Apple's fourth quarter earnings revealed that there are more than 2.2 billion active devices in use spanning the product lineup, which is a main driver to Apple's continued successes in Services.
Propelling these numbers is the iPhone 15 lineup, which has an astounding 99% customer satisfaction rating and holds the top spot in sales for all markets, including four out of five best-selling models in the U.S., four of the top six in the U.K., and all five in Australia.
The iPhone 15 also set an all-time high with upgrades, and the iPhone 15 lineup drove a 6% increase in sales over last year's quarter four. It broke records for sales in Europe and Asia-Pacific Major. According to Tim Cook, "The iPhone 15 is outselling the iPhone 14," which signals the increasing popularity of the iPhone and the growth of active devices.
The 2.2 billion active devices represent an increase of nearly 400 million devices over the last year, which saw an active user base of 1.8 billion devices. This jump in user base is the most significant jump in the last several years, as 2023 only saw a jump of 150 million devices and 150 million in 2022.
To put this into perspective, last year saw 1.8 billion active devices, a bump of 150 million devices. However, the revenue from the iPhone user base represented $76.1 billion, compared with this year's $69.7 billion.
Tim Cook's confidence in the new "high water mark" for install base comes from their confidence in the growing influence of the iPhone in all markets. Indeed, we reported in August that despite a downward trend in smartphone sales across the board, the iPhone represents the only model with growth, contributing to that new high water mark.
Despite the setback with tablets, Apple announced a strong Mac presence, with nearly half of the sales coming from users new to the Mac ecosystem. Likewise, wearables saw a drop in sales versus last year and still face uncertainty with the Ultra 2 and Series 9 models pending an appeal.
Additionally, the iPhone continues its meteoric rise in emerging markets like China and India, with the current lineup contributing to its popularity amongst younger users. In these markets, younger users see the iPhone as a status symbol and a mark of quality over alternatives.