Part 1/2: With iPad Pro 9.7 and iPhone SE, Apple Gets “9-10% of the Way There”*

Part 1 of 2 covers iPad Pro 9.7.

* (For the year; in annual revenue terms; maybe. More on this later.)

To radically oversimplify what happened during Apple’s March 21 event,

• Apple brought the prior “full-size” iPad “upmarket” with iPad Pro 9.7,

• while bringing an impressive swath of upmarket features to the iPhone 5S “shell” in the form of iPhone SE, while also lowering the “most affordable iPhone” price floor to $399 (US) from the prior $449 that’s been in place since…probably the days of iPhone 3GS becoming Apple’s first “free on 2-year contract” phone (remember those?) circa October 2011, nearly 4.5 years ago.

But what do iPad Pro 9.7 and iPhone SE mean in terms of impacting Apple’s revenues? Do these products even make much of a difference?

After all, Apple’s FQ1 (FQ = Fiscal Quarter) 2016 results and conference call (citing, among other factors, strong global macroeconomic headwinds) have a lot of people – including your humble correspondent – wondering if Apple can grow revenues at all from FY (Fiscal Year) 2015. (Case in point: All those analyst revisions seeing Apple annual revenues down about 2.7% YOY on Yahoo! Finance as of March 29, 2016 – it wasn’t always that way.)

I’ve been thinking about the revenue impact question here and there since the March event rumors started popping up, and while this blog never does treatises, I do have something of an outline, home-game-humble like always, for your “consideration”. So let’s look at how iPad and iPhone SE might, within a year of launch, get Apple around 1/10th of the way to its current, $230B-ish level of annual revenues. Continue reading