What are Apple’s Five Most Profitable Products?

The world’s giant company, Apple, was founded in 1976 and became the first U.S. corporation, which reached $1 trillion in market cap in 2018. Unsurprisingly, Apple’s spectacular growth in sales, profits, and share price have historically been pushed by substantial sales of its iPhone products.

Though, as sales of their iPhone and other technology hardware devices have declined, the giant has made aggressive efforts to become one of the world’s major digital services providers.

A series of ups and downs define Apple’s fiscal year 2019. Overall, they were successful in increasing their revenue from services, while their earnings from their most popular products, which are iPhones and MacBook laptops, dropped.

Significantly, For the Q1 of 2020, Apple had forecast revenue among $85.5 billion and $89.5 billion. The giant stated revenue of $91.8 billion and a profit of $22.2 billion, a record for both net income and revenue.

The App Store and Apple Music lead Apple’s services business. In May 2019, Michael Olson, Piper Jaffray analyst, declared that Apple developed its service business and became worth $502 billion.

The Giant company posted sales of $260.17 billion on a net income of $55.25 billion in the fiscal year of 2019. Furthermore, earnings came in at $4.18 on a per-share basis in the Q1 of 2019. This was an all-time high for the company. However, in Q1 of 2020, earnings per share were up to $4.99.

Additionally, for the fiscal year 2019, Apple’s iPhone business estimated nearly 54.7% of total sales. The company’s growing services segment made up about 17.7% of revenue, ahead of the Mac, which generated 9.8% of total revenue. Moreover, the wearables, home, accessories segment held 9.4% of sales, and the iPad was valued for 8.1%.

Let’s see Apple’s five most profitable business lines.

iPhone 11 has become Apple’s best-selling smartphone

Let’s start with the iPhone. Apple’s core product has ranked amongst the top five smartphone vendors in the world since 2009. For the Q1 of 2020, ending on December 28, 2019, iPhone sales were $55.96 billion. Significantly, Apple’s reported profit and revenue for the quarter were higher than Wall Street analysts had prognosticated. The Q1 of the fiscal year is a critical period for Apple which is the holiday season and the three most profitable months of the year: October, November, and December.

Significantly, Apple’s ‌iPhone 11‌ has become Apple’s best-selling smartphone since it was released. According to Tim Cook, the demand for iPhone 11 and iPhone 11 Pro models was incredibly strong.

The services segment posted revenue of $46.3 billion

Moreover, Apple’s Services segment posted revenue of $46.3 billion in the fiscal year 2019 and $12.72 billion for the Q1 of the fiscal year 2020.

Additionally, Apple’s subscription business (including subscription apps) raised 40% year-over-year. This revenue comes from selling a range of services, which are Apple Music subscriptions, iCloud storage services, and AppleCare warranties. According to Apple, there are over 450 million paid subscriptions on Apple’s platform.

Mac generated $25.7 billion in sales

Apple’s personal computer business generated $25.7 billion in sales in 2019. Mac’s contribution to Apple’s increase has consistently decreased as the personal computer industry has experienced declining demand globally. For the Q4 of the fiscal year 2019, Mac products only accounted for about 11% of Apple’s revenue.

iPad held at 36.5% a share

The next one is the iPad. When the company announced its iPad in 2010, it immediately became the first commercially successful tablet computer. In the first three months after it was released, the device sold up to three million units. As of the Q4 of 2019, the iPad held a 36.5 % share of the global tablet market.

Wearables, Home, and Accessories

And finally, Apple’s Wearables, Home, and Accessories segment contain devices such as AirPods, Apple Watch, and HomePods. The segment reported $24.5 billion in sales during the fiscal year 2019.

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  1. Tami Peschel 16.04.2021

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