Sixty-nine percent. That's the percentage of Apple's revenue that came from iPhone last quarter. Many see this as troubling, worrying that Apple is too dependent on the iPhone. On Tech.pinions, Tim Bajarin makes a case for why Apple is not a one trick pony. Some key points:
- The future seems bright for iPhone
- He's optimistic about iPad
- The Mac, the third leg in Apple's stool, is strong
- Tim sees two more legs on the way - Apple Watch and something related to TV
- He concludes with a few more thoughts (worth reading)
I'd like to build upon what Tim has to say.
First, as usual, Apple is in a 'damned if you do, damned if you don't' situation. Once, I was lamenting over the possibility of losing a large client. My boss at the time asked me, "Would you rather not have the client?" So, to those worried pundits and analysts, would you rather Apple not be succeeding with iPhone?
Second, the pie is getting bigger. The iPhone isn't representing a larger portion of revenue because the rest of Apple's business is tanking. Overall, the rest of Apple's business is doing very well. The iPhone is simply making the pie bigger. More pie is good.
Third, what's the alternative? Apple could ease off the iPhone pedal. Well that's a terrible idea. Alternatively, Apple could diversify by broadening its product offerings (Apple car, anyone?). Heck, it could even use some of its pile of cash (seemingly another headache issue for many pundits and analysts) to make acquisitions. Unfortunately, the business world is littered with failures that were a result of diversifying and/or making large acquisitions. In fact, Apple's focus on a few products is one of the keys to its success. More specifically, Apple's focus on what it is good at is what's key.
Finally, Apple is no more of a one trick pony than it was when it introduced the Apple II, the Macintosh, the iMac, the iPod... Get where I'm going with this? Apple has proven time and time again that it knows how to focus, innovate, market, execute, etc. It's proven time and time again that it isn't a one trick pony.