Apple's fiscal 2024 results reveal the iPhone's overwhelming contribution to the company's revenue, raising questions about its future growth strategy. While the iPhone's success has propelled Apple to a trillion-dollar valuation, declining sales and the lack of a comparable "home run" product pose a challenge.
iPhone sales are estimated to generate over $200 billion annually for Apple, dwarfing all other hardware categories. While Apple's Services division has helped offset potential shortfalls and is projected to reach $100 billion in revenue by 2025, the company remains heavily reliant on the iPhone.
Bloomberg's Mark Gurman argues that no other Apple product will ever reach the iPhone's scale, even the technologically advanced Apple Vision Pro. He suggests that Apple should focus on developing multiple successful product categories rather than searching for a single iPhone replacement:
It’s time to face facts. There may never be another Apple product on the level of the iPhone...For all intents and purposes, Apple is iPhone Inc. and everything else at the company is an iPhone accessory...Apple still needs to find new sources of growth...it needs several new device categories on the level of an iPad, Mac or Apple Watch.
Even with future headsets and smart glasses, Gurman estimates a maximum revenue of $25 billion for that category, reinforcing the iPhone's continued dominance as Apple's primary revenue driver.
