Market analysts have continually been asserting that Google or Microsoft might beat Apple to become the first trillion dollar company. But, Horace Dediu, an analyst at Asymco, has released a report predicting that the Cupertino giant’s revenue generated via the iOS ecosystem is expected to cross $1 trillion by the middle of this year. This will also take Apple a step closer to achieving a $1 trillion market cap.
The smartphone market is largely dominated by Android at the moment but Apple has a declining but strong foothold on the same. Dediu is of the opinion that total revenue from the sale of iOS devices and services over the last ten years could hit $1 trillion by mid-2017.
He, in his blog post, says that the tech behemoth will have sold nearly 1.2 billion devices in the years of its existence. This makes it the ‘most successful product of all time,’ which sparked interest for other products as well. The iPod touch, the iPad, the Apple Watch and Apple TV have also been able to achieve sales of over 1.75 billion units over the last 10 years.
With regard to aforementioned figures, Dediu predicts that the revenue figures for iOS products would spike up to $980 million. Further, he adds that hardware isn’t the only stream of income for Apple. The software aspect of the same also needs to be taken into account, and this amounts to more than $100 million. This figure has been calculated using sales from its services including apps, subscriptions, and media.
And if you’re familiar with addition then you’ll notice that adding the hardware and software sales figure will easily amount to more than $1 trillion. This is a cumulative figure for the revenues for the iOS ecosystem. It will not exclusively make Apple the first-ever trillion dollar tech behemoth but definitely take it a step closer to achieving that figure.
The analyst further suggests that the craze for the iPhone as well as other products wouldn’t end anytime soon. Dediu says Apple users are a cult and the capabilities of this premium ecosystem keeps them locked in. The same has been explained in the official blog post as under:
There is a temptation to think that such a business is fragile and will be disrupted. Challengers appear daily and the number of iPhone “killers” is not measurable.
One can cite the billion users of Nokia phones which defected. One can cite the loyalty of BlackBerry users that evaporated. One can even cite the juggernaut of Windows and how it became impotent. One can cite the vast number of Android devices offered at low prices.
But there are reasons to believe that the iOS empire is far stronger and resilient.
Dediu further adds that the Cupertino giant is now starting off the second phase of its existence. This is in reference to the 10th anniversary of the iPhone, which was on January 9. To achieve the trillion dollar market cap milestone, Apple just requires a massive ‘big bang’ from the likes of a product similar to the iPhone or Macs.
Earlier, there have been speculations that the company’s autonomous vehicle project will enable it to cross the threshold. But Apple has now shuttered the said hardware project and is working on the software aspect of it. But Cupertino’s ambitious push into smart accessories could also help it increase sales and achieve the trillion dollar mark. In the coming months, Apple needs to deliver an innovative product that begs your attention and forces you to shell out money to buy it.
Then only will it pip Microsft’s current standards of creativity and beocme the first ever company to achieve the milestone.