Apple may no longer release a single product that comes close to the iPhone in terms of profitability, writes Bloomberg technology correspondent Mark Gurman. But the company has the opportunity to grow through new device categories like Apple Watch, MacBook and iPad.
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As Gurman points out, the iPhone occupies a central place in Apple’s product ecosystem, generating more than $200 billion a year (more than half of its total revenue). The smartphone, launched almost 20 years ago, guarantees the popularity of the company’s other products, such as the App Store, Apple Watch, the music service, the TV+ streaming platform and AirPods.
Over the past 15 years, Apple has launched new product categories and some of them are quite profitable. The iPad generates more than $25 billion a year, and the portable and home devices division generates about $40 billion a year.
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Not all attempts were successful. At the beginning of the year, the company abandoned the development of an unmanned vehicle that it had been working on for 10 years. And sales of the Vision Pro, its first mixed reality headset, were lower than expected.
“It is time to face the facts. There may never be another Apple product comparable to the iPhone. It is difficult to imagine something appearing on the market that can generate half of the company’s revenue. Basically, Apple is iPhone Inc., and everything else in the company is an iPhone accessory,” Gurman writes, noting that this also applies to the MacBook.
But Apple still needs new sources of growth as iPhone sales decline. “To grow, a company cannot simply wait for the next big opportunity: it needs new device categories like the iPad, Mac or Apple Watch,” Gurman emphasizes.
He believes that such categories could be:
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Line of sight of wearable devices (smart glasses and AR, head-mounted displays connected to iPhone);
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advanced versions of AirPods with health features and other technologies (the headphones now generate $10 to $15 billion a year);
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smart home devices (the company plans to launch two devices: a smart display in the first half of 2025 and a command center with a robotic hand within several years).
As a Bloomberg correspondent writes, Apple is also considering the possibility of creating mobile robots for everyday tasks, including humanoid models.
Author:
Daria Sidorova
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
