comscore iPhone, iPad now account for three-fourths of Apple's revenue, drive Mac sales
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iPhone, iPad now account for three-fourths of Apple's revenue, drive Mac sales

One of the biggest pieces of news coming from Apple's record-breaking quarterly earnings is that iPhone and iPad now account for over 72 percent of Apple's total revenue. Add iPod touch and revenu

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One of the biggest pieces of news coming from Apple’s record-breaking quarterly earnings is that iPhone and iPad now account for over 72 percent of Apple’s total revenue. Add iPod touch and revenues generated from the App Store, the figure would be closer to three-fourths of the total revenue. Recognized revenue from iPhone and iPhone accessory sales was $24.4 billion during the quarter compared to $10.5 billion in the year-ago quarter, an increase of 133 percent. Meanwhile, recognized revenue from iPad and iPad accessory sales was $9.1 billion during the quarter compared to $4.6 billion in the year-ago quarter, an increase of 99 percent. The two combined accounted for $33.5 billion of revenues in the quarter where Apple did $46.3 billion. Also Read - Omicron coronavirus variant cases rising: 5 must have gadgets to stock up at home immediately

Apple announced it had sold 37.04 million iPhones and 15.43 million iPads. In all, Apple sold 62 million iOS devices (including iPod touch), taking the cumulative installed base to cross 315 million devices. The App Store will have made developers $4 billion by the end of this month (and Apple keeps 30 percent of revenue as its cut and the $4 billion figure represents the remaining 70 percent). Think about it, the iPhone, iPad or iOS did not exist five years ago. Yes, Apple is now an iOS-driven company. Read on. Also Read - Oppo foldable phone likely to feature Galaxy Z Fold 3 like design, tipped to get 50MP triple camera

“I clearly believe, like many others in the company, that there will come a day that the tablet market, in units sales, is larger than the PC market. It is clear from IDC data on dektop PC sales in the US that tablet sales have exceeded desktop PC sales last quarter,” Cook said during the earnings call. Apple has sold 55 million iPads till date after it went on sale in April 2010.

Having said that, Apple’s Mac business too continues to grow bucking the PC industry trend, which remains flat. Mac sales have outgrown the industry over 20 straight quarters even though it too is witnessing cannibalization by the iPad. But as Apple CEO, Tim Cook, mentioned during yesterday’s earnings call, it is products like the iPhone and iPad that drive consumers towards Mac and other Apple products. More than half of those who bought a Mac from an Apple Store were first time buyers. It won’t be surprising if most of them are already using an iPhone or an iPad.

And this is what makes Apple special than any other tech company out there. It sucks users into its own ecosystem that drives even its lesser popular products. With the runaway success of the iPhone and its simple user interface, users are more likely to buy a Mac when they next replace their PC than they would have in a pre-iPhone era. And Apple recognizes this tendency. The introduction of the MacBook Air with instant-on, deep sleep mode and iOS-fication of Lion are just some of the steps Apple has taken to make its Mac portfolio attractive to iPhone and iPad users who have never used a Mac before. (Disclosure: I’m one of them.) In essence, Apple is ensuring that even if tablets cannibalize the conventional PC business, it eats into Microsoft and its OEM partners share more than its own. And it has been successful in doing that.

Cook summed it better than anyone could probably do, when asked about competition, especially from Android. “What we focus on is innovating and making the world’s best products. We just ignore how many horses there are and we just stay ahead and lead them,” he said, which also hold true for every other product category Apple sells.

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  • Published Date: January 25, 2012 3:52 PM IST
  • Updated Date: January 25, 2012 3:56 PM IST



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