Apple's revenue boost due to iPhone

Apple announced its Q3 profits yesterday during a conference call with investors.

Apple's iPhone helped bump up revenue which still fell slightly shy of expectations. The device now accounts for 39% of Apple's business, generating $4.6 billion in revenue on sales of nearly 7 million units during the quarter.

In an unusual move Steve Jobs appeared online during the conference call. According to Jobs, the iPhone "had become too big to ignore." Describing the App Store Jobs added "customers will download the 200 millionth app" tomorrow and that "competitors are scrambling to copy our App Store."

Looking to the future Jobs believes the company has a strong product line-up and is positioning itself well for the future. "We may get buffeted around by the waves a bit, but we'll be fine and stronger than ever," Jobs said.

During the days trading Apple (AAPL) closed just over 7% down after fears the announcements wouldn't be as positive as predicted. After hours trading put the price up over 13% at the time of writing.

Jobs also claimed that "Apple outsold [Research in Motion] last quarter." RIM manufacturer the Blackberry range of devices. He also asserted that measured by revenue, Apple is now the "third-largest mobile phone supplier," behind Nokia and Samsung and ahead of Sony Ericsson. Joe Wilcox, Apple-Watch writer, said "the claim is overstated. RIM sold 6.1 million units during its fiscal second quarter. But RIM's quarter doesn't coincide with the calendar quarter. RIM announced earnings on Sept. 25. So, it's a bit premature to say that Apple beat RIM, although based on my estimates Steve is probably right."

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19 Comments

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I bought an iPhone a few months ago, and it's probably 'changed my life'. My previous phone was ancient, so it was a big step up. I think we can generally agree that the iPhone doesn't do _everything_ that other phones do (copy and paste for example) or necessarily even do it as well (the camera for example), but what it does do it does very well. Battery life is an issue as techbeck above says, but I can generally survive a day with fairly heavy usage if I'm careful and turn of things not needed (wifi/3G etc). I think thats probably on-par with other 3G phones based on what friends say...

It may not be for everyone, but it's certainly great for me!

That's true. Though, I remember when I upgraded from an ancient nokia phone that just did texts and calls to a top-of-the-line smartphone that did *everything* (except infra-red and haptic feedback, it does everything else). huge step up, changed my life. pretty sure it'd do same thing for you as the iphone. much much cheaper though. hard to compare unless you've tried other smartphones.
for instance, you might not even know if you like touch screens until you've tried a qwerty. i tried a touch screen first and loved it. then i tried a touch screen + qwerty and it was even better!

The only bad thing I have really heard about hte iPhone is its battery life is a joke. I may have gotten one if the battery life was longer.

Let me tell you some things then :P. No video recording, no video calls, bad camera, no copy n paste, bluetooth only works for headset (nothing else), proprietary connectors, no way to extend or remove memory, battery has to be serviced, no mms/ms office/flash (jailbreak apps?), app store (good for them, bad for us), no next-g, no hsdpa or hsupda, ...

App Store is a good thing, it makes iPhone apps easy to access and install. MS Office and iWork files can be opened, why you'd want to create them on such a small device is beyond me. The only two on that list that really make a difference to me are video recording and crippled bluetooth.

One thing I don't understand is the default apps. Why have a Contacts AND a Phone app? Why have a built-in Stocks and Weather app, when that information can be found easily with Safari? What's the point in the Notes app?

*yawn* I see are raving Mac buddy has already plotzed all over this news too... What's amusing is LTD just claimed recently that Macs were a HUGE revenue for Apple. Now apparently it's the iPhone. Or is it widgets? Or maybe it's that their revenue boost isn't HUGE?

Ahem. Great job, Apple. Now, could you drop your computer line so we can get you out of our faces?

Widgets are free. I don't see how they would make any money from them.

It is possible that at different times the two parts of the business have provided big revenue boosts. Just because right now it's the iPhone, doesn't mean it wasn't the Mac before.

GreyWolfSC said,
*yawn* I see are raving Mac buddy has already plotzed all over this news too... What's amusing is LTD just claimed recently that Macs were a HUGE revenue for Apple. Now apparently it's the iPhone. Or is it widgets? Or maybe it's that their revenue boost isn't HUGE?

Ahem. Great job, Apple. Now, could you drop your computer line so we can get you out of our faces?

Apple has many things going well for them so LTD is correct in what he is saying.

PureLegend said,
Widgets are free. I don't see how they would make any money from them.

It is possible that at different times the two parts of the business have provided big revenue boosts. Just because right now it's the iPhone, doesn't mean it wasn't the Mac before.

