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50% of Apple's Revenue Comes From the iPhone

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  • What I want to know is how much of that 50% is from hardware sales and what is from app store revenue.
    • by iluvcapra (782887) on Thursday April 21, 2011 @03:20PM (#35898186)

      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.

      • by Talderas (1212466)

        Maybe you should read his question.

        It wasn't whether App revenue was added but what portion of the 50% was app revenue.

        12.3B was iPhone revenue.

        Was 50% of that from apps (6.15B)? 25% (3.07B)? 75% (9.25B)?

        • by gig (78408) on Thursday April 21, 2011 @03:35PM (#35898382)

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

        • by iluvcapra (782887) on Thursday April 21, 2011 @04:02PM (#35898794)

          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.

        • He answered that, dimwit. 0%. App revenue is recognised under iTunes, not iPhone.

        • derp
    • by ePhil_One (634771)
      If you read the article, App store purchases counted as "iTunes" revenue. The big delta here is carrier agreements, which were counted as iPhone revenue.
      • by gig (78408)

        Carrier agreements just means paying for iPhones. They cost $640 on average, but the user pays $240 on average and the carrier pays the rest.

        • by iluvcapra (782887)

          In the US this is true, at least as far as we know about Apple and AT&T [arstechnica.com], but Verizon/Apple have never disclosed their backend deal, and we don't know what happens anywhere else.

        • by ePhil_One (634771)

          Carrier agreements just means paying for iPhones. They cost $640 on average, but the user pays $240 on average and the carrier pays the rest.

          Actually, Carrier agreements means exclusivity deals, cross promotion payments, etc. Its not as simple as $640x18.4 million units. I'm not sure what exclusivity $ is out there now that its on two networks, or if Verizon is paying Apple to bring the iPhone to Verizon faster, etc. But if they are, that money is captured here.

  • by Anonymous Coward

    the banana phone?

  • Another factoid (Score:4, Interesting)

    by iluvcapra (782887) on Thursday April 21, 2011 @03:19PM (#35898164)

    Apple is now the largest cellphone manufacturer on Earth by revenue [allthingsd.com].

    • by gig (78408)

      They have been the largest by profits and by market cap for a long while.

  • by Anonymous Coward on Thursday April 21, 2011 @03:20PM (#35898184)

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

    • He was right based on the state of things at that time. That prediction was based on the ridiculously high price of the iPhone, before they lowered it a few hundred dollars.

      • by samkass (174571)

        That prediction was based on the ridiculously high price of the iPhone, before they lowered it a few hundred dollars.

        Which is exactly the same argument being made today regarding iPhone's competitiveness versus Android. I'm not sure why people assume Apple will never compete on price like they did to win the iPod market. A pre-paid iPhone nano (hopefully not an iPhone Shuffle! :) ) is an inevitability someday.

      • It only goes to show Ballmer has no vision. He's all bluster. You say: "He was right based on the state of things at that time." which is why MicroSoft is always behind the 8 ball. A successful company wants a CEO who can envision the future correctly, not one who predicts the future and fails every time. Apple predicted the future correctly (and is repeating its self with the iPad) based upon "...what was known at the time" of the prediction.

      • by node 3 (115640)

        He was right based on the state of things at that time. That prediction was based on the ridiculously high price of the iPhone, before they lowered it a few hundred dollars.

        All you stated was that he had a reason to think he was right, and that reason turned out to be wrong. How is that any different from being wrong, which he clearly was?

    • by ClaraBow (212734)
      Wow, reading this article really points out how myopic Ballmer has become. He really can't see anything being successful outside of the MS-Windows world! Microsoft really needs new leadership!
      • by hairyfeet (841228) <bassbeast1968&gmail,com> on Thursday April 21, 2011 @04:15PM (#35899024) Journal

        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.

  • by HerculesMO (693085) on Thursday April 21, 2011 @03:33PM (#35898350)

    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...

    • I, too, have been conditioned to believe 7 impossible things before breakfast.

      This is the problem with the stock market. Its fear driven. I *could* be afraid that Windows Phone or Android might make a big dent in iPhone market share. Or I can invest with confidence and wait for actual signs that this is actually taking place. Never mind the fact that 50% of Apple's profits come from products other than the iPhone...

  • I think they should buy bellsouth. And if you have an iPhone on a Apple carrier network, then you would be able to get features available in no other way. Maybe the phone could use a special protocol when talking with an Apple carrier. But I guess the cell towers are still privately owned right?

