In this infographic, you can appreciate the evolution of Apple by looking at how its central products sales evolved in the decade 2008-18.
Taking a long-term perspective on how companies’ revenue streams evolve is interesting to understand also how their business strategy changes over time.
By taking a long-term look at the decade 2008-18 four main products (iPod, iPad, iPhone, Mac) and its other products, a few insights are coming up:
- Over the years Mac remained a stable product. However, Apple, which started as a computer company had in the range of 10-15 years convert itself to become an entirely new company, powered up by a new business model and a whole new set of products. The Mac once the main product of the company, which made up most of its revenues. Over the years became a “niche” compared to the iPhone. In 2018 all the Mac products made up about 10% of the total net sales for Apple. While we can expect the Mac to still be relevant in the coming decade in the professional world, and its net sales might remain relatively stable over time. It might be possible that its sales share in comparison to other products might get smaller and smaller.
- The iPhone has been a massive success. Nothing new about it. Yet it is interesting to notice how the iPhone cannibalized the iPod. Where in conventional business strategy, cannibalization is something to avoid in most cases. In this particular scenario, the iPhone did cannibalize the iPod, yet it also opened up a much broader market. This blue ocean made Apple reach a completely different scale, by bringing it in the hands of mass consumers. Today the iPhone represents 63% of Apple’s net sales
- From 2011-14 iPad and related product and services surpassed the Mac. This might have given the impression that the tablet market was ready to take over the portable computer market. Yet, that didn’t happen, or at least not as imagined. Starting 2015, the Mac picked up momentum and in 2018, the Mac still generated more sales than the iPad. Therefore, Mac and portable computer, in general, have shown a resilience that made it a relatively stable product for Apple
- The iPod has been a massive success as Apple also introduced a new way of consuming music via the iTunes. But the iPod eventually has become more of a transitioning product that has ultimately led to the iPhone and iPad. Today the iPod sales are comprised of other products
- The other products sales have in 2018 more than doubled compared to 2014. Other products comprise AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and other Apple-branded and third-party accessories. Some of those products might turn out to be hidden gems
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