How Does Apple Make So Much Money?
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Transcript of How Does Apple Make So Much Money?
$171 billion: How Did They Do It?
Apple made $171 billion in revenue last fiscal year. There are 7 billion people on Earth.So Apple made the equivalent of $24.50 per person.Here’s how they did it!
Did you pay Apple $24.50 last year?
No. 1: iPhones
• Apple’s biggest revenue driver and fastest growing product over the last two years was its iPhone.
• Over half – 53.4% -- of Apple’s revenue was from its iPhone lineup.
• Revenue from the iPhone was up 16% year over year and nearly 100% over two.
Revenue: $92.3 billion
No. 2: iPads
• Apple’s second-largest revenue driver was the iPad.
• The iPad contributed 18.7% to Apple’s top line.
• But growth’s been slowing – it grew only 3% year over year versus 61% year-over-year growth in the previous fiscal year.
Revenue: $32 billion
No. 3: Macs
• Rounding out the top three is Apple’s Mac line.
• Revenue has been flat over the past two years; growth’s been hard to come by.
• However, this is impressive in a down PC market.
Revenue: $21.5 billion
No. 4: iTunes, Software, and Services
• With a CAGR of 31% over the last two years, this is Apple’s second-best performing segment.
• In addition to adding to Apple’s top line, this segment adds value by improving the user experience for other Apple products.
Revenue: $16.1 billion
No. 5: Accessories
• Apple’s accessories segment will get a boost from the recent Beats acquisition.
• Look for growth to pick up from its two-year average of 13% per year.
• It hasn’t kept up with Apple’s total revenue growth over that period, but it’s still better than…
Revenue: $5.7 billion
No. 6: iPod
• Once a high-flyer, iPod sales have cratered.
• On the heels of a 25% drop in fiscal 2012, the iPod dropped 21% this year.
• Many analysts have pointed to cannibalization from the higher-margin iPhone.
Revenue: $4.4 billion
Leaked: Apple’s Next Smart Device
(Warning, It May Shock You)