Apple's iOS hardware and related services are on track to generate a cumulative profit of $1 trillion sometime in 2017, which will be a major landmark for a consumer product.
The iPhone is estimated to sell around 1.2 billion units by mid-2017, making it one of the most successful products of all time. This forecast comes courtesy analyst Horace Dediu who predicts a promising future for the company.
"As we look toward the second decade of the iPhone, the expectation isn't one of another 'big bang' but a process of continuous improvement," says Dediu.
The iPhone's success could enable the iOS ecosystem and its related services, which is inclusive of the iPod touch, the iPads, the Apple Watch and Apple TV, to reach a combined total sales of 1.75 billion units in 2017.
Forecasts
By mid-2017, the revenue generated from sales of iOS products will apparently touch $980 billion. The analyst also notes that apart from hardware, Apple also generates revenue via iOS services — which include content — and this accounts for over $100 billion presently. Based on this statistic, the iOS ecosystem would have managed to generate more than a whopping $1 trillion in revenue for the company in 2017.
The analyst, however, is unable, to give a time window by when this milestone would be notched up.
The analyst is also of the belief that users are likely to bypass Android in favor of iOS.
"Chances are higher that users will switch from Android to iPhone and not the other way. Again, the reasons have more to do with the ecosystem and quality of users (which are hard to measure) than with the hardware (which is easy to measure.)," he noted.
To illustrate, in July 2016 Apple experienced the highest number of iPhone switchers in its history.
Dediu also mentioned that the market was close to saturating and Apple should have the goal of capturing more people who are switching from the Android platform devices to the iOS ecosystem. Apple has been able to achieve this goal with its Macs.
The analyst further shared that products from Apple such as the AirPods, Apple Watch, Pencil, and some wearables were representative of a future where the company's smartphone was the hub for a string of personal devices.
What sets Apple apart from the competition according to Dediu is that it is able to seamlessly integrate its devices.
