Tag this one as interesting as 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…READ MORE.
My Take: It’s a little shocking to hear that 50% of Apple’s revenue is from the iphone. Only a few years ago the iphone wasn’t even around! Yet, when you think about this news a little more, it makes sense. The audience that the iphone reaches is beyond any other product Apple sells. Yes, ipods were popular, but they’re a one time transaction. With the iphone you buy it, Apple get royalties from the carriers, you buy additional components, and don’t forget the apps you’re also buying. It’s all part of the revenue counted as iphone revenue.
The expansion of the iphone throughout additional carriers, like Verizon is a big deal. Anytime such a revenue streaming product reaches a new and large market, the company is going to have the opportunity to capitalize on some untapped potential. As the iphone grows in international markets, I would expect the same type of increasing revenue growth.
With the iphone’s success also comes danger. If the Droid phones are able to ramp up their customer adoption rates, they may begin to steal customers away from Apple. Right now most people are in the adoption stage; they are buying their first smartphone. Yet, what will happen down the road when the market is filled with smartphone users and they look to change/upgrade their smartphone? Will they turn away from the iphone to some other company? If so, this will be extremely painful for Apple. That is yet to be seen, but it is something that could spoil the apple cart.