    • by LWATCDR (28044)

      Probably should buy TMobile and ClearWire for the spectrum. It would be cheaper. But Apple will not do that for the same reason that Microsoft isn't building a phone. Apple does not want to tick off the carriers. Plus for Apple it gives someone else to blame. Do you really think Apple wants worry about things like not enough towers in Idaho or a saturated network in SF?
      Naw better to rake in the money. Now Google should think about buying TMobile.

      • If approved T-Mobile will be owned by AT&T, too. It's already in the works.

        • by LWATCDR (28044)

          I know I am hopping that it will not be approved. After all Sprint is crabbing about it big time. I think T-Mobile is also worried that it will not go through since they put such strong penalties on AT&T if the sale fails.

    • by samkass (174571)

      Why would Apple want to compete against the folks that are making them all this money? Apple's advantage is iTunes and their app platform, so any acquisition should feed people's ability to buy things on/for their devices.

      They could buy Visa with cash on hand, and I think they'd get a lot more for their money.

  • by VorpalRodent (964940) on Thursday April 21, 2011 @03:37PM (#35898406)
    I find this very interesting. In particular, I've had a number of people talk to me about how awesome Macs are, in particular discussing the adoption rate of OSX, etc. One of the things that continually gets pointed to is Apple's growth as evidence of this. While I don't pretend to have a strong grasp on the various numbers bandied about, if such a large percentage of Apple's revenue is solely from the iPhone, it really puts a damper on the idea that "based on Apple's growth, everyone will be using a Mac in just a few months" (hyperbole mine). Don't get me wrong, OSX market share may be increasing (possibly by large numbers), but my anecdotal examination of the world around me didn't seem to jive with what everyone was claiming.
    • I rather agree, but the marketing numbers seem to indicate that few people are buying laptops these days and nobody is buying desktops.

      It appears to be iPhones, all the way down.
    • by blueg3 (192743)

      Growth by what? If you measure computer market share, their growth in smartphones isn't influencing your data. If you measure growth by, say, revenue or market capitalization, they've grown by much more than a factor of 2 -- so they've had significant growth even if you remove their entire smartphone business.

      Including the hyperbole, though, their growth isn't actually that fast. The iPhone's been out for a number of years and Apple's big growth boom has gone on longer than that. If everyone was going to be

    • by Americano (920576) on Thursday April 21, 2011 @03:50PM (#35898582)

      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.

      • by hazydave (96747)

        Apple loses a small percentage of their high-end, media industry users every year. In the USA, they've been replacing them, and more, with iMac buyers, won over by the iPhone. But this hasn't translated to international sales, or a significant change in their global market share, which has been hovering around 5% for over a decade (since the dust settled on the x86 Mac).

        Or, to look at it another way, the iPad made nearly as much money as all Macs combined last year. A market they didn't even have in 2009. I

        • by shmlco (594907) on Thursday April 21, 2011 @05:57PM (#35900466) Homepage

          "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.

      • Hence why I haven't sold my Apple stock (yet). It doesn't matter that I could cash out a 300% return. What matters is whether I think I can get more return by investing in Apple than by using the money to invest elsewhere. And, for everything I can see, keeping it in Apple will yield continued results.

    • by biglig2 (89374)

      Mac sales are increasing by very large numbers - 28% year on year growth of Macs in March, for example.

      Of course, you can make huge gains without it saying anything about market share... except that the PC market is currently shrinking, in part due to iPad sales.

      Good to be Apple, dontcha think? :-)

  • My informal statistical sampling of sitting on a bench in a mall near Atlanta, GA, told me that at least 75% of the people that walked by me talking on/texting on a phone had an iPhone. Admittedly, that area is rather affluent, but we are talking about a ton of people I took notice of. I often make a game of doing this while people watching; not necessarily cellphones, but other traits. I just happened to notice that a lot of people, even though they were with a group, were all paying attention to their

  • Not a shock.... they supposedly made almost as much on the iPad last year as the Macintosh PC. And the iPad wasn't even around the whole year.

    The Mac has experienced a bit of the "iPhone coattails" boost in the USA recently, but not world-wide. It's been stuck at about 5% of the global PC market for years, and even after this boost, it's still usually listed as less than 6%. But the iOS devices have been growing like crazy.

    And it's a very smart market to have that kind of chunk in. Apple's getting revenue f

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