Ole Begemann

iOS Development

Where Apple would stand without the iPhone and iPad

Have a look at this chart which I compiled after Apple’s recent quarterly earnings report:

Apple Revenue by Product Line 2007 Q3–2011 Q2

Apple Revenue by Product Line Q3 2007–Q2 2011. Source: Apple’s Quarterly Earnings Releases.
As of Q1 2010, Apple has adopted different accounting principles that particularly affect recognition of iPhone revenue. Earlier numbers have not been adjusted.

Within less than four years, two previously non-existing product lines have taken over a good 60% of Apple’s revenue – approximately even 65% if we include the iPod touch that probably accounts for a large share of iPod revenue.

If the iPhone and iPad had not come, Apple’s revenue from fiscal Q2 2007 to Q2 2011 would have grown by a “mere” 119% instead of 466%. Astounding. I guess that’s the difference between constantly reinventing yourself and resting on your laurels.

Update April 30, 2011: Several readers have pointed out that I did not mention that the Mac platform probably profited considerably from a halo effect that iOS devices have had on Mac sales. And I agree: happy iPhone users are more likely to choose a Mac for their next computer. The effect is hard to quantify, though. I should also note that App Store revenues are part of the “Other” category in the chart.

Jim Thorpe speculates if the Macbooks’ unibody case is also a byproduct of the case design for the iOS devices:

Consider the steps that Apple took to begin the whole “aluminum unibody” trend: were those investments and advances all built from their long-standing iPad plans? Would the MacBook Pro be anything like they are today if the iPad/iPhone hadn’t existed?

Who knows? It’s an interesting thought.