Apple revenue streams – additional information
Apple registered its highest revenue to date in 2018, when the company’s revenue stood at almost 266 billion U.S. dollars. Apple’s success over the years can be explained by strong brand loyalty, and the constant release of innovative products, updates and features. The iPod, for example, was one of the first successful releases of the company to the consumer market. Introduced in 2001, iPod sales accounted for an average of 19 percent of Apple's total global revenue up until 2009. The increased capacity of smartphones to play and store music has been pinpointed by industry experts as the main reason for the decline of digital music devices sales, such as the iPod.
iPod sales started to drop consistently, while Apple’s iPhone gained space in the market. iPhone sales have constantly increased since its market introduction in 2007, going from around 40 million units sold in 2010 to more than 230 million iPhones sold in 2015 alone. That year, iPhone sales generated more than 155 billion U.S. dollars in revenues for Apple. The increase in devices sales had a direct impact on the iPhone’s share of the company’s total revenue. In the beginning of 2009, sales of the iPhone accounted for about 25 percent of Apple’s total revenue. By the first quarter of 2018 (4Q '17 calendar year), this share was at almost 70 percent. As of 2018, the iPhone is the most profitable segment for Apple, generating 167 billion U.S. dollars for the company.
Apple’s iPad tablet, the Mac computer and costumer services are important revenue streams as well for Apple. Together, these three revenue streams generated about 25 billion U.S. dollars for the company in the first quarter of fiscal year 2019 (4Q ’18 calendar year). Other products such as Apple Watch, Apple TV and Apple Music generated 7.31 billion U.S. dollars during that same quarter.