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