There’s always a time when a technology stops being the hot new thing and becomes just something most people have in their house. For example, the television. For awhile, HD TVs were big business, and now most people have them. Sure, they can make them bigger or give them better, higher definition, but at a certain point a TV is just a thing you watch The Bachelor on. There’s not a must-have new TV on the market. For Apple, there’s a very real fear that the company is struggling with: Has Apple reached ‘peak iPhone’?
Here’s the issue. The first quarter of 2016 showed a huge decline in iPhone sales from 2015’s first quarter, which for Apple isn’t necessarily a good thing. After all, there’s an enormous user base, and most of them rush out to upgrade phones whenever they can to get the latest and greatest. What that means is they might do great business when the next iPhone comes out, but for the moment, they have a huge business that depends on selling iPhones to people, with the iPhone accounting for two-thirds of $234 billion dollars in revenues.
That’s a mighty big bite of the apple if that number starts going down. Still, I think a lot of companies would kill to be in Apple’s position. If they need a revenue boost, they just need to push out a slight upgrade on the iPhone, or some sort of new color scheme.