Apple's iOS
Ecosystem is on course to generate over $1
Trillion in revenues for the company by the
Middle of this year, according to Asymco analyst Horace Dediu.
Dediu's
prediction is based on several factors, starting with an expectation that
Apple will have sold at least 1.2 billion iPhones in its first 10 years, earning it the rank of "most successful product of all time" and laying the foundations for the company's iPad,
Apple TV,
iPod touch, and
Apple Watch categories.
In its*first 10 years, the iPhone will have sold at least 1.2 billion units, making it the most successful product of all time. The iPhone also*enabled*the iOS empire which includes the iPod touch, the iPad, the Apple Watch and Apple TV whose combined total unit sales will reach 1.75 billion units over 10 years. This*total is likely to*top 2 billion units by the end of 2018.
Dediu claims
Revenue From iOS device sales will total about $980 billion by the
Middle of this year, and adds to that estimate more than $100 billon in revenues
From supporting services (including app content sales), putting the ecosystem's total worth above the $1
Trillion mark.
The analyst **tes this excludes payouts to iOS app developers of around $60 billion, with the rate of payments **w reaching $20 billion per year. Those numbers would appear to tally with comments made by
Apple CEO
Tim Cook last August that the company has paid out more than
$50 billion to developers over the lifetime of the
App Store, which first launched for the iPhone in 2008.
Dediu points to the locked-in nature of Apple's
Ecosystem ensuring the iPhone's resilience and longevity, despite strong competition
From so-called "iPhone killers" that come and go, while its robust feature set and attached services continue to
Earn it the market reputation as the premium smartphone to beat.
In addition, the analyst claims that Android users are **w more likely to switch to iOS rather than the other way around ? a trend supported by previous reports
From both
market analysts and
Apple, including, **tably, comments made in the company's
Q4 2016 earnings call.
Dediu ends by predicting **t a**ther "Big Bang" for the iPhone, but a "process of continual improvement" as the smartphone enters its second decade. Indeed, the analyst expresses more excitement for its network of "ancilliary smart accessories" like the
Apple Watch, the AirPods,
Apple Pencil, and other possible new wearables that point toward a future where the iPhone is a hub to a mesh of personal devices. "The seamless integration of such devices is what has always set
Apple apart," Dediu concludes.
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Tag:
Asymco
Buyer's Guide:
iPhone (Neutral)
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