Home iPhones & iPads Are Nearly 70% of Apple’s Revenue

iPhones & iPads Are Nearly 70% of Apple’s Revenue

Today Apple released its third quarter earnings. Perusing the revenue figures, I was struck by just how much the iPhone and iPad have overtaken computers and music as Apple’s main form of revenue. The iPhone and iPad combined now make up 68% of Apple’s entire revenue, compared to just 18% for what were (until the last couple of years) considered the main form of computers: desktops and “portables.” What’s more, music is now a relatively small part of Apple’s revenue – the iPod contributes just 4.6% and iTunes sales about 5.5%.

Specifically, the iPhone is responsible for nearly half of Apple’s revenue (46.6% to be precise). The iPad contributes 21.2% towards Apple’s revenue. Computers, both desktops and portables (MacBooks), contribute just 17.9% of Apple’s total revenue. It’s been no secret that iPhones and iPads are very profitable for Apple, but these figures ram home just how much the computing world has changed. Who would’ve thought even five years ago that computers and music combined would make up less than 30% of Apple’s revenue?

These figures are all from the third quarter of 2011. The data will vary a bit from quarter to quarter, depending on when Apple releases new models of its various products.

It’s not just the total figures that are startling. It’s the growth. iPhone revenue grew 183% year over year, while the iPad grew 142% (note: includes the peripherals of those devices).

In comparison with the same quarter last year, combined the iPhone and iPad made up just under 48% of Apple’s total revenue in Q3 2010. Computers were 28% of revenue in the same period, with music nearly 18%.

Computers, though, are still showing growth. It’s really only the iPod which is declining. The iPod sold 7.535 million units last quarter – down 20% from the same quarter a year ago. This is not surprising because as the iPhone’s storage capacity has increased, so has its ability to double as an iPod.

These latest earnings figures from Apple are very revealing about where the world of computing is not only heading, but seems to have already arrived! Smartphones and tablets dominate Apple’s earnings and they are increasingly dominating our online life. Sure the difference is much more stark with Apple, as the iPhone and iPad are market leading devices in their respective categories. But these figures – and the difference year over year compared to computing and music devices – clearly shows the phenomenal impact that smartphones and tablets have had in the computing world.

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