mobile App marketing

3 Ways Apple Makes Money From The iPhone

Apple’s last quarterly revenue hit $62.9 billion, which was an increase of 20%.

Apple makes money

In its quarterly financial briefings, Apple has confirmed the iPhone sales figures are falling. While the company is still making a huge amount of money from sales of the device (it makes $31 billion of revenue), it is 17% lower than the same period in the year before.

Fewer people are buying iPhones in places like China, where local smartphone manufacturers compete with better specs at lower prices. A lack of headline features has also prevented iPhone sales figures from growing.

However, iPhone sales aren’t the only way that Apple makes money from the iPhone, meaning that it is still making money from its smartphone despite fewer sales being made.

1. Subscriptions

Apple has now sold two billion iOS devices (iPhones, iPod Touches, and iPads), with most of these being iPhones. While each of these iOS owners may not buy a new iOS device annually, Apple can still make money from their use of an iOS device by getting them to subscribe to its services.

Apple now operates several service packages such as its music streaming service Apple Music. It plans to launch more subscriptions in 2019. One which is available now is the Apple News Plus news subscription service which allows people to pay a monthly fee to access premium publications such as Vanity Fair, People Magazine, and Esquire.

With these services, Apple can make hundreds of dollars more from an iOS user, which may be potentially more than that user has paid for their iOS device or more than Apple will have gotten from the sale (they may have bought the device second-hand)

2. App Revenues

Since 2008, iOS app developers have made more $120 billion from the App Store. They make this money through the sale of premium apps as well as microtransactions within free to pay apps.

The popularity of the App Store has made being a mobile app developer a potentially very lucrative career.

However, Apple also makes money from the sale of these apps and their microtransactions. Apple takes 30% of the purchase price of an app sale or microtransaction made through the App Store.

So of those billions that app developers have made with their apps, Apple has made billions of dollars too. Apple may not sell many more iPhones or iOS devices, but if people keep using apps on these systems, then Apple will still make money.

3. Selling Accessories

Compared to Android accessories, official Apple accessories are incredibly expensive. Official Apple accessories are also more expensive than third-party versions. While Apple accessories are better quality than those made by third-parties, the quality isn’t all that you’re paying for.

Something that causes the price of an iPhone accessory to be higher is the branded packaging. The price of a real charger for your iPhone is much lower when you purchase a charger with fuss-free packaging that doesn’t have Apple branding.

While you will still be getting a genuine iPhone charger that is the same quality as one in an Apple-branded box, you’ll be saving some money. Apple also uses this strategy with accessories such as its AirPods headphones and its cases.

While Apple is known for selling the iPhone, the device is valuable to the company for many reasons and that’s why investors keep investing in the company, although iPhone sales are lower.

Arpit <span> Business Development Head </span>
Written By
Arpit Business Development Head

He is responsible for marketing programs, brand management, and corporate sponsorships. He thrives on challenges, particularly those that expand the company’s reach. Next to work, Shadow, his dog, immensely contributes to his happiness.

Want To Hire The Best Service Provider?
MobileAppDaily will help you explore the best service providers depending on your vision, budget, project requirements and industry. Get in touch and create a list of best-suited companies for your needs.
mobile App marketing

Proven Tips To Improve Mobile App Revenue

4 min read  

Mobile phones and tablets are widely used over the world. Nobody will be surprised hearing that today mobile devices are a preferred method not only for leisure activities like reading books, watching movies, shows, playing games and shopping but also for business.Though the desktop share amount

mobile App marketing

How Online Food Delivery Apps Make Money?

4 min read  

Online food delivery, despite the increasing competition, seems promising. In fact, the food delivery industry has grown so popular that it’s estimated to reach an incredible $200 billion by 2025. The inception of food delivery apps has made it easier for customers to place orders online witho

mobile App marketing

Mobile Apps Branding: Important Things to Remember

4 min read  

Apps act as a brand extension and representation of your business. After creating a fantastic app, you can’t expect it to thrive automatically in market space. You may need branding agency services to access your audience through mobile apps.The current generation is tech-savvy, and most o

mobile App marketing

How To Use Quora For Promoting Your Mobile Application

4 min read  

Quora is an important online platform which enables people to communicate with each other and solve the important issues in the form of questions and answers. People contribute unique insights and its community members organize it in the form of opinions.According to some of the best app marketi

MAD Originals
MAD Originals

Cut to the chase content that’s credible, insightful & actionable.

Get the latest mashup of the App Industry Exclusively Inboxed

  • PRODUCTS
  • SERVICES
  • BOTH
Join our expansive network, build connections and expand your brand presence.