Apple on track to hit $1 trillion in total revenue from iOS by the middle of this year

Last year, some analysts made the unlikely claim that Alphabet or Amazon might beat Apple to be the first trillion-dollar company. Asymco’s Horace Dediu, however, is out today with a new report predicting that Apple will cross the $1 trillion mark this year in terms of revenue generated by iOS, pushing it closer to a $1 trillion market cap.

First and foremast, Dediu says that the iPhone will have sold at least 1.2 billion units in its first 10 years, making it the “most successful product of all-time” and spawning other categories like iPad, iPod touch, Apple TV, and Apple Watch.

In its first 10 years, the iPhone will have sold at least 1.2 billion units, making it the most successful product of all time. The iPhone also enabled the iOS empire which includes the iPod touch, the iPad, the Apple Watch and Apple TV whose combined total unit sales will reach 1.75 billion units over 10 years. This total is likely to top 2 billion units by the end of 2018.

Dediu explains that, if current predictions hold true, revenue from iOS product sales will hit $980 billion around the middle of this year. Hardware, however, isn’t the only revenue stream to hit Apple’s bank account from iOS. In addition to hardware sales, Apple has also brought in more than $100 billion in terms of sales from its services sector, including things like apps, subscriptions, and media.  Thus, Apple will cross the $1 trillion mark this year.

Another notable statistic from Dediu’s research is that there are an estimated 17.5 trillion iPhone sessions per year, with 48 billion per day. This is assuming that there are 600 million active devices, each unlocked an average of 80 times per day.

Dediu also notes of some Apple qualities that make the company stand the test of time against every “iPhone killer” that comes along. Dediu explains that it’s the Apple ecosystem that keeps people locked in, as well as the many capabilities of the iPhone and its reputation as being the premium smartphone choice.

There is a temptation to think that such a business is fragile and will be disrupted. Challengers appear daily and the number of iPhone “killers” is not measurable.

One can cite the billion users of Nokia phones which defected. One can cite the loyalty of BlackBerry users that evaporated. One can even cite the juggernaut of Windows and how it became impotent. One can cite the vast number of Android devices offered at low prices.

It’s important to note that this doesn’t mean Apple’s market capitalization will hit $1 trillion during this year. Investors have predicted that Apple needs one more “home run” product in order for that to happen. While some suggested that product could be Apple’s Project Titan car, that may not be the case considering certain doubts about the initiative as a whole.

Nevertheless, crossing $1 trillion mark in terms of revenue from iOS is a huge accomplishment for Apple and joins a list of other notable figures. Just last year, for instance, Apple passed the 1 billion iPhones milestone, also noting that it has 1 billion total active devices, including iOS devices, Mac, and Apple TV.

The achievement comes in the same year as the 10th anniversary of the iPhone and the company will also most certainly use the $1 trillion statistic to its advantage in marketing and keynotes.