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Apple’s future profitability heavily depends on mobile!

November 18, 2010 Leave a comment

Will Apple be able to mitigate the impact of strong competition in the mobile market on future earnings?

The information is taken from Apples 2010 10k (numbers in Millions)

Net Sales by Product: 2008 2009 2010
Desktops $5,622 $4,324 $6,201
Portables $8,732 $9,535 $11,278
iPod $9,153 $8,091 $8,274
Other music related products and services $3,340 $4,036 $4,948
iPhone and related products and services $6,742 $13,033 $25,179
Peripherals and other hardware $1,694 $1,475 $1,814
Software, service and other sales $2,208 $2,411 $2,573
iPad and related products and services $0 $0 $4,958

From 0 to 5 Billions in one year – iPad success

iPhone sales almost doubled in each of the past two years (in 2007 when the iPhone was firstly introduce, sales were “only” 630 millions).

Apple also managed to significantly increase laptops sales(Portables), thanks to Apple’s success selling other products and building strong brand name. Yet, not at the same rate as iPhone revenue growth.

iPad sales is going down – it is now inside the iPhone?

Apple’s iPhone become a big source of revenue

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Apple’s iPhone share of revenue is growing significantly relative to the other products

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Apple is a multi-markets player: mobile, media, b2c hardware, b2b hardware, software and services.

Apple can always surprise us with a new blockbuster product changing another market.

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