Mobile Commerce & Other Media Ltd


iPhones, Apples biggest money maker

July 30th 2014

Apple is under a lot of pressure to deliver on its next generation of the iPhone; the iPhone 6, if they stick to the naming scheme. This is not only down to customer pressure to wow with the next iPhone either.

The iPhone is the most important piece in the Apple arsenal. Since it was first released in 2007, the iPhone has accounted for 57 per cent of its revenue as of April, up from 2 per cent in 2007.

This week, Apple posted a profit of $7.75 billion, up 12 per cent from last year. Apple finished the quarter with a staggering $164.5 billion in cash and investments. International sales made up 59 per cent of its revenue.

And there is nowhere in the world that Apple is growing faster than in China, bolstered by recent lucrative deals with China's largest wireless carriers. But that’s not even where Apple has the biggest revenue.

Sales of the iPhone and iPad were up about 50 per cent from the same period last year. With the strongest category of growth this past quarter in the section that contains the App Store.

The next generation iPhone launch is particularly important because many Apple devotees held onto their iPhone 4 or 4S models, skipping the upgrade.

That new model is expected to have a larger screen than its current 4-inch display, to keep up with consumer appetites for watching video.

Apple has asked its suppliers to produce at least 70 million phones for the fall, as opposed to the initial 50 million to 60 million order the company placed for the 5s and 5c.


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