Every single year, a familiar pattern emerges. Apple every fall introduces a brand new iPhone and critics yawn. “There’s not enough there to move the needle”, some exclaim. “The new iPhone is barely any different than the previous year’s model,” some eagerly point out. And in the months that follow, we see a smattering of reports alleging that iPhone sales are low, that production is being scaled back, or that Apple has generally lost its ability to innovate in the smartphone space altogether.
The common thread here is that pundits and analysts continue to underestimate the freight train that is the iPhone. Sure, not every new model is replete with bells and whistles. And sure, some models sell less than others. But if we zoom out and take a bird’s eye view of Apple’s iconic smartphone, the iPhone remains an unrivaled success.
iPhone revenue set a new record for Q4
This scenario played out just recently when Apple posted its earnings report for the September quarter. Despite concern that iPhone sales would fall flat, Apple’s earnings report revealed that iPhone sales remain incredibly strong.
When all was said and done, iPhone-based revenue for the quarter checked in at $46.22 billion. The figure is nearly $2.5 billion more than iPhone-based revenue during the same quarter a year ago.
During Apple’s earnings conference call, Tim Cook noted that the $46.22 billion figure set a record for the September quarter. Take a second and think about this: people have been saying, “The iPhone has peaked!” for years. And in 2024, 17 years after the original iPhone launched, and in the face of immense competition from Android, Apple just set a record for iPhone revenue for the September quarter. It’s astounding.
Apple doesn’t release quarterly sales figures anymore, so we have to rely on overall revenue to gauge the vibrancy of iPhone sales. That said, one of two things is happening: 1) iPhone sales are on the rise, or 2) iPhone sales are somewhat flat, but more and more users are opting for the pricier Pro models. Regardless, the actual answer doesn’t matter because the result is the same: the iPhone remains a driving force of revenue for Apple.
Consider this: iPhone revenue during the September quarter of 2020 came in at $26.4 billion. Within four years, iPhone revenue skyrocketed by more than 50%.
The iPhone might have brighter days ahead
Looking ahead, it remains to be seen if Apple Intelligence will prompt a swell of iPhone upgrades. But often overlooked is that most users aren’t upgrading to new iPhone models every year as we have seen in the past. Instead, iPhone users are holding onto their devices for longer than ever before.
Therefore, it stands to reason that many people who purchase new iPhones are coming from devices that are 3-6 years old. Put differently, subtle and incremental improvements to the iPhone don’t deter existing users from upgrading. Rather, most are upgrading from older models. For these users, a new iPhone represents a major leap forward in both performance and features.
The post The iPhone is a freight train and shows no signs of slowing down appeared first on BGR.
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The iPhone is a freight train and shows no signs of slowing down originally appeared on BGR.com on Fri, 1 Nov 2024 at 08:54:00 EDT. Please see our terms for use of feeds.