Probably yes, but the iconic brand is shaping a new niche market: one with healthy wallets.
Around the start of 2015, it was reported that Apple’s iPhone 6 sales were responsible for 10% of all U.S. economic growth. Several major outlets reported this in one form or another, including Forbes and The New York Times.
The claim was based on a 1.9 to 2.5% growth rate for the U.S. economy between 2014 and the first quarter of 2015.
Based on pure mathematical estimates of the productive value of all final American products, as well as the revenue generated from iPhone 6 sales, the Apple device was seemingly responsible for 0.25% or 0.3% of the change in the United States’ GDP.
On the surface, this meant iPhone 6 sales were 10 to 15% of conventional economic growth.
GDP is actually a very rough, overly simplistic and problematic estimate of growth. Moreover, revenue from iPhone sales isn’t the same as domestic product from iPhone sales, since domestic product tries to capture value added, not just incoming dollars. Even if the statistic is wrong (it probably is), it is still an interesting way to express how huge Apple sales numbers were.
More recently, Apple took it upon itself to illustrate its effect on the economy and the job market. It claims to have created nearly 2 million jobs across all 50 states, most of which are attributable to the “App Store ecosystem.” The company based its claims on research by Dr. Michael Mandel from the Progressive Policy institute.
In 2017, the top-selling phone in the world was the iPhone 7 from Apple Inc. This small handheld device has a large impact on culture as well as the economy. Apple has recently unveiled their newest models, the iPhone 8 and X. While customers eagerly awaited the official launch of the iPhone X in stores on November 3, orders for the device began being placed October 27 and the demand sent the company’s share price surging.
Apple has recently unveiled their newest models, the iPhone 8 and X. While customers eagerly await the official launch of the iPhone X in stores on November 3, bookings for the device started October 27 and the demand has sent the company’s share price surging.
Meanwhile, iPhone 8 sales have been described as best as ‘anemic’ by media reports.
Total iPhone sales account for a whopping 63% of all Apple revenue. Apple is one of the most valuable companies in the history of the world, yet nearly two-thirds of its revenue is dependent on one product line. iPhone sales are historically resilient, partially because Apple makes it difficult for customers to adapt to alternative operating systems.
Apple’s sourcing model is one of the reasons it generates astronomical profit margins. The company makes very little of its own products.
Instead, components and materials are gathered from around the globe and sometimes even from direct competitors, such as Samsung. This significantly lowers capital expenses for Apple, saves the consumer a bit of money and lets shareholders benefit from the difference.
By unveiling the new iPhone X with a price of $1,000, Apple Inc. is pushing the envelope even further than Samsung Electronics Co., which unveiled the $950 Note 8 phone this year. Rather than trying to attract consumers with cheaper prices, the companies are fighting for customers with expensive price tags.