In its most recent financial report, Apple acknowledged an important fact: The company is unlikely to achieve a product as profitable as the iPhone. This statement, made during the Q4 2024 earnings call, reflects the central role that the iPhone continues to play in the company’s financial success, even amid new product lines and diversified investments.
During the period, Apple recorded revenue of US$94.93 billionexceeding Wall Street expectations and increasing by 6% compared to the previous year.
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This performance was primarily driven by the continued success of the iPhone, which alone generated revenue of US$46.22 billionrepresenting an increase of 5.5% compared to the same quarter last year. This performance reinforces the importance of the smartphone as a pillar of Apple’s revenue, even more than a decade since its launch.
Apple’s unshakable pillar
Despite successive launches in other segments, such as the Mac computer line and subscription services, the iPhone remains Apple’s most profitable product. CEO Tim Cook highlighted that while other products have shown growth, the iPhone remains a key driver of the company’s success, both in terms of sales and the installed base of active devices.
Apple’s services market, which includes subscriptions like Apple Music and iCloud, has grown 11,9%totaling US$24.7 billion in the quarter. Products such as the iPad and Mac also saw growth, although less significant than the iPhone.
On the other hand, the line of accessories, such as AirPods and Apple Watch, had a slight drop, going from US$9.32 billion in the previous year for US$9.04 billion. Despite this, the accessories line continues to be important for Maçã’s diversification strategy.
The bet on smart glasses and Apple Intelligence
Apple has been seeking to diversify its product lines and invest in new technologies. Among the most recent bets are smart glasses and artificial intelligence tools Apple Intelligence. However, the company had to abandon other ambitious projects, such as the development of an autonomous car, after years of investment without concrete results.
Although Apple Intelligence has the potential to integrate the company’s devices and generate more added value, these new products are unlikely to reach the same level of profitability as the iPhone. Cook emphasized that while Apple continues to explore new territories and technologies, the iPhone is still its main source of revenue and, more importantly, the brand’s defining product for consumers around the world.
Tests for manufacturing the iPhone 17 have already begun, and Apple hopes that this new model will continue to drive the company forward in the coming years. With the introduction of new artificial intelligence functions and increasingly deeper integration with the company’s services, the iPhone continues to be a key piece in Apple’s innovation strategy.
Challenges in the market and connecting with consumers
One of Apple’s biggest challenges is to keep demand for its smartphones high, especially at a time of possible saturation in the premium cell phone market.
Although the iPhone 16 has shown better sales than its predecessor, there are signs that demand may not continue to grow steadily, which explains Apple’s search for diversification and new technologies.
The company also needed to review its strategy for some products. Smart glasses, for example, are part of the effort to create a new segment that can add value to Apple’s ecosystem. However, analysts are skeptical about the potential for these devices to become as popular and profitable as the iPhone, which is currently the best product to generate consumer loyalty.
Sources: Financial Times, Apple Insider
Source: https://www.hardware.com.br/noticias/apple-produto-lucrativo-iphone.html