iPhone sales by year:
2012 - 125 million
2013 - 150 million
2014 - 169 million
2015 - 231 million
Is the iPhone reaching market saturation? So far, there doesn’t seem to be much evidence of this. There will be periods of slower growth, but I think it premature to predict growth days are over. Something else to consider; even though it’s still a relatively small part of AAPL, service income is growing rapidly. Expect AAPL to put more emphasis on services going forward.
Another thing I like about an investment in AAPL at today’s price is the cash flow yield which is about 10%. That, along with $160 billion of net cash on the balance sheet could make AAPL a prolific dividend payer for years to come.
Don