John Gruber wrote about Bryan Clark’s article about Apple on TheNextWeb.
This is the part of Clark’s piece that got my attention. It’s a common refrain these days — just search Google for “Apple is too dependent on the iPhone”.
Clark makes it sound like this is because the rest of Apple’s business is in decline, whereas the truth is that the iPhone continues to grow at an astonishing rate that even Apple’s other successful products can’t match. Is it worrisome that iPad sales continue to decline? Sure. Would it be better for Apple if the iPad were selling in iPhone-esque quantities? Of course. But iPad still sold 9.9 million units and generated $4.3 billion in revenue last quarter.
Arguing that Apple is in trouble because the iPhone is so popular is like arguing that the ’90s-era Chicago Bulls were in trouble because Michael Jordan was so good. It’s true Jordan couldn’t play forever — and the iPhone won’t be the most profitable product in the world forever. But in the meantime, the Bulls were well-nigh unbeatable, and Apple, for now at least, is unfathomably profitable.1 Just like how it’s better to have loved and lost than never to have loved at all, it’s better to have tremendous success for some period of time than never to have had tremendous success in the first place. Right?
What I don’t get is why Apple gets singled out for its singular success, but other companies don’t. 92 percent of Google’s revenue last year came from online advertising. And more importantly, I don’t get why Apple’s non-iPhone businesses are so quickly written off only because they’re so much smaller than the iPhone.
Apple’s total revenue for last quarter was $51.5 billion. The iPhone accounted for $32.2 billion of that, which means Apple’s non-iPhone business generated about $19.3 billion in revenue. All of Microsoft in the same three months: around $21 billion. All of Google: $18.78 billion. Facebook: $4.5 billion. Take away every single iPhone sold — all of them — and Apple’s remaining business for the quarter was almost as big as Microsoft’s, bigger than Google’s, and more than four times the size of Facebook’s. And this is for the July-September quarter, not the October-December holiday quarter in which Apple is strongest.
My guess is that these “journalists” want to drive traffic to their articles and it is easy to mislead uninformed readers.
Leave a Reply