Apple’s Dependency on the iPhone

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Apple has increasingly grown dependent on iPhone revenue for its profits. This was identified a fair while back and although it is the case the situation hasn’t changed much even though Apple is actively promoting its other products. The iPhone continues to play a central role in Apple’s overall very healthy cash balance.

Last year, as this phenomenon was continuing unabated investors felt nervous for a few days. That though lasted a very short time.

Accepted

Investors though have moved Apple’s stock value up significantly. The reliance on the [iPhone is a concern] but they are turning a blind eye. The reason: the iPhone continues to do incredibly well. Android models have been leveling the playing field in that they are providing a cost effective alternative or a more robust product than the iPhone. Regardless, most people hold Apple’s iconic phone in high regard and continue to want one for a variety of reasons.

Other Products are Excellent but…

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Apple’s product portfolio, although generally considered Job’s legacy to the company, are all considered top of the line. However, nothing has caught on like the iPhone. The iPhone is integrated into all matters of things and is still considered leading edge technology.

In the most recent earnings report, Apple did exceedingly well. It is expected this trend will continue. As long as it does, investors seem to be comfortable with Apple’s reliance on the iPhone.

The Potential

Should the iPhone start to falter or for that matter the whole Smartphone industry due say to saturation, the vendors all have fallback positions. Of all the vendor’s though, Apple looks sterling.

As an example, the AppleTV potential has still not properly been tapped. Good for both hardware and recurring revenue streams, it could make Apple proud. Like other Apple products, the AppleTV stands apart from the crowd as the best whether that’s true or not. With a bit of leveraging the product for sales, slack from declining iPhone sales could be absorbed from this product group alone.

Computers

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Although Apple computers have historically been considered expensive but very high quality, the expensive emphasis is changing. They are now being viewed much more fondly for fitting into the corporate and personal environment with only a slight margin of cost over the competition.

The perception of expensive regarding Apple’s product line is shifting. Apple itself, though still vested in the premium experience, has begun viewing a shift in costs as not a bad thing. The reason behind this has more to do with the developing world, an area still fairly open to substantial growth opportunities.

Apple’s Stock is at an All Time High

With investors becoming less uncomfortable with Apple’s reliance on the iPhone and the number of companies that actively employ Apple technologies now, the stock is at an all time high. The stock closed Friday May 5 2017 at almost $149 a solid accomplishment.

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