Apple Makes $500 Million From iPad Covers Alone

It’s no secret that Apple makes a ton of money. The Cupertino, California-based maker of iPhones, iPads and iPods has so much money in fact that it’s faced with the unconventional problem of having to think how to utilize their huge stockpile of cash. Back in February, we talked about Apple’s $97.6 billion in cash, an amount which can blanket the state of California more than twice if it were in $1 bills.

The iPhone, iPad and iPod are surely money makers but apparently, the company also makes a lot of money on seemingly small unimportant things. Take for example the smart cover Apple has released for the iPad. According to a research firm, Apple makes $500 million in revenue each year just from selling iPad covers.

Talking at the Open Mobile Summit in London, Arete Research Managing Director Richard Kramer revealed that his firm believes Apple makes half a billion dollars a year just from selling these magnetic, folding and shape-shifting iPad covers.

He said: “The majority of iPad users own one of these flexible accessories, which brings Apple in a $500m fortune each quarter.”

“Apple is one of the first manufacturers to move its focus away from mobile hardware, as seen with the iPad Smart Cover,” he added, explaining and maybe predicting that Apple stands to make more and more selling accessories as time passes.

It’s no wonder then that Apple can amass a pile of money which can literally be stacked as high as a mountain.

Another noteworthy thing Kramer mentioned in his speech was that he thinks consumer electronics, particularly smartphones and tablets, will begin to be differentiated next year. He said that “There’s a huge problem with differentiation for mobile device vendors, and it’s a growing concern. To us smartphones may all look different, but to the average consumer they all look like ‘fat black slabs’. The end of this ‘black slab’ trend looks set to [start] in 2013.”

What do you think about that last point Kramer made? Do you agree? Will it be beneficial? Tell us your opinions in the comments below.

Source: The Inquirer

Images 1 & 2 from Gabriele B. & LJR.MIKE on Flickr (CC)

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