Apple's multi-prong strategy, hatched in the tough times from 2001 to 2003, is now paying off handsomely. In those difficult days when revenues stayed stubbornly flat, and margins hovered around zero, Apple re-invented its core Mac range of computers, and launched the iPod and iTunes to become a major player in the Consumer Devices and Services space. In 2007,45% of its revenues came from this consumer business. Although iPhone sales only accounted for 0.5% of revenues in the same period, it's launch marks a continuation of this successful strategy.
Uday Phadke, 31 March 2008