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Exactly a decade and a half has passed since the charismatic co-founder of Apple, Inc. (NASDAQ:AAPL), Steve Jobsannounced the company’s flagship product, the iPhone, at the 2007 main event.
Announcing it on January 9, 2007, Jobs called it a revolutionary invention that combines three products, namely a mobile phone, a wide-screen iPod with touch controls, and an innovative desktop email Internet communications device. web browsing, search and maps.
The iPhone through the years
Since its introduction, the iPhone has gone through several iterations and transformations. The original iPhone was much smaller with a 3.5-inch LCD screen, a simple home button, a thick chassis, huge bezels, a Samsung processor, and a 2-megapixel camera. The first-generation iPhone, released in the US on June 29, 2007, was priced at $499 for the 4GB model and $599 for the 8GB model.
The product soon added 3G capability, as the iPhone 3G was announced a year later, in June 2008. Twice as fast and cheaper, the iPhone 3GS was released in 2009. Apple followed with the iPhone 4 in June 2010, iPhone 4S in 2011, and iPhone 5 in 2012.
In 2013, the company released the iPhone 5S/5C, which was equipped with the A7 64-bit SoC, Touch ID, and a new motion data processor. The iPhone 6 and iPhone 6 Plus were announced in 2014, and they came with NFC support through Apple Pay. This was followed by the release of the iPhone 6S/iPhone 6S Plus in 2015.
Apple introduced the iPhone 7/iPhone 7 Plus in 2016. The company announced three new iPhones the following year. iPhone 8/iPhone 8 Plus/iPhone X were all released in 2017. iPhone XR, XS, XS Max were announced in 2018 and the next iteration called iPhone 11 was released in 2019, with three variants: iPhone 11, iPhone 11 Pro and iPhone Pro Max. In 2020, the iPhone 12, iPhone 12 mini, iPhone 12 Pro, and iPhone Pro Max were announced. As for the iPhone 13, with the same variants as the previous year, it was presented in 2021.
How Apple changed along with the iPhone
Although Apple has developed an entire ecosystem of products of hardware and has built a strong services business, there’s no denying the fact that the iPhone has been instrumental to the company’s strong performance.
Before the launch of the iPhone, Apple’s revenue in fiscal 2006 was $19.32 billion, and the tech giant made a net profit of about $2 billion. Since then, the company’s revenue and net profit have increased, reaching $365.82 billion and $94.68 billion, respectively, in the 2021 fiscal year ended September 25, 2021. Approximately 18.7% of the 2021 revenue came from services with the rest coming from products that also included iPads, Macs, wearable devices, the Home app and accessories.
In the first full year after the launch of the iPhone, that is, in fiscal year 2008, the mobile phone, along with related products and services, brought the company 419 million dollars in revenue and represented 5.6% of its sales. Total revenue. This has increased over the years, and in 2021, iPhone revenue was $38.87 billion or about 47% of total revenue.
Apple shares have also seen strong gains since the product’s launch. The share price was $3.09 split-adjusted on the day the first iPhone was announced, rising to $3.66 when it launched on June 26, 2007. Apple is currently at $172.17, which indicates an increase of approximately 5,500%.
It’s the momentum of the iPhone that briefly pushed Apple past $3 trillion in market capitalization last week.
Although the iPhone’s share of total revenue is declining, the success of the rest of its hardware and services depends on the iconic product. Apple’s installed base as of January 2021 was over 1 billion. With 5G upgrades in full swing, more growth remains for Apple’s iPhones, at least in the short term.
Photo: Courtesy of: Sean MacEntee on Flickr