Market Analysis of Apple Inc

Market Analysis of Apple Inc

Apple is one of the most influential and recognizable brands in the world, responsible for the rise of the smartphone with the iPhone. Valued at over $2 trillion in 2021, it is also the most valuable technology company in the world.

The iPhone saw Apple ascend to one of the most valuable companies in the world, with revenue increasing from $37.4 billion in 2008 to $65 billion in 2010.

The success of the iPhone enabled Apple to launch new product categories, such as the iPad. Apple envisioned the tablet as a bridge between the smartphone and laptop, with the capabilities to be both.

As iPhone revenues have stagnated, Apple has looked for new ways to generate revenue from the iPhone. It launched Apple Watch in 2015, as an accessory to the iPhone which tracks various health and fitness metrics. AirPods were next, which paved the way for wireless headphones to become mainstream.

It has also built out its subscription services to include music and video streaming, video games, fitness, and cloud storage. This segment alone generated $53 billion in revenue in 2020, making it Apple’s second-largest segment.

Apple key statistics

• Apple generated $365 billion in revenue in 2021, 52% came from iPhone sales
• Apple Services was the second-largest division, responsible for 18% of revenue
• 230 million iPhones, 71 million iPads, and 20 million Mac and MacBook units were sold in 2020
• Apple’s home and wearables division grew 25% in 2021
• It sold 110 million AirPods and 43 million Apple Watches in 2020
• Apple Music has 72 million subscribers, and Apple TV+ has over 40 million
  

Apple revenue

Apple's revenue increased dramatically between 2009 to 2012, from $42.7 to $156.3 billion. During that period, Apple vastly increased its manufacturing volume through its partner Foxconn, which enabled global iPhone sales. It also saw the launch of the iPad, which added $19.1 billion in revenue in the first year of sales.

Apple quarterly revenue ($ billion)

 

Apple revenue by region

Apple has always been most successful in the US, it's home country. While revenues have increased in all regions, the Americas is responsible for 45 percent of all revenue generation and approximately 40 percent of that is from the United States alone.

Apple revenue by product

iPhone continues to be the main revenue generator, but its percentage has decreased in the past five years. Apple’s other hardware, which includes Watch, AirPods, HomePod, and Beats, has become a priority category for Apple, as a way to add more revenue to a single iPhone purchase. Services have also seen significant growth in the past five years.