How Important is the iPhone to Apple's Success?

If the countless rumors are correct, Apple will unveil three new iPhone models at its big fall event later today. While new iPhones most likely won’t be the only thing on Apple’s agenda today, they are by far the most important aspect of today’s event. As the following chart illustrates, the iPhone has become absolutely vital to Apple's success. After the first iPhone’s launch in 2007, it took less than three years for it to become Apple's biggest product in terms of revenue. For the past four year's the iPhone's share of Apple's total revenue has hovered between 55 and 70 percent of total sales, depending on seasonal effects. The launch of the iPhone X in time for the holiday season last year propelled the iPhone’s revenue contribution to a record level of 70 percent for the holiday quarter, a record that Apple surely wouldn't mind breaking this year.

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