Apples post-iPhone plan is working so far
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MacworldHow long can Apple keep relying on the iPhone? Nobody knows, because theres never been another product quite like it. But the plumpest golden goose in history isnt going to keep laying eggs forever.Apple, to its credit, is fully aware of this. With its enthusiastic hyping of the latest cautious iPhone update, the company might occasionally sound faintly deluded: a little like the man in the old joke who falls out of a building and says to the people on each floor as he passes, Everythings fine so far! But Apple is doing its best to find a cushion to land on.In the companys latest financial results, we got an idea of how the cushion hunt is going, and the answer is pretty well. Tim Cook named Q1 2025 as Apples best quarter ever, with record revenue of $124.3 billion despite a small year-on-year dip in the iPhones fortunes. Who needs the iPhone when you have consistent growth in services to make up for any shortfalls?Its certainly gratifying for the company to record its highest-ever quarterly revenue after launching one of its most boring iPhones (which didnt even have its flagship feature at launch). But there are concerns we should discuss before we break out the champagne.One is that regardless of growth in other areas, the iPhone remains Apples most important product by an unhealthy margin. That burgeoning Services division, a portmanteau category combining various tenuously related revenue streams, brought in a total of $26.3 billion, compared to the iPhones $69.1 billion. Wearables, Home, and Accessories brought in a combined $11.7 billion, the iPad just $8.1 billion, and Macs $7.8 billion. In first place, theres the iPhone. In second place is daylight. And only then do we get to the other products.In that light, it becomes a little clearer that simply growing services isnt the straightforward solution to the iPhones eventual decline that it might sound like. This quarter, solid growth in services and iPads was just about enough to make up for a tiny drop for the iPhone. Were still at a point where if the iPhone sneezes, Apple catches a cold. This wasnt a sneeze. It was barely the first AaahhAt some point, the iPhone will suffer a real setback, and we dont yet know how Apple will handle that. Last week, research found that buyers of premium iPhones are becoming less inclined to pay extra for more storage, which could become a headache if it turns into a long-term trend. Apple has historically made a lot of money from iPhone storage upgrades, but with the rise of music streaming and cloud photo storage, there doesnt seem to be quite the same demand.For a company of Apples size, it isnt easy to pivot, and it should be applauded for trying its best to do so. By building a mixed-reality headset and an AI platform Apple has positioned itself for two possible post-smartphone futures, and by growing Apple TV+ and its other subscription services it has shored up revenues in the short to medium term. These are all positive steps. But the pivot hasnt yet been tested. Dip or not, this was another epic quarter from the iPhone, and we dont yet know what will happen when the good times finally come to an end.FoundryWelcome to our weekly Apple Breakfast column, which includes all the Apple news you missed last week in a handy bite-sized roundup. We call it Apple Breakfast because we think it goes great with a Monday morning cup of coffee or tea, but its cool if you want to give it a read during lunch or dinner hours too.Trending: Top storiesDeepSeek is making everyone look silly except Apple, reckons the Macalope.Have you restarted your MacBook this week? You should, pleads Michael Simon.Stephan Wiesend explains why your VPN isnt as secure as you think.Your next iPhone and Mac might cost a whole lot more thanks to political factors.Apples push into the smart home is a decade late but right on time.Apple should smarten up the HomePod mini 2 with these 5 upgrades.This MacBook Pro was too busted for even AppleCare+ to repair!Apple honors Black History Month with color-morphing Apple Watch band.Podcast of the weekApple released an update to iOS, so what should you expect? In the latest episode of the Macworld podcast we take a look at whats in iOS 18.3, plus talk about the latest Apple news.You can catch every episode of the Macworld Podcast onSpotify,Soundcloud, thePodcasts app, orour own site.Reviews cornerMullvad review: A VPN thats all about privacy.Mac Backup Guru review: A utility worth looking into.LaCie Rugged SSD Pro5 review: Blazing back-up performance.The rumor millNew leak gives us a clear look at the iPhone SE 4with a notch. It seems rumors of a Dynamic Island were mistaken.Software updates, bugs, and problemsSLAP and FLOP browser vulnerabilities threaten nearly every Apple device since 2021.Whoops! Apple accidentally breaks watchOS updates on older devices.The latest iPhone update patches a security flaw exploited since 2023.We round up 5 small (but still kinda big) changes coming to your iPhone in iOS 18.3.On which subject, some iPhone users will soon get a secret addition after upgrading to iOS 18.3.The latest iPhone update patches a security flaw exploited since 2023.And with that, were done for this weeks Apple Breakfast. If youd like to get regular roundups, sign up forour newsletters. You can also follow uson Facebook, Threads, or Twitter for discussion of breaking Apple news stories. See you next Monday, and stay Appley.
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