Apple gets more revenue from iPhone than from Macs or iPods
New accounting rules and methods have made clear the impact that the iPhone has had on Apple’s success, and it turns out that the revenue from the iPhone is more than from either Macs or iPods.
Because of recent changes in how revenues are reported, Apple is no longer deferring the reporting of iPhone costs and revenue for two years and their new financial statements now reflect a more accurate picture of how the current business is operating. Inside that picture, it is clear that the iPhone has been driving the bulk of the growth in the company over the last couple of years, and that the iPhone is responsible for more revenue than any other product line, including a combination of Mac desktop and portable computers.
A report in the Wall Street Journal notes that in the 2010 Apple fiscal first quarter, which ended Dec. 26, iPhone and related product revenues came to $5.6 billion, 36 percent of Apple’s revenue total. That compares with $4.45 billion for total computers and $3.39 billion for iPods. The iPhone, clearly, is largely responsible for doubling Apple’s sales over the past three years. Even though computer sales are up sharply at Apple, iPod sales have been roughly flat over the same period.
The associated increase in gross profit margin is even more impressive. The iPhone carries higher margins than do other Apple products, so the gross revenue of the company has increased from 31 percent to 48 percent over that same three-year period. If the iPhone continues its clear superiority in its technical and customer satisfaction ratings into the future, staying ahead of the competition, there is little reason for these numbers to slip. It is also worth noting that the iPad tablet computer, which was announced today, should also be a high-profit item, plus being at a higher price, which should amplify this trend if projected trends are anywhere close to reality. At this point, the future looks rosy for Apple.
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