iPhone the 800 lbs Gorilla
Originally published at www.bluewhaletail.com on February 13, 2015.
Apple sold 346 Million iPhones worth $214 Billion in the past two years. At the same time, Apple sold 36 Million Macs worth $46 Billion and 138 Million iPads worth $61 Billion. That means the combined sale of Macs and iPad is still half of what the iPhone brings in for Apple.
Here is a great article by Jason Snell on SixColors.com and this quote stands out for me in the article:
I believe Apple is truly a company that is always looking at the big picture, I really do. The iPhone and iPad and Mac all work together, using iTunes and iCloud and even Apple Pay as infrastructure, in a harmonious way. But at the same time, it’s hard not to look at the size of Apple’s iPhone business and wonder how the success of the iPhone affects Apple’s decision-making.
Apple did have a great quarter, one of the best among any company in the world and just to iterate what that means here is a beautiful article by M.G. Siegler — Apple, The Oil Company?
Not to say that Apple is ignoring the other aspects of their business but the iPhone definitely stands out in that pie chart. And it truly makes sense for Apple to concentrate on the iPhone, however I think Apple is now at a very comfortable position. A position where they can still concentrate on the iPhone and create new eco-systems around the iPhone. Samsung tried doing this and failed miserably with the Samsung Gear watch. But Apple instead of rushing into releasing a watch, took their time, have thought about the product and is now laughing after 2 generations of Samsung Gear watch.
Another quote from Jason Snell’s article:
For the iPod to become a hit product, it had to connect to both Macs and PCs. Apple initially didn’t support the PC, then did so reluctantly (with third-party jukebox software), and finally did so through iTunes for Windows, which Steve Jobs famously likened to a glass of ice water to people in hell.
For the Apple Watch to become a hit product, it just needs to please a bunch of iPhone users. The iPhone market is large enough that the Apple Watch doesn’t need to stake out new ground for Apple, at least not yet. (I don’t think the Apple Watch will ever connect to Android devices, but it’s possible that one day the Watch might be such a device unto itself that it simply won’t care if you have a phone nearby, or what’s on it.) It’s going to be years, if ever, before the Apple Watch becomes a product that isn’t made for iPhone users.
In terms of eco-system, there is already Apple Pay which is amazing, Car Play has had good reviews and the Apple Watch is set to come out in April 2015 and then there are many more areas where Apple can go.
Apple TV could be the next hardware to be integrated with the iPhone. I don’t know if Apple would ever build a TV from scratch of will stick to the current model (box that connects to your TV), however if my Apple TV can understand gestures and voice input viola. Today my iPhone connects to my Apple TV but has very basic functionality. Why not handing off a TV show that I was watching on Netflix or Hulu on my iPhone/iPad to my TV when I want to. Why can’t I create and manage my queue on my iPhone or iPad and watch it later on Apple TV. Allow me to answer a phone call while watching TV when my phone isn’t close enough (I’m just lazy to get up and grab it). The possibilities are endless.
Home security — iPhone or iPad can be at the center of it. There are 3rd party apps that already do this. There are a ton of accessories that you can use it along side your iPhone or iPad to track your health, to take great pictures, to measure moisture, to take temperatures, etc.
The possibilities are endless.
Ever since I have owned an iPhone, if there is an accessory or gadget that works with my iPhone; thats half of my decision make done. The remaining depends on how good the product is, quality, aesthetics, integration etc. And when Apple builds something, it takes care of all that.
I think the stronger & bigger that gorilla is, the better.