Apple’s Q1 numbers were released recently, and they show the company’s first year-over-year drop in iPhone sales. Apple earned slightly more than $10B profit on slightly more than $50B in sales. These are considered disappointing numbers, although they sound pretty solid to me.
I haven’t dug into Apple’s reports or any market analysis, so what I’m describing here is purely anecdotal. I am an Apple aficionado. I use exclusively Apple products for everything relating to technology. I own an iPhone, an iPad mini, and an Apple TV. I don’t own a Mac because I don’t use a computer or laptop anymore. The iPhone/iPad combo gets it all done for me.
Even though I use Apple products exclusively, Apple hasn’t made much money off me in quite some time. I pay them $14.99 a month for an Apple music family subscription, for which they make very little profit. I pay them an additional $24.99 annually for an iTunes Match subscription. I buy an occasional book from iBooks. I haven’t bought a new iPhone in nearly two years, and bought my current iPad mini nearly two-and-a-half years ago. I bought my Apple TV five years ago. I have no immediate plans to replace any of those devices because they still perform every function I need them to perform. Apple products are not cheap, and I’m not going to upgrade without need. All software updates, both in the operating system and the apps I use, are free and frequent, and as long as the hardware holds out, I really have no need of spending money anytime soon for new products.
In a nutshell, even though I use Apple products exclusively, their products are so durable that I don’t need to go out and buy every upgrade that comes out. Apple doesn’t make a great deal of money off me, and I suspect there are lot of Apple users who fall under the same category. So I don’t get too bothered when my favorite technology company only earns a $10B profit in a quarter.