Apple’s products revenue in past 25 years & how are Vision Pro's sales expected to do.

Table of content

1. Objective

2. Observations

3. Takeaways & estimations

Disclaimer: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Readers are solely responsible for their own investment decisions.

---

Apple's product sales along the years (cut-off on Sept 2021).

Objective:

• Since the announcement of Apple's Vision Pro, I would like to estimate what are the expected sales it will bring for the company in the coming years.

• As a start, it may be useful to look at past data to see how revolutionary products like iPod & iPhone did.

Notes:

1. Datasets are obtained from ChatGPT (cut-off is on Sept 2021), hence 2021 sales figs are incomplete.

2. Figures may not be completely accurate, but its useful for a start.

3. Figures are in USD.

---

Interesting observations

In merely 3 years after iPhone's release,

• It took over Mac as top revenue generating product

• It generated more sales than iPods would ever bring to the company.

• iPod's highest sales figure was $9billion in 2007

iPod sales dropped every year after iPhone is released in 2007.

• Clear sign that iPhone cannibalised iPod's sales.

iPhone was designed to include iPod's native music player functions.

Mac's sales however was still able to grow at 10%CAGR (from 2007 since iPhone launched, until 2021)

• Mac's sales were not cannibalised by iPhones, rather it appears to be strengthened by it instead.

• since users with both Macs & iPhones achieve better user experience in the Apple ecosystem.

Macs & iPhones are designed to work better together.

iPhone sales CAGR were 68% for 14 yrs from 2007 till 2021.

Apple stock price inc by 27% CAGR for 14 yrs from 2008 until 2022.

Steve Jobs grew the companies' revenue enormously when he came back as CEO in 1997-2011,

and revenue growth fell 1 year after.

Takeaways & estimations

• Based on some quick calculations done here, taking into consideration factors like total market size, and assumed adoption rates here are some estimations on how Vision Pro will affect Apple's sales.

• (Note): these assumptions are purely speculative at this point and for information purposes only, figures will likely be refined again later with more real-life data.

1. Vision Pro will likely cannibalise into iPad's sales.

2. Macs sales on the other hand, are expected to maintain or possibly grow in the coming few years.

3. iPhones will likely maintain as the main revenue generator for the company for many years.

4. Its possible for Apple's MR product lines to sustain revenue growth of up to 60% for 10 years.