How Apple Makes Its Money

In 2018, Apple became the first publicly traded U.S. company to reach a market value of $1 trillion

The Biggest Apple in the Money Tree

Apple is worth more than
- 1% of the world's GDP
- The GDP of 183 countries*, including:
  - Turkey: $851 billion
  - The Netherlands: $826 billion
  - Saudi Arabia: $683 billion
- 6 Stock Exchanges*, including::
  - BME Spanish Exchanges: $852 billion
  - Singapore Exchange: $728 billion
  - Saudi Stock Exchange: $530 billion
- Net worth of 3 of the world's richest individuals*, including:
  - Jeff Bezos: $148 billion
  - Bill Gates: $94 billion
  - Warren Buffet: $84 billion

Apple vs. Other Tech

Competition in the billion-dollar club is stiff, with four of the world's top tech companies flirting with a trillion-dollar market cap

Highest Valued Global Tech Companies*as of 02/05/2020 - Market Cap
- Apple: $1.41 trillion
- Microsoft: $1.39 trillion
- Alphabet: $997.2 billion
- Amazon: $1.03 trillion

Apple Dominates The U.S. Tech Market

Smartphones	Tablets	Smartwatches*
Apple: 41% Samsung: 21% LG: 13% Lenovo: 7%	Apple: 38% Samsung: 15% Huawei: 10% Amazon: 7%	Apple: 46% Samsung: 16% FitBit: 10% Others: 28%

Follow The Money

Apple continues to lead the way with its innovative products and services - the financials are clear evidence

The Big Picture*
- Quarterly Profits & Expenses:
  - Gross profits: $20 billion
  - Operating expenses: -$8.6 billion
  - Saudi Arabia: $683 billion
- Quarterly Sales & Revenue:
  - iPhone: $26 billion (48%)
  - Mac: $6 billion (11%)
  - Wearables, home, and accessories: $6 billion ( 10%)
  - iPad: $5 billion (9%)
  - Services: $11 billion (21%)
    
    Services include: Apple Music, Apple Pay, iCloud, Apple News+, Apple Arcade, Apple TV+, and Apple Care+
- Stellar Annual Growth
  
  Apple has seen impressive growth across all of its products and services since initial launch
  - 2002: iMac (redesign) released
    - 3 million sold*
  - 2007: iPhone released
    - 1 million sold
  - 2010: iPad released
    - 7 million sold
  - 2015: Apple Watch released
    - 12 million sold
  - 2018: Unit Sales
    - Mac: 18 million
    - iPhone: 218 million
    - iPad: 44 million
    - Apple Watch: 23 million
  - Apple Services Revenue
    - 2013: $4 billion
    - 2015: $6 billion
    - 2017: $8 billion

Secrets To Apple's Success

How did Apple rise to cult status?

Philosophy Of Steve Jobs*
- Design: "The aesthetic, the quality, has to be carried all the way through."
- Quality: "Quality is more important than quantity. One home run is much better than two doubles."
- Marketing: "Think Different"
- Leadership: "The people who are crazy enough to think they can change the world are the ones who do."
- Innovation: "Innovation distinguishes between a leader and a follower."
Tech With Persistent Value
- Mac Vs. PC
  
  Macs have many benefits PCs don't offer
  - Updates and improvements are released more quickly
  - High-end design and feel
  - Seamless integration between all Apple products
  - Longer life with fewer support requirements
- Macs Are Built To Last
  - Most PCs need to be replaced every 4 years,
    BUT a Mac can last 2x as long
  - A mobile phone can lose more than half its value in just one month
    BUT iPhones hold their value 1.5X better than competitors
- Flourishing Refurbished Market
  Refurbished phone sales grew more than 4X faster than new phone sales in 2017
  - While Apple products can be expensive, their resale value helps offset the cost
    - A 2 year old iPhone sells for 62% of its original price
    - Buying a refurbished device costs 15-40% times less than buying new
    - - And, most consumers are happy with refurbished purchases
      - New computers are 2X as likely to be returned as refurbished Macs
      - 26 states also mandated refurb computers for public schools & gov't offices

Why Apple Continues to Dominate

No other tech company has been able to rule the market like Apple - for three important reasons

#1: The Ecosystem
- Allows for easy integration among products
- Increases the visibility of other Apple products
#2: The Retail Presence
- Allows customers to easily learn about new products
- Provides technical support and repairs damaged tech
#3: Brand Loyalty
- Inspires trust and repeat purchases
- Grows the value of a single customer over a lifetime
#4: Commitment To Refurbish & Recycle
- Ensures devices remain in use for as long as possible through upgrades like
  - Improved battery life
  - Easier screen replacements
- Network of 5,000 Authorized Service Providers
  - Accept older devices for recycling
  - Buy & sell refurbished devices