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Monday, October 28, 2013

Where Apple's Money Comes From

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Where Apple's Money Comes From

Everyone knows Apple is the iPhone company.

Last quarter was no exception with just over half of its revenue coming from the iPhone. 

Somewhat surprisingly, though, the iPad is not as big a deal as expected. People were thinking Apple would be the iPhone and iPad company by this time.

The iPad is supposed to be the next major category for Apple, but sales of the iPad were only $562 million above sales of the Mac.

The iPad is doing well, but it's nowhere near as big a business as we might have expected. 

The difference between the iPhone and the iPad is carrier subsidies. The iPhone gets a fat subsidy, the iPad doesn't. Until Apple can figure out how to get a big iPad subsidy, it will remain the iPhone company. 

Here's a complete breakdown of where Apple's revenue comes from:

Read »


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