The four quarters of Apple’s fiscal 2024 were largely dominated by iPhone revenue, with this category either making up half of the total figure, exceeding half, or just narrowly missing the mark. In other words, the technology giant’s flagship handsets have established themselves as the catalyst for why Apple is worth more than a trillion dollars today, but there is also a downside to this level of success. A report states that iPhone sales are dropping, and there will not be another hit product like this, meaning that Apple has to strategize accordingly to further increase its cash flow.
Apple is estimated to generate over $200 billion from iPhone sales; no other hardware category comes close to this figure
Supplementing the iPhone lineup with a boatload of services has been a guaranteed approach to maintaining a substantial financial cushion for every quarter. During this year, Services have not just offset what could have been a somewhat disappointing period for Apple, but this division has witnessed quarterly growth, with a previous estimate stating that the category could bring in $100 billion in revenue by 2025, making up 25 percent of Apple’s annual total.
Bloomberg’s Mark Gurman has said in his ‘Power On’ newsletter that there will never be another product that is on the scale of the iPhone, with even the Apple Vision Pro, despite its technological prowess, failing to grab the masses’ attention. This obviously means that the California-based giant should stop diverting its resources on that potentially ‘hit product’ and focus more on finding new growth sources.
“It’s time to face facts. There may never be another Apple product on the level of the iPhone. It’s hard to imagine something materializing that could generate half of the company’s revenue. For all intents and purposes, Apple is iPhone Inc. and everything else at the company is an iPhone accessory. (Yes, even the Mac. Why are kids today buying Macs? Because of the iPhone.)
Apple still needs to find new sources of growth, of course. The iPhone isn’t going anywhere, but it’s also not fueling the sales gains that it used to. So, what’s the solution? To grow, the company can’t just wait for one big new opportunity — it needs several new device categories on the level of an iPad, Mac or Apple Watch.”
Gurman has previously said that even with a successive lineup of headsets and smart glasses, the most Apple is estimated to bring in for this particular category is $25 billion, so for the foreseeable future, the iPhone will always be the primary money-making machine for the firm.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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