Apple May No Longer Be an iPhone Company
Apple may be finally entering the post-iPhone
The Cupertino tech giant’s Q3 2019 results revealed that the iPhone now makes up less than half of the company’s total revenue — 48 percent. That’s the first time this has been the case since 2012. However, this isn't the end of the company. And it may just be a new beginning.
Continue reading to learn four reasons why Apple May No Longer Be an iPhone Company.
Yes, iPhone Sales Are on the Decline
iPhone sales have been on the slide for at least a year or so now. That’s due to a variety of reasons, including an overall saturated and declining smartphone market across the globe.
But, interestingly, the iPhone is actually the only product that saw a revenue decline during the June quarter.
Despite the iPhone’s waning influence, the company actually managed to grow revenue year-over-year and end a multi-quarter decline.
But Other Business Ventures Are Booming
More than anything else, this suggests that Apple isn’t going anywhere. And, in fact, the company could still see strong performance and growth in the future, even without the iPhone at the helm.
The Mac and iPad lineups grew 11 percent and 8 percent from this time last year. Wearables, Home and Accessories business (which includes AirPods and the Apple Watch) grew a staggering 48 percent year-over-year. That category now brings in just as much money as the iPad.
A lot of emphasis has been placed on Apple’s Services business, which may overtake the iPhone as the company’s primary revenue driver. Last quarter, Services grew 11 percent and its revenue reached an all-time high of $11.5 billion.
Interestingly, Apple’s Services category is now bigger than all of the company’s businesses 10 years ago.
And even when it comes to the iPhone, things are looking up for Apple. Apple managed to reverse course on iPhone revenue, tracking a 12 percent decline year-over-year. That’s better than the 17 percent slump Apple reported last quarter.
All of these numbers paint a picture of a company that’s doing fine despite declining sales of its flagship product.
Apple Has an Exciting Lineup Outside of the iPhone
The iPhone has undoubtedly been Apple’s flagship product for years now. Sure, the Cupertino tech giant sells Macs and iPads. But its success largely relied on its handset.
Going forward, that may no longer be the case. Apple is continuing to invest in Services as a primary growth driver, which includes unveiling new platforms like Apple TV+, Apple Card and Apple Arcade.
Apple’s iPhones are also still good investments, particularly due to the fact that they are incredibly powerful and future-proof. That, along with continued software support, means that users will be able to hold onto iPhones for longer.
That’s important since much of Apple’s Services business relies on a strong iPhone user base. Luckily, the staying power of Apple’s handsets means that the user base will likely stay consistent — and may even continue to grow in the years to come.
And that’s not even considering possible future products in Apple’s pipeline. It seems likely that, as smartphone sales wane across the globe, Apple will continue to invest in less obtrusive and more innovative hardware categories.
Just take a look at the Apple Watch. With a standalone App Store, cellular support and a pair of AirPods, a user could conceivably leave their iPhone at home for extended periods of time.
Apple's Looking into the Future, One without iPhone
Apple is also largely rumored to be working on a pair of first-party augmented reality (AR) glasses. While there were some rumors that the project had been put on hold, more recent insider reports suggest that Apple is continuing to invest in what may be an iPhone replacement down the road.
In other words, Apple seems well-prepared for the post-iPhone era, despite what critics and bloggers may tell you. And according to Apple CEO Tim Cook, whatever comes after the iPhone may just “blow you away.”