50% of Apple's Revenue Comes From the iPhone

BogenDorpher writes "A new report indicates that 50% of Apple's revenue comes from its iPhone product. Not 5%, not 20%, but 50%. In just three months from December 2010 to March 2011, Apple has raked in a total of 24.6 billion dollars. 50% of that came from the iPhone."

Comments

Re:Wait...

[wikdwarlock]

They also sell proprietary iPhone cables.

Another factoid

[iluvcapra]

Apple is now the largest cellphone manufacturer on Earth by revenue.

Re:But how do this compare with

[belthize]

Radiation concerns have killed the banana phone sales.

Ballmer was right again

[Anonymous Coward]

http://arstechnica.com/microsoft/news/2007/04/ballmer-says-iphone-has-no-chance-to-gain-significant-market-share.ars

Re:Ballmer was right again

[hairyfeet]

Frankly I've been saying that for awhile now. You think the Apple prediction was bad? How about royally boning the chance to wipe out Windows piracy AND boost your numbers AND being able to have a captive market to upsell AND boosting the latest IE ALL at the same time?

Talking to my fellow builders and repairmen the $50 Windows 7 HP deal was wiping out piracy. Like me they went from seeing the "Razr1911" XP and Vista Ultimate installs to Win 7 HP across the board. They were also getting many of those still sitting on the fence deciding whether to keep XP or not to upgrade. So what does he do? Raises the price to $100 and guess what happened? Now there are Windows 7 Ultimate installs all over the place. Smart Move Ballmer!

I give credit where credit is due and Jobs has made Apple THE hip upscale brand. Jobs keeps the price high because like Porsche and Ferrari it is part of the appeal. The lesser priced iDevices (even though they are still making him something like 40%+ profits) get people started on the brand like Ferrari jackets. Once you get them hooked it is easier to upsell, and I've seen many who went from one iDevice to having a Macbook and several.

That is why I still think that ancient Gates Borg icon needs to be retired, and replaced with Ballmer wearing a beanie that says "I heart Apple!" on it, since that seems to be his business strategy. Anything Apple does the sweaty monkey follows it with a lame half assed copy six months to a year down the line. Kin, Zune, how much $$$ has he blown so far just on the fails? I can just imagine him trying to rev up the troops "And with this newest device we'll be cool as Apple and people will flock to us! Yes they will! They really really will! STOP LAUGHING AT ME!!!".

What they need to do is fire his ass and put one of the office guys in charge. Focus on integration, making things like having home users and SMBs be able to connect their machines no matter where they are as easy as plugging in a USB drive or using Homegroup, bring back Win 7 HP at $50 to wipe out piracy, and quit trying to play falling the bouncing Apple. Leaders win, followers suck. I think it is pretty obvious which of those categories Ballmer falls into.

Re:What I want to know

[iluvcapra]

Second paragraph:

Keep in mind that these numbers are not simply based on how many iPhones have sold. The 50% number includes "Related Products and Services" such as carrier agreements, services, and accessories. Anything brought from the App Store is classified as iTunes revenue. iPod Touch and the iPad were not calculated as a part of the iPhone revenue.

Re:Wait...

[mbkennel]

1. Create iPhone
2. Wail on carriers so they don't ruin it
3. Profit!
4. Profit!!
5. Profit!!!
6. Profit!!!!
7. Profit!!!!!

This is why Apple is a dangerous company..

[HerculesMO]

I know it's kind of laughable right now, but imagine if Windows Phone or Android make a big dent into Apple's iPhone marketshare.

That's 50% of their revenue they are cutting into, at high percentages. Just food for thought folks...

Re:This is why Apple is a dangerous company..

[NatasRevol]

If you go by OS, then iOS is trouncing Android. Because by going by OS, you HAVE to include, iPod Touch, iPhone, iPad.

http://blogs.wsj.com/digits/2011/04/19/a-look-at-ipad-users-apple-still-trouncing-android/?mod=e2tw

Re:This is why Apple is a dangerous company..

[NatasRevol]

Why would anybody reasonably try to compare Smartphones to MP3 players?

People who want to sell apps across an OS.

Re:This is why Apple is a dangerous company..

