Apple is striding towards generating $1 trillion in cumulative revenue this year from its iOS hardware and services since the introduction of the first iPhone in 2007. Financial analysts, Horace Dediu from Asymco reports that Apple has sold at least 1.2 billion units of the iPhone in the first 10 years; making it the ‘most successful product of all time’.
Dediu claims that sales from iOS products will reach $980 billion by the middle of 2017. The Cupertino tech giant will also be generation $100 billion in revenues from supporting services, which include app content sales – making for the total ecosystem crossing the unprecedented $1 trillion revenue mark. The report comes just a few days after Apple celebrated the tenth-anniversary of the first iPhone unveiling on January 9, 2007.
Developers who have been building apps for iOS have been paid $60 billion, with the rate of payments now reaching $20 billion per year. The iOS ecosystem not only generates revenue from the iPhone, but also from the iPad, iPod, Apple TV and Apple Watch that combined have 1.75 billion units in sales. This number is expected to grow to two billion units by the end of 2018.
Dediu’s research also points that there are an estimated 600 million iPhone units in use, making up for a combined 48 billion sessions everyday – with an average iPhone unlocking 80 times a day. “It is these instances of interaction and engagement which are desired by all businesses built on top of the ecosystem,” Dediu noted.
“As the install base of iOS increases and as users hire the devices to do more and spend more time with them the virtuous cycle of value creation will continue and accelerate,” Dediu mentions in his report.
According to Dediu’s research, iOS users spend more and are more loyal than those on alternative platform thus qualifying the platform as “premium” and thus adding to its value in the eyes of developers, content producers and service providers.
“More exciting is the apparent expansion of a network of ancillary “smart” accessories. The Apple Watch, the AirPods, Pencil and possible new wearables point toward a future where the iPhone is a hub to a mesh of personal devices. The seamless integration of such devices is what has always set Apple apart,” Dediu adds in his report.
According to this report, the iPhone is on a stronger and more resilient path, thanks its to its overall ecosystem.
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