What Else Can Apple Sell to iPhone Customers?

As sales of core products – iPhones, iPads, and Mac computers - have slowed down, Apple has put more emphasis on the services sector. That makes sense. Services should have even higher margins than Apple’s enviable hardware margins, and the opportunity is huge. Free-standing new products, like HomePod and Vision Pro (virtual reality headset), have yet to drive significant revenue. So, we want to look at the seemingly low hanging fruit in the Apple marketplace - hardware accessories. These are primarily add-ons for iPhone owners, and they can add up. 

Last week we looked at two highest priced and most closely integrated Apple accessories, Apple Watch and Airpods. This week we consider the more mundane accessories, and we look at all sources, not just Apple. Cases and screen protectors have the highest attachment rates, and good old wired headsets are now the lowest..

Almost 70% of iPhone owners report having a phone case (Chart 1). Screen protectors are almost as popular, with just over 60% of iPhone owners.