Apple’s future profitability heavily depends on mobile!
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|
|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
Apple’s iPhone share of revenue is growing significantly relative to the other products
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.