Every fall, Apple unveils a new iPhone model, often leading to critical responses that highlight a perceived lack of innovation. Critics frequently argue that the new model offers minimal differences compared to its predecessor. In the subsequent months, reports often indicate declining sales and production cuts, suggesting that Apple may be struggling to innovate within the smartphone market.
Despite this narrative, a thorough evaluation reveals the continued strength of the iPhone as a product line. While individual models may experience varying levels of success, the overall performance of the iPhone remains impressive.
In its third-quarter earnings report for 2024, Apple reported robust iPhone sales, with revenue reaching 46.22 billion USD—nearly 2.5 billion USD higher than the same quarter in the previous year, thereby setting a new record. This growth is noteworthy considering ongoing speculation that the “iPhone has peaked.” Since the initial launch of the iPhone 17 years ago, Apple has consistently achieved record revenue in this sector, despite intense competition from Android devices.
Currently, Apple no longer publishes quarterly sales figures, making total revenue a key metric for assessing the iPhone’s vitality. Two scenarios could explain the positive revenue trend: either sales are genuinely increasing, or consumers are gravitating towards higher-end models, such as the iPhone Pro. Regardless, these results indicate that the iPhone continues to be a critical contributor to Apple’s overall revenue. For context, revenue generated from iPhones in Q3 of 2020 was 26.4 billion USD, and this figure has since surged by over 50% in just four years.
Looking ahead, it remains uncertain whether recent advancements in Apple Intelligence will spur a new wave of iPhone upgrades. Users are increasingly holding onto their devices longer, often upgrading after 3 to 6 years. This trend suggests that incremental improvements in newer models may not be sufficient to motivate regular upgrades among current users. Instead, many are transitioning from older devices, viewing a new iPhone as a significant enhancement in performance and features.