Apple's business strategy focuses on more than just selling beautifully crafted devices. The company's success with the Mac relied on the operating system, the iPod success depended on iTunes, and the iPhone success stems from the Apple Store. Looking ahead, Apple derives most of its revenue from iPhone sales, but services like the App Store and Apple Music are becoming increasingly important revenue streams as iPhone unit sales plateau.

1. Apple Business Strategy
FourWeekMBA.com
When looking at the Apple Business Model, it is easy to assume that it is solely a product company, which sells devices that are beautifully
crafted. However, there would have been no success for the Mac without its OS operating system. There would not have been iPod success
without iTunes. And no success for iPhones without the Apple Store. What's next for Apple's success?
201620172018
0 40 80 120 160 200 240 280
215.64
229.23
265.6
-20
0
20
40
60
80
100
120
140
160
180
200
220
240
2016 2017 2018
211.88 216.75 217.72
iPhone 62.76%
iPad 7.08%
Mac 9.60%
Services 14.00%
Other Products 6.56%
NetSalesinbilliondollars
iPhones units sold in millions
Revenue Streams
Americas
112
Europe
62.4
Greater China
51.9
Japan
21.7
Rest of
Asia
Pacific
17.4
Sales by geography
-10
0
10
20
30
40
50
60
70
2016 2017 2018
63% 62% 63%
iPhones as % of net sales
Source: Apple 10K 2018
0
1
2
3
4
5
6
7
8
9
10
2016 2017 2018
10%
8%
7%
iPad as % of net sales
0
1
2
3
4
5
6
7
8
9
10
11
2016 2017 2018
11% 11%
10%
Mac as % of net sales
$17.4B
AirPods
AppleTV
AppleW
atch
Beatsproducts
HomePod
iPodtouch
Apple-brandedandthird-partyaccessories
Other products
sales in 2018
What's next