Comment by harpratap
6 years ago
Because tying your company to one product is an economic disaster. It's very clear that drop in iPhone sales causes a very direct impact on Apple and the reason why they started moving towards SaaS model. But their SaaS isn't big enough yet. If today China retaliates with ban on Apple, the company is pretty much dead because no other country is capable of manufacturing at the scale Apple needs it to.
According to their last earnings - 50% of their revenue was outside of the iPhone.
You also have to remember even the Mac by itself brought in higher revenue than all but the top 100 companies in the US and it’s only 10% of Apple’s revenue. The watch is a bigger revenue generator than the iPod ever was.
The Apple watch, Airpods and everything else except Macs are tightly coupled to the sale of iPhones. If you stop making iPhones, the rest is pretty much dead too.
AirPods are Bluetooth. The Beats division of Apple was already profitably selling headphones before Apple bought them. You act as if it would be a great technical hurdle to make the Watch work with Android. Apple is making the Watch a more standalone deceive with every release.
There is also the iPad that gets you another 10%. If just 10% of Apple’s revenue from the Mac puts it in the top 100, what does 30% do? If Apple created the “Mac company” it would still be the most profitable computer company in the world. It makes more selling Macs than any other company makes selling phones besides maybe Samsung.
But isn’t kind of silly talking about Apple being dependent on the iPhone when after two decades and billion of dollars, Google’s profit is still 90% from ads?
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