three new services: the Apple News + (news), the Apple Arcade (games) and Apple TV + (video streaming), not to mention Apple Card.