Anyone who follows Apple knows the company hast put up some huge financial numbers since Steve Jobs died in 2011. CEO Tim Cook might be The King of Accessories and lacking that vision thing, but numbers are hard to argue against.
iPhone accounts for almost 60-percent of Apple’s business, with Services, the Mac, and iPad bringing up the rather hefty rear, but littered among the company’s financial items are other products. Collectively, they’re big business.
For as long as I can remember Apple was happy to divulge quarterly unit sales for iPhone, iPad, and Mac. No more. That puts Apple on equal footing with competitors who have never publicized their hardware numbers. Not Samsung, not Google, not Amazon, not Microsoft. Nobody. So, Apple is just leveling the playing field, so let the guesstimations begin.
Apple has plenty of accessory products that bring in big numbers, too; collectively, not individually. If guesstimations are the order of the day, I can do it, too.
Apple Watch – let’s assume that Apple can sell about 24-million Watch models each year, and that the average selling price– which includes Watch bands– is about $350. That’s an annual run rate of more than $8-billion.
AirPods – it’s been two years since AirPods launched and plenty of $39 competitors have hit the streets, but recently I read that Apple’s next version will sell about 24-million in the year after they’re launched. Apple won’t say how many have been sold, and most guesstimates don’t agree with other guesstimates, so let’s go with mine. 24-million AirPods at about $150 each is another $3.6-billion in revenue.
You see where this is going, right? Already we’re over $10-billion in annual revenue on only two products.
HomePod – nearly every guesstimator agrees that Amazon Echo and Google Home sell the most talking speakers, and that Apple’s HomePod has less than 10-percent marketshare. So what? HomePod is priced at $350. Even 5-percent of the 50-million sold in the U.S. alone is a healthy number, that exceeds $1-billion in the U.S. and likely going at a $2-billion annualized run rate worldwide.
iPhone Cases – for this category I’m going to use my imagination on some imaginary numbers. Apple’s iPhone cases probably average about $40 each. Apple sells over 200-million new iPhones each year. If only 15-percent of Apple’s iPhone customers elect to buy an Apple-branded iPhone case, then 30-million cases sold at $40 each brings in another $1.2-billion.
Do the math. Those four products alone account for about $15-billion in revenue. Name another competitor that sells that kind of kit that brings in that kind of money.
It ain’t Google, folks. Sure, the App Store brings in even more, and Services is Apple’s fastest growing business– faster than iPhone, iPad, and iPod, and Tim Cook might be The King of Accessories, but every technology company on earth would love an accessories business that brings in $15-billion a year.
Those are big numbers.