Tesla CEO Elon Musk, known for his entrepreneurial achievements and visionary ideas, was left in awe by a recent feat from tech giant Apple Inc. (AAPL). Bloomberg journalist Jon Erlichman revealed on X (formerly Twitter) that Apple’s iPhone sales are currently at an astounding rate of 1.4 million units every two days. This staggering figure represents an incredible accomplishment for Apple, considering it took a full year to sell the same amount of iPhones in the first year after its launch. Musk’s response to this news was a simple but expressive “wow.”
While some hailed this as a testament to Apple’s success, others offered a more cynical perspective. They pointed out that Apple sold a significant portion of these iPhones to AT&T, which then resold them to independent dealers. This distribution model, according to these critics, could potentially inflate the sales figures.
Despite the debate surrounding the sales figures, there’s no denying the iPhone’s impact on Apple’s success. Apple has stopped reporting iPhone unit sales, but the product generated a whopping $39.3 billion in revenue during the June quarter, accounting for roughly 46% of Apple’s total revenue. During the earnings call, CEO Tim Cook highlighted record iPhone sales in emerging markets like India, Indonesia, Mexico, the Philippines, Poland, Saudi Arabia, Turkey, and the UAE. The company also reported a record number of iPhone users in the June quarter.
The iPhone’s journey started on January 9, 2007, when Apple co-founder Steve Jobs unveiled the revolutionary device at Macworld 2007 in San Francisco. The iPhone, billed as a combination of a phone, iPod, and internet communicator, was launched to consumers on June 29, 2007, at a price of $499 for the 4GB model and $599 for the 8GB model. Its immediate popularity and success propelled Apple’s revenue growth from $20.7 billion in 2006 to over $100 billion in 2011. The iPhone’s contribution to Apple’s revenue is substantial, with iPhone revenues reaching $200 billion in the 12 months ending September 2023. The product has played a pivotal role in Apple’s valuation, contributing significantly to its market cap exceeding $3 trillion.
The iPhone’s success extends beyond revenue generation. It has created a sticky ecosystem for Apple, encouraging users to purchase other Apple products like Apple Watch and AirPods. The iPhone also drives revenue for Apple Services, including iCloud.
Despite its iPhone dominance, Apple is still searching for its next big product. The VisionPro, launched earlier this year, fell short of expectations due to its price and unwieldiness. The Apple Car project was abandoned due to a lack of a clear path to profitability that justified the required investment.
All eyes are now on the upcoming iPhone 16, set to launch next week. The first phone in Apple’s lineup powered by Apple Intelligence is anticipated to kickstart a strong upgrade cycle and further boost sales. Apple’s stock closed Thursday’s trading session up 0.69% at $222.38.
It’s clear that Apple’s success is heavily intertwined with the iPhone’s continued popularity. While the future holds new challenges for the company, the iPhone remains a vital asset in Apple’s pursuit of innovation and growth.
