The true extent to which Apple (AAPL) has become an iPhone company can only be appreciated when you look at key statistics about the game-changing device.
From the launch of the first iPhone in June 2007 to mostly ecstatic reviews to now, Apple has sold over 1 billion iPhones. In addition, the iPhone makes up about 44% of the smartphone market in the U.S., where users spend up to 5 hours per day on their mobile devices.
About 60% of Apple's revenue has been coming from iPhone sales since 2011. While iPhone revenue took a slight dip in 2016 for the first time, Jackdaw Research chief analyst Jan Dawson thinks sales are back on track and should gain momentum this fall with the release of the 10th anniversary edition of the iPhone.
An April 2017 survey from Morgan Stanley that showed about 92% of iPhone owners say they are "somewhat likely" or "extremely likely" to upgrade their device in the next year. That survey was based on 1,000 U.S. smartphone users aged 18 and above.
Here are three stunning figures that show how huge Apple's smartphone business has become.
Editors' pick: Originally published June 27.
In July 2016, Apple CEO Tim Cook announced that the company had sold its one billionth iPhone. "We never set out to make the most, but we've always set out to make the best products that make a difference," Cook told employees at the time.
Roughly a year later, Apple has sold an estimated total of 1.2 billion iPhones since its launch, Jackdaw Research chief analyst Jan Dawson said. "Very few products have sold a billion units in total, let alone in the space of just ten years from launch in a brand new market," Dawson said.
The iPhone wasn't an instant success, Dawson noted. Its steep take off didn't start until its second year on the market but once it started, it was truly a phenomenon. "The iPhone is unprecedented in the speed of its rise and the scale it's achieved in such a comparatively short time," he said.
While iPhone shipments dipped for the first time in 2016, the device seems back on track and could see rapid growth this fall with the release of the 10th anniversary edition of the iPhone, according to Dawson.
Since 2007, the iPhone has averaged about $640 in revenue per unit sold, according to Jackdaw Research, which equals a total of $750,000,000,000 in sales over its 10 year lifespan.
iPhone revenue peaked in the 2015 fiscal year at just below $160 billion. That chunk of revenue alone from Apple would put it in the top 20 companies in the world for revenue. Even with the dip in iPhone revenue in 2016, that same slice of the revenue pie would have put it in the top 40 companies in the world by revenue.
Since 2007, the iPhone has made up a little over half of Apple's revenue pie. Since 2011, that has risen even more to about 60% of its revenue pie, leading to criticism about the company's dependence on the iPhone. "The iPhone is absolutely central to Apple as a company and its success since 2007, during which period its total annual revenues grew nearly ten-fold from $24 billion in 2007 to $233 billion in fiscal year 2015," Dawson said.
The iPhone is the definition of a worldwide phenomenon when you consider its market share.
An estimated 715 million iPhones are currently in use across the globe, according to a recent estimate from BMO Capital Markets analyst Tim Long. With a worldwide population of 7.5 billion, means about 10.5% of the world is currently using an iPhone.
In the U.S., the iPhone claims about 44% of smartphone users, followed by Samsung with about 28% of the smartphone user market.
Dawson notes that the smartphone is an important device because it's the only product that could even come close to 100% penetration among mature market populations, in addition to high penetration in emerging markets.
"Apple as a company will forever be different because of what's happened these past ten years with its foray into the smartphone market," Dawson wrote in conclusion.