Most of the people in the world know Apple as an iPhone maker and even some of them think Apple is limited to producing iPhone only. And according to the sales and revenue reports of Apple’s in the last few years show that the iPhone is responsible for more than 50 percent revenue of Cupertino Tech Giant. But recent reports are suggesting that after 2012, the first time iPhone showed less than half the company’s total revenue for its third quarter. This clearly shows that Apple is generating revenues from iPad, Mac, Services, and other wearable and accessories.
Although, the revenue of the iPhone is not far from 50 percent as it is accounted at 48% but it may continue to fall if iPhone 11 doesn’t become a success. Several reports claimed earlier this year that iPhone sales have dropped in the first this year but it hasn’t affected the revenue. These are the indications that Apple is much more than the iPhone and it is capable of generating revenues from its other products and services faster than iPhone sales are dropping. Apple declared quarterly revenue of $53.8 billion, an increase of 1 percent from the year-ago quarter. Here are figures of net sales by category (Amount is in millions).
The reports are showing that Apple’s revenue from “Wearables, Home and Accessories” and “Services” has increased in the last year. Eventually, these categories are making more money than iPad and Mac. Wearable, Home & Accessories includes Apple Watch, Apple TV, AirPods, and other similar products. Apple CEO, Tim Cook said that Apple Watch and AirPods are big sellers for the company now and this business is as big as Fortune 200 Company
“Apple’s Services” includes revenue from App Store & search ad for the App Store, streaming services like Apple Music, Apple TV & iTunes, Apple Pay, and insurance service called Apple Care. The services business was around $25 billion in 2016 and according to Cook it would likely to double up next year. Right now there are around 420 million paid subscriptions across Apple’s multiple services and the company is expecting it to reach 500 million by 2020 as several new services like Apple TV+ and Apple Arcade are releasing this year in the fall.
So, all these things are surely showing us that Apple is becoming more than just an iPhone maker company. Just like Apple, Microsoft and Amazon are also pulling a similar strategy to grow their business apart from depending on its revenue gorilla. But the matter of concern here is that Apple’s revenue from services is mostly dependent on iPhone and other Apple products. So Apple needs to cover the users of Android and other customers.
Even though sales of the iPhone are falling but the number of users of the iPhone has increased since people are buying refurbished and second-hand iPhones. Apple’s recent trade-in program offers discounts for trading their old iPhones. So Apple needs to keep pushing its sale of iPhones so the number of people relying on Apple service increases.