I was referring to the abstract term "widget" not the real "applet" model. But yes, I understand that not all companies have a consistent revenue flow from the exact same product lines every quarter. I was more referring to the almost rabid commenting about Apple's income lately.

GreyWolfSC said,

I was referring to the abstract term "widget" not the real "applet" model. But yes, I understand that not all companies have a consistent revenue flow from the exact same product lines every quarter. I was more referring to the almost rabid commenting about Apple's income lately. ;)

Sorry, but the only "rabid commenting" I have seen lately is from you. Seems like you track down every Apple news item just to say something. So, you care.

Soldiers33 said,
most people just buy the iphone to look cool, but truly they know it sucks. :)


Anything that gives RIM a run for its money can't actually suck.

The "I bought an Apple product to look cool" argument no longer holds water. Apple has been doing well for far too long to attribute their success to mere fashion.

You need to wrap your head around the remote, distant, unlikely possibility that people actually like what they have bought and are satisfied with it.

LTD said,
Anything that gives RIM a run for its money can't actually suck.

The "I bought an Apple product to look cool" argument no longer holds water. Apple has been doing well for far too long to attribute their success to mere fashion.

You need to wrap your head around the remote, distant, unlikely possibility that people actually like what they have bought and are satisfied with it.



Thing is Apple and the iphone dont do anything like what is possible on a bb using BES. Not sure why everyone is comparing RIM to apple and other cell phones. BB with BES is more like a mobile computer rather than a cell phone. The problem with RIM is theyre main source of revenue is corporate users. These companies do not upgrade phones very often. Thats why you still see tonnes of people using BB 7xxx series.

And yes you cannot use the that old ass argument that the iphone only sells cause its a fashion statement. Just like the wii. People continuly say they only sell cause theyre fads..but theyve been out for so long now, it is no longer a fad and noone can really argue that.
The iphone sells cause its marketed extremely well. Yes it doesnt do everything and is missing numerous features other phones have, but what it does do, it does extremely, well besides the camera. There is still not a touch phone on the market that is as intuitive to use as the iphone. And Im no fanboy. I dont like touch phones but if I were to get one Id get an iphone easily. Right now though Im sticking to my n95.

plan-9 said,


Thing is Apple and the iphone dont do anything like what is possible on a bb using BES. Not sure why everyone is comparing RIM to apple and other cell phones. BB with BES is more like a mobile computer rather than a cell phone. The problem with RIM is theyre main source of revenue is corporate users. These companies do not upgrade phones very often. Thats why you still see tonnes of people using BB 7xxx series.

And yes you cannot use the that old ass argument that the iphone only sells cause its a fashion statement. Just like the wii. People continuly say they only sell cause theyre fads..but theyve been out for so long now, it is no longer a fad and noone can really argue that.
The iphone sells cause its marketed extremely well. Yes it doesnt do everything and is missing numerous features other phones have, but what it does do, it does extremely, well besides the camera. There is still not a touch phone on the market that is as intuitive to use as the iphone. And Im no fanboy. I dont like touch phones but if I were to get one Id get an iphone easily. Right now though Im sticking to my n95.

I think i actually agree with this. Has hell frozen over?

The iPhone App Store has plenty of apps that allow you to store and view your files - all kinds, from spreadsheets to .doc files on your iphone. Some allow you to transfer wirelessly, too. Some allow you to edit your files over the web.

But my favourite is Jaadu. It allows me to set up my Mac as a webserver. I can then simply my computer over the 3G network, and control it, run apps, edit any file, print, etc. Probably nothing special - it's a VNC client, but here's the link:

http://www.jugaari.com/

LTD said,
Anything that gives RIM a run for its money can't actually suck.

The "I bought an Apple product to look cool" argument no longer holds water. Apple has been doing well for far too long to attribute their success to mere fashion.

You need to wrap your head around the remote, distant, unlikely possibility that people actually like what they have bought and are satisfied with it.

I agree, but there are a lot of people who buy things for looks, not functionality. And this is good for Apple since I believe a lot of their consumer market are younger. Correct me if I am wrong. I am just glad they recovered their sanity and dropped the price of the iPhone. $600 was rediculous.

When will RIM ditch BES and use ActiveSync instead like everyone else does? I like the Blackberry but I won't look at the phone until they get with the times.

SK[ said,]When will RIM ditch BES and use ActiveSync instead like everyone else does? I like the Blackberry but I won't look at the phone until they get with the times.


Why would they ever do something that stupid? Do you even know what BES does?