Apple’s revenues generated from the iOS ecosystem will surpass $1 trillion sometime this year, according to one analyst.
By mid-2017, the company is forecast to have sold a whopping 1.2 billion iPhones, while collective sales of all iOS devices will surpass 1.75 billion units.
To put that figure in perspective, note that Microsoft surpassed $1 trillion in all-time cumulative revenue last May. That means iOS devices have almost made as much as Microsoft has on every single one of its products sold to date. Apple celebrated the same milestone in 2015.
The news comes from Horace Dediu just days after the iPhone celebrated its tenth anniversary. Based on current trends, he expects cumulative sales of iOS devices — which includes iPhone, iPad, iPod, Apple Watch, and Apple TV — to exceed 2 billion units by the end of 2018.
It’s thought that by mid-2017, Apple will have generated around $980 billion from hardware sales, plus another $100 billion from related services — such as App Store sales. This does not include the money Apple has paid out to iOS developers, which now exceeds $50 billion.
Photo: Horace Dediu
So, has Apple reached its peak with iOS? Dediu doesn’t think so. Unlike other technology giants that have fallen from grace — like BlackBerry and Nokia — Apple will continue to succeed in the mobile space, he says.
What’s more, Dediu notes consumers are now more likely to abandon cheaper Android devices to get their hands on the iPhone, as opposed to jumping the other way. Apple has previously confirmed it is seeing more people switching to iPhone than ever before.
Dediu believes that as market saturation edges closer, Apple will need to place an even greater focus on capturing Android switchers. He predicts that the iPhone will now go through “a process of continuous improvement,” rather than another “big bang.”
Dediu is also positive about the many Apple products that are sold alongside iOS devices, like Apple Watch and its accessories, Apple Pencil, and AirPods.
“The Apple Watch, the AirPods, Pencil and possible new wearables point toward a future where the iPhone is a hub to a mesh of personal devices. The seamless integration of such devices is what has always set Apple apart,” he says.
