Back in 2007, when Apple introduced the iPhone, Steve Jobs described it as a groundbreaking product in a category that he believed needed reinventing. Nearly two decades and 42 models later, the iPhone has become one of the most popular phones in the world. According to research from Demand Sage, Apple has sold over 2.3 billion units of the iPhone and has more than 1.5 billion active users. The original iPhone was launched in June 2007 and was exclusively available through AT&T for $499. According to Gene Munster from Deepwater Asset, investors were initially hopeful about the iPhone’s potential impact. However, the initial sales data from AT&T was disappointing, leading to skepticism among investors. Despite this, Apple managed to sell 1.4 million iPhones in 2007, with 80% of the sales occurring in Q4. In the same year, Nokia sold 7.4 million mobile phones in Q4 alone, and was widely perceived as dominant and unbeatable. The investing community saw the mobile phone market as particularly challenging for Apple to penetrate. However, Apple’s fortunes began to change in 2008 with the launch of the App Store. This move not only catalyzed the growth of modern tech companies like Uber, but also positioned Apple ahead of its competitors. Following the launch of the App Store, Apple experienced a surge in iPhone unit sales. The company reached a significant milestone in 2011, selling more than 50 million units with the iPhone 4s. By 2015, Apple was selling over 200 million iPhone units annually. According to Marc Weber from the Computer History Museum, the iPhone set a new standard that most phones have followed since its release. The introduction of the App Store had a profound impact, with Android adopting a similar model with the Play Store. A decade after the iPhone’s debut, Apple became the first publicly traded U.S. company to attain a $1 trillion market cap, solidifying its position as one of the most profitable companies globally. Apple recently overtook Samsung, a major competitor, as the world’s leading smartphone vendor. As per data from the International Data Corp., Apple now holds slightly over 20% of the global market share, a position previously held by Samsung since 2010. Following a period of declining market share globally, especially from 2008 to 2015, Apple’s success has been attributed to its mastery in building an ecosystem that sets it apart from competitors. Apple has also ventured into machine learning and AI for the iPhone, although companies such as Microsoft, Google, and OpenAI have been more openly embracing these technologies. According to Munster, AI is expected to play a critical role in iPhones, particularly enhancing various functionalities such as organizing photos and emails. However, there is still unrealized potential for Apple to fully capitalize on AI in its iPhone products. Watch the video to delve deeper into the impact of the iPhone on Apple.
