The evolution of Apple’s business

Amador Palacios
2 min readMar 28, 2021

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For many years the business and therefore Apple’s growth depended on a star product that generated most of its sales and profits.

The iPod was a flagship product that also started the music download business that made Apple rise from its near ashes.

Then in 2007 came the iPhone and with it the prodigious decade of increasing business and company value.

But the iPhone came with an insurance under the arm that are its applications and all the business related to them.

IPhones are sold with a profit margin that is the highest in the market and it is estimated that Apple takes more than 90% of all the profits generated by the sale of mobile phones in the world.

The other companies that sell mobile phones earn very little compared to Apple, they limit themselves to subsisting in the market and trying to gain a foothold in the part of high-end mobiles that have the most profit margin.

This high-end market is dominated by Apple, but its sales have also evolved in recent years, and Apple no longer depends so much on the sale of its mobiles. An important part of their income is provided by the iOS “ecosystem” and all the APPs that work in it.

If we observe the evolution of income in recent years, we see that the proportion due to mobile phones has decreased and that based on the “downloads” of its platform has increased.

You no longer need to just sell so many iPhones to make a profit.

And therefore their business has become more stable, and in this way the defense that Apple makes of its users (in terms of the defense of their privacy and other concepts) is also better understood, since those users report large profits although not buy mobiles, as long as they continue to use and download the services it offers.

It is proven that iPhone users are the most active when it comes to “using” iOS services, and that is something that Apple wants to maintain at all costs.

In recent years, not as many mobile phones are sold as before, but “services” are still being sold through them, and Apple’s business has not diminished.

In the year 2020 Apple entered 294,135 million dollars, of which 147,421 million corresponded to the iPhone and 146,714 from other Apple activities, most of the iOS ecosystem.

This has been well received by investors who have continued to push the value of the company public.

What will happen in the future? ??????

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Amador Palacios
Amador Palacios

Written by Amador Palacios

I am an electronic engineer with more than 40 years working in industry. I like to reflect on Technological and Social issues

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