Apple's Success Depends on iOS

Today the tech world will have its eyes sat firmly on San Francisco, where Apple holds its 13th annual Worldwide Developers Conference this week. The conference will be kicked off at 10 a.m. PDT with Tim Cook’s highly anticipated keynote speech. It has been all but confirmed that Apple will present a significantly redesigned version of its mobile operating system iOS during today’s keynote. Additionally, rumours have it that Apple is planning to unveil an ad-supported music streaming service, possibly named iRadio.

After last year’s maps disaster and the management shake-up that followed in autumn, Apple desperately needs today’s presentation and the ensuing roll-outs of iOS 7 and possibly iRadio to be successful. Another flawed launch of a major software update would only add fuel to those who argue that Apple is doomed without Steve Jobs’ seemingly magic touch.

Today’s chart illustrates how important today’s event really is to Apple. iOS is Apple’s most important piece of software, as it powers what are without a question Apple’s most important products. In the past quarter, iPhone and iPad together accounted for 73 percent of Apple’s total revenue. Given the fact that the iPod touch also runs iOS, it is more than likely that iOS devices account for more than three quarters of Apple’s revenue. Considering all this, a major re-design of iOS is a big risk for Apple. It could either mess up Apple’s biggest cash cow, or bring about the positive momentum shift that Apple’s investors have been waiting for.