£95,130. That’s how much profit Apple Inc made every minute in the three months leading up to the end of December. In the same period, Apple sold 74.8 million iPhones or to put it another way, an iPhone each for every person in the UK.
So why have the press covered our news feeds with negative articles today? The reasons are two fold; It’s an easy way to fill web pages and get clicks and it is also a genuine barometer for the global economy.
With a successful product and a loyal customer base, Apple are in a very enviable position. They take somewhere in the region of 95% of the total profits in the Smartphone market and have over 1 billion active devices. To say that the time of ‘peak iPhone’ has come is a little premature.
It may look this way on the surface but if you consider the contracted growth in the Chinese economy and the fact that China accounts for a quarter of iPhone sales, it’s actually impressive that the numbers didn’t drop further!
With Apple’s annual release program we can expect to see the iPhone 7 in September. Will the release re-invigorate Apple’s iPhone sales?. Yes, it will, it’s sort of a given at this point. But, will it improve the company and keep the revenue streams high? This remains less clear.
Apple currently sit on an estimated $213 billion cash reserve. To put that in perspective, Apple could pay for all of the proposed HS2 line and the trains to go on it and still have £100 billion in the bank. With investable money like this, the potential for Apple to create a completely new market has never been higher.
A prime example of that beyond the iPhone, is the iPad. The iPad six was announced six years ago yesterday and is now more likely to be used as a home computer than any other tablet.
Has the peak of the ‘iPhone’ been reached. No, but if there is such a thing as an iPhone peak when it arrives, you can bet Apple will be something new, shiny and market changing to distract you.