It’s clear that the bulk of Apple’s income originates from the iPhone. Throughout the company’s most recent quarter, for example, 53 % of its $ 37.4 billion in quarterly earnings originated from its iconic mobile phone.
For as high as folks prefer to speak concerning Apple having actually come to a head, the firm has a propensity for publishing out boatloads of cash quarter after quarter. While companies like Amazon.com could generate almost $ 20 billion in quarterly revenue and still lose money, Apple’s margins and total revenues continue to be remarkably healthy and balanced.
Doubters have actually long demanded Apple lower rates to increase market share, but Apple has stayed the course, recognizing that market share for the sake of market share alone is a fool’s duty. Although the iPhone doesn’t make up most mobile phone sales total, it could generate chilly tough money like nothing else.
Offering some more context about simply exactly how vital and profitable the iPhone is to Apple, Jordan Weissmann of Slate created this handy chart which contrasts just how the iPhone, as its own business, compares to a variety of blue chip companies. Revenue sensible, we view that Apple’s iPhone company makes as much money as McDonalds and Coca-Cola incorporated.
Even more impressive is that Apple’s margins over the last 10 years have continued to be fairly and extremely constant.
Quite stable long-lasting gross margins. Painful contrast to remainder of the market. pic.twitter.com/XMNu7sM9xI
– Benedict Evans (@ BenedictEvans) July 22, 2014
Check out|Permalink|Email this|Remarks