Second-Biggest Revenue Generator for Apple Is Surprisingly Services, Which Beats out the Rest of the Physical Products
The infograph shared by a Twitter account with the username iPhone 15 Ultra reveals that the iPhone generates a whopping $191.7 billion in revenue for Apple, capturing 52 percent of the entire income stream. One would assume that since the iPhone commands such monetary power over Apple’s entire product, it can end up becoming a weakness for the company, but that is not the case here. The iPhone’s synergy with other products such as the iPad, Mac, wearables, and services through Apple’s ‘iron fist’ software integration is what compels customers to return to these handsets time and time again. Surprisingly, Apple’s second biggest contributor to revenue generation is services which takes up 19 percent of the total. Though the iPad remains the most popular large-display product for the masses, tablet sales have been slipping, so it is no surprise that even though this category accounts for $31.9 billion in annual revenue, it is also the lowest figure out of all of Apple’s products. Apple’s Mac revenue has surpassed the technology giant’s wearable category, generating $38.4 billion in annual revenue. Earlier, a report stated that the new M2 MacBook Air launch had Windows notebook makers worried since its attractive price point would lure customers to it. This model alone will reportedly bring in seven million in sales by the end of 2022, and on top of that, there are previous-generation versions with the M1 chip that continue to be sold for a lower price. Removing Intel from the equation certainly helped improve Apple’s sales since the latter’s Macs are no longer competing on an equal playing field. Next year, we could see the iPhone taking up a higher percentage of Apple’s overall revenue thanks to the strategy the California-based firm is rumored to employ. According to analyst Ming-Chi Kuo, Apple will bring more exclusive features to the higher-end iPhone 15 series to increase its margins and average selling price (ASP), so the figure that you are reading right now may see a new threshold next year. News Source: iPhone 15 Ultra