[biglig2]

Shocking as it may be to hear an Apple Fanboi say this - good point RazzleFrog! Because, you see, you're right: Android IS trouncing iOS in smartphone marketshare. And Apple don't care!

They're making all the profit. They're selling every iOS device they can build. They're seeing Mac sales go up while PC sales go down because of iPad. They're watching RIM go insane and Nokia sell out to Microsoft. They're welcoming all the developers to iOS, who come there first because that's where the money is.

Hell, it's Apple that's driving Android sales. How many Android phones get sold in response to a customer query of "I want something like an iPhone only cheap" or "I want something like an iPhone but don't want to change networks."

Re:This is why Apple is a dangerous company..

[Americano]

Here's why your argument is disingenuous: When you're comparing platforms, the usual reason for doing so is to compare the robustness of the platforms in terms of where a developer/company should focus its efforts at producing apps. And iOS, as an app platform, is much larger than Android, because you can't simply disregard the fact that many (most?) apps work just fine without phone hardware, and can work either disconnected, or over wifi-only, on iPads and iPod touches. If you develop for iOS, you have access to millions of non-iPhone devices.

So, yes, the aggregate market share of all Android devices is a few % larger than the market share of the single line of phones that Apple produces. So what?

If your goal is to use that number to convince people that Android is a compelling platform to develop for (i.e., enhancing the value & appeal of the platform with third-party applications that will entice users to buy), then you cannot disregard the fact that iOS is much larger than "only iPhones," just as Android is much larger than "only Motorola Droids."

And it's interesting to note, with the arrival of legitimate Android competitors to the iPad, that people flogging Android seem eager to overlook the low market share of these devices while touting Android as a total winner for any shop looking to develop apps for a mobile platform.

Re:This is why Apple is a dangerous company..

[shmlco]

"They are going to write for both because they want to hit as many people as possible."

As an iOS developer, I'll tell you right now that I'm currently NOT writing for both. Several friends are, and wish they hadn't. Android platform sales suck, just as paid Linux application sales suck. 'Droid-boys don't buy, and as such it doesn't really matter how many eyeballs are on the platform. No sales == no sales.

That's why most of the Android apps are free and ad-based... at least then you have a chance at SOME money. Unfortunately, they don't tend to click on ads, either.

Google may need to follow in Apple's footsteps, and produce their own software like Pages, Numbers, Keynote, iMovie, and Garage Band. At least then SOMEONE will be writing quality apps for their platform.

Re:What I want to know

[gig]

Apps are iTunes Store, which is a separate $1.4 billion (per quarter) business. Not part of the iPhone revenue.

Don't for get the apps

[goombah99]

Incredibly 80% of their profits come just from apps for middle managers, hairdressers and telephone sanitizers.

Re:Misleading Statistics

[Americano]

On their Results call yesterday, they said that:
1) Mac sales continued to increase year-over-year;
2) Analysts have predicted a ~3% decrease in the PC market this year;
3) 50% of Macs sold were sold to first-time buyers;

What does this mean? In plain terms, they are slowly winning a larger portion of a slightly-shrinking pie, and 50% of their sales are going to people buying their first mac. As I recall, the story has been pretty similar for the last few years. The iPhone/iPad/iPod halo effect, I suppose.

Will everybody be using a Mac tomorrow, or next month? No, of course not. But there's very little reason to conclude that Macs are dead, or even feeling a little under the weather.

Re:What I want to know

[iluvcapra]

Don't let anybody ever tell you you ask confusing, non-sequitir questions, Talderas. You just keep shining on, making sense of the world the way you see it, and maybe someday they'll let you use the scissors with the pointy ends.

Re:Misleading Statistics

[shmlco]

"Apple loses a small percentage of their high-end, media industry users every year."

Depends on the market. Use of Final Cut among the video and movie folk is rising.

"...or a significant change in their global market share, which has been hovering around 5%..."

Consider the numbers for US marketshare (9.3%), or US home marketshare (18.6%), or US college student marketshare (25%), and watch the numbers change dramatically. World marketshare is increasing as well, but commodity PC purchasing in India and China is increasing at an even faster rate, thus maintaining the same percentage, seen as a percentage of the whole, is actually a fairly significant accomplishment.