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Take away iPhone and Apple is worth at best 1/10 of its current market cap. The company isn't as diversified as you think.

by paxys 2y ago

JimDabell 2y ago
AirPods alone generate five times as much revenue as Spotify, and about two-thirds as much as Netflix. Apple is also the world’s biggest watchmaker. When some of Apple’s side-quests are industry giants in their own right, I think it’s fair to say that Apple are diversified.
- littlestymaar 2y ago
  That's true but at the same time these are mostly I phones accessories. Should the iPhone fall out of fashion (which I don't expect but it's a thought experiment) then the sales of these products will decline as well, so is that really diversification?
  - JimDabell 2y ago
    Should the iPhone fall out of fashion, Apple will make the Apple Watch compatible with whatever displaces it. AirPods are already usable as normal Bluetooth wireless earphones.
- aurareturn 2y ago
  Airpods are only popular because of the iPhone.
  - HDThoreaun 2y ago
    Ive compared airpods to competitors and the airpods were clearly better imo. Sure they became popular because of the iPhone but theyre also just a competitive product.
- yread 2y ago
  Ever tried using apple watch without an iPhone?
  - bilbo0s 2y ago
    Well that's a knife that cuts 3 ways though. What I mean is, think about the addressable market comprised of the people who want to use the watch without iPhone. I think sometimes we underestimate the number of people out there who do not have an iPhone.
- paxys 2y ago
  The vast, vast majority of Airpods are sold as an accessory to the iPhone. In fact they stopped including earbuds in the box for this exact reason.
lm28469 2y ago
It's "only" about 50% of their revenues, which isn't too bad.
- xethos 2y ago
  For the iPhone itself, sure. Now account for the drop in companion devices (Airpods and AppleWatch work best with an iPhone, and it's pretty apparent when you aren't using one) Then take a gander at Cloud services that no longer push themselves via the red badge on every handset, for the photos people are taking on competing platforms (Google Photos is the obvious danger, but even Dropbox through Onedrive pose risks to total revenue) Should probably account for App Store revenue as well, considering why most Apple customers buy apps, and then how many buy Macintosh just to develop for the massive iPhone market None of these are exclusively tied to the iPhone, but none look nearly as nice without the iPhone being a (and possibly even the) market leader
aspenmayer 2y ago
> Apple warns investors future products may never be as profitable as iPhone https://www.ft.com/content/e30eb646-a7ad-496e-8fa4-ff1b4445e853 https://www.ft.com/content/e30eb646-a7ad-496e-8fa4-ff1b4445e... https://archive.is/RamqY https://archive.is/RamqY https://news.ycombinator.com/item?id=42053841 https://news.ycombinator.com/item?id=42053841
r00fus 2y ago
Consumer sales vs. B2B sales are different beasts. Absent some titanic shift (e.g. Apple is banned from sales), consumer sales are more durable. If AI doesn't pan out, those H100s are not going to find a lot of sales anywhere and Nvidia could be back to a gaming GPU company.

Take away iPhone and Apple is worth at best 1/10 of its current market cap. The company isn't as diversified as you think.

by paxys 2y ago

Take away iPhone and Apple is worth at best 1/10 of its current market cap. The company isn't as diversified as you think.

JimDabell 2y ago

AirPods alone generate five times as much revenue as Spotify, and about two-thirds as much as Netflix. Apple is also the world’s biggest watchmaker. When some of Apple’s side-quests are industry giants in their own right, I think it’s fair to say that Apple are diversified.

littlestymaar 2y ago
That's true but at the same time these are mostly I phones accessories. Should the iPhone fall out of fashion (which I don't expect but it's a thought experiment) then the sales of these products will decline as well, so is that really diversification?
- JimDabell 2y ago
  Should the iPhone fall out of fashion, Apple will make the Apple Watch compatible with whatever displaces it. AirPods are already usable as normal Bluetooth wireless earphones.
aurareturn 2y ago
Airpods are only popular because of the iPhone.
- HDThoreaun 2y ago
  Ive compared airpods to competitors and the airpods were clearly better imo. Sure they became popular because of the iPhone but theyre also just a competitive product.
yread 2y ago
Ever tried using apple watch without an iPhone?
- bilbo0s 2y ago
  Well that's a knife that cuts 3 ways though. What I mean is, think about the addressable market comprised of the people who want to use the watch without iPhone. I think sometimes we underestimate the number of people out there who do not have an iPhone.
paxys 2y ago
The vast, vast majority of Airpods are sold as an accessory to the iPhone. In fact they stopped including earbuds in the box for this exact reason.

lm28469 2y ago

It's "only" about 50% of their revenues, which isn't too bad.

xethos 2y ago
For the iPhone itself, sure. Now account for the drop in companion devices (Airpods and AppleWatch work best with an iPhone, and it's pretty apparent when you aren't using one) Then take a gander at Cloud services that no longer push themselves via the red badge on every handset, for the photos people are taking on competing platforms (Google Photos is the obvious danger, but even Dropbox through Onedrive pose risks to total revenue) Should probably account for App Store revenue as well, considering why most Apple customers buy apps, and then how many buy Macintosh just to develop for the massive iPhone market None of these are exclusively tied to the iPhone, but none look nearly as nice without the iPhone being a (and possibly even the) market leader

aspenmayer 2y ago

> Apple warns investors future products may never be as profitable as iPhone https://www.ft.com/content/e30eb646-a7ad-496e-8fa4-ff1b4445e853 https://www.ft.com/content/e30eb646-a7ad-496e-8fa4-ff1b4445e... https://archive.is/RamqY https://archive.is/RamqY https://news.ycombinator.com/item?id=42053841 https://news.ycombinator.com/item?id=42053841

r00fus 2y ago

Consumer sales vs. B2B sales are different beasts. Absent some titanic shift (e.g. Apple is banned from sales), consumer sales are more durable. If AI doesn't pan out, those H100s are not going to find a lot of sales anywhere and Nvidia could be back to a gaming GPU company.