Apple just posted record-obliterating sales for its iPhone line with 74.5 million devices landing in consumers’ hands during the last three months of 2014. With a stat like that, it’s hard to see where the company can go, right? Surely everyone who wants a new iPhone has got one by now?
Not according to Apple CEO Tim Cook who opened up about iPhone sales a little more in an interview with The Wall Street Journal:
Apple Chief Executive Tim Cook, not surprisingly, argued that the demand is more than temporary. He said that fewer than 15% of recent iPhone buyers upgraded from other iPhones and that the majority switched from smartphones running Google’s Android operating system.
“We certainly believe there are legs to it,” said Mr. Cook of the iPhone sales surge.
Over 85% of iPhone buyers were switchers from other platforms, mainly Android. While Cook noted during the earnings call that the latest iPhone generation had experienced “the highest Android switcher rate in any of the last three launches,” that figure is huge.
Because of this, Tim Cook still sees growth potential in the iPhone, his optimism stemming from the fact that only the majority of iPhone owners have yet to upgrade to the latest iPhone model coupled with consistent switchers from other platforms.
Plus, in my opinion, adding a whole bunch of new iPhone users will potentially create a halo effect around the Apple ecosystem and other Apple products for these people, prompting future purchases, upgrades and investment in Apple’s services and further strengthening Apple’s bottom line.
Can the iPhone maintain its growth? Will the bubble surrounding the new screen sizes burst in the near future? Only time will tell.
Fortunately for Apple, it has an increasingly successful App Store, growing usage of Apple Pay (soon to expand rapidly when it goes international) and new products like Apple Watch and the ultra-portable 12-inch MacBook Air on the horizon to offset slowing iPhone sales (should that be a problem).