The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Apple: iPhone Accounts for 39% of Business

Apple: iPhone Accounts for 39% of Business

by , 7:05 PM EDT, October 21st, 2008

Apple's iPhone sales have grown so much that they accounted for 39 percent of the company's business. Revenue from iPhone sales has grown to the point that the company decided that while it will continue to account for sales based on a subscription model, it will also report non-GAAP financial figures.

iPhone sales are accounting for about US$4.6 of the company's total business. The company's reported quarterly revenue based on the subscription model for iPhone sales came in at US$7.9 billion, but without subscription accounting hit $11.8 billion -- some 48 percent higher.

"As you can see, the non-GAAP financial results are truly stunning," said company CEO Steve Jobs.

The company managed to outsell Research In Motion's popular BlackBerry lineup. iPhone sales for the fourth quarter hit 6.9 million units, while RIM's BlackBerry clocked in at 6.1 million. Apple also sold enough iPhones to move into the third place slot for the quarter based on revenue.

"Apple outsold RIM last quarter, and this is a big milestone for us. RIM is a good company that makes good products," Mr. Jobs said. "But even more remarkable is this: Measured by revenues, Apple has become the world's third largest mobile phone supplier. I know this sounds crazy, but it's true. As measured in revs, not units, Apple has become the third largest mobile phone supplier."

Apple plans to continue using its subscription model to account for iPhone revenue, which means that customers will still be able to get iPhone system software updates for free. The company, however, will also report non-GAAP figures so investors will have a better idea what kind of impact the iPhone is having on quarterly numbers.

Apple is currently trading after hours at $102.62, up 11.13 (12.17%).

If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Recent TMO Headlines - Updated December 2nd

Fri, 3:25 PM
New Teaser Video for Apple TV+ Gives Audiences a Peak at 2023 Programming
Fri, 2:28 PM
The Retro 67 Charger from Shargeek Rocks Retro Looks with Modern Functionality
Fri, 1:32 PM
Travelin' Tim Goes to Arizona, iPhone Production Woes and More
Fri, 1:20 PM
Season Two of 'Slow Horses' Now Streaming: How to Watch the Espionage Comedy on Apple TV+
Fri, 12:59 PM
Apple Releases New Betas for iPhone, iPad, Mac and More
Fri, 12:32 PM
Gurman: 'realityOS' for Apple's New Mixed-Reality Headset Changes Name to 'xrOS'
Fri, 12:12 PM
Apple's Emergency SOS Via Satellite Feature for iPhone 14 Saves A Stranded Man in Alaska
Fri, 11:59 AM
Coinbase Claims Apple 'Blocked Its Last' Wallet iOS App Release Following New Policy on NFTs
Fri, 3:00 AM
But Just Wait 14 Months - TMO Daily Observations 2022-12-02
Thu, 4:51 PM
Opening an Apple Card This Holiday Season Can Net 5% Back on Apple Purchases
Thu, 3:13 PM
Concerns in China and More On the Terrible Craziness That Is Twitter These Days
Thu, 2:56 PM
Google Doodle Allows Users to Create Their Own Game to Celebrate Life of Developer Jerry Lawson
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Daily Observations
  • TMO on Twitter!