How Much Is Apple Worth In 2020 And How Do They Make Their Money?

However you slice it, Apple is one of the biggest corporations in the world. The company is also one of the most popular brands in the world thanks to the amazing range of consumer electronic products, software, and other services that they have developed and sold since the company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple is considered one of the Big Four tech companies in the world alongside Facebook, Google, and Amazon. The spectacular growth that the company has consistently enjoyed has led Apple’s net worth to go through the roof.

Only a few businesses in the world can even dream of being in control of the amount of wealth that Apple commands. The company is beloved for the quality and sleek design of its hardware products, especially their iPhones, iPads, and Macbooks. They are considered the leading developers of consumer electronic goods in the market. Whether it’s in terms of revenue or size, Apple is at the forefront of the global corporation battle. So what is Apple’s net worth and how have they managed to make so much money? Let’s take a look.

Brief History Of Apple’s Formation

Before we delve into how this tech giant makes its money, let us take a quick look at its humble beginning. Apple Inc. was founded by Steve Jobs, Ronald Wayne, and Steve Wozniak on April 1, 1976. Since then, the company has evolved exponentially recording significant growth and expansions in many areas. Top companies like Braeburn Capital, Beats Electronics, Claris, Beddit, Anobit, Claris and Apple Energy, LLC are all subsidiaries of Apple Inc.

Apple Inc. was formerly known as Apple Computer Company in the first two years of its inception. The company which first started out as a computer hardware company has diversified into computer software, electronics, cloud computing, financial technology, digital distribution, fabless silicon design, semiconductors, and artificial intelligence.

How Much Is Apple Worth In 2020?

It may interest you to know that Apple was practically on the verge of declaring bankruptcy in the late nineties. However, the iPhone maker made a huge comeback by surmounting its challenges and becoming the first publicly traded company in the world to reach a market cap of $1 trillion in 2018. Although it dropped below the $1 trillion valuation in 2019, it bounced back in March 2020 with a net worth tagged at an estimated $1.3 trillion. This estimate places the technological company amongst the most valuable brands in the world.

The prestigious tech brand operates over 500 retail stores spread across the globe and also has an employee base of about 137,000 staff. In 2019, its operating income was pegged at $63.930 billion and its total assets at around $338.516 billion. Analysts and stockbrokers have also predicted that the market capitalization of the company will rise to $2 trillion before the end of the year. They also predict that the stock price will rise to $380.00 before the end of the year.

The jaw-dropping nature of Apple’s net worth is not surprising considering that it has managed to capture most of the profits and market shares in the smartphone and personal computer industry.

READ   The 20 Highest Paid Actresses In The World (Updated 2020)

How Do They Make Their Money?

The popular computer hardware company primarily makes profits from marketing various consumer electronics, system software and providing online services to its wide range of customers spread across the globe. Some of its widely known electronic products include the iPod, iPhone, iPad, Apple Watch, HomePod, and Apple TV among others.

iPhone 

Apple's New Products (iPhone 11, 11 Pro, and 11 Pro Max)
iPhone 11, 11 Pro, and 11 Pro Max: Image Source

The iPhone is Apple’s bestseller as it is considered one of the best 5 smartphones in the world. Despite the growing competition in the industry, as well as the changes in the economy, Apple still manages to command the largest market share with this brand. As a result, the iPhone has had a significantly positive influence on Apple’s net worth.

Mac

Macbook
Macbook: Image Source

This personal computer brand is a major player in the success of Apple’s business, and it continues to record an increase in revenue growth. Analyses show that more than 5.3 million Mackintosh PCs were sold in 2019 and this figure is expected to increase by the end of 2020 with a wide margin.

iPad

iPad
iPad: Image Source

Apple’s version of the tablet is one of the most desirable and sought after tablet on the market. This accounts for about a quarter of the total annual tablet sales in the world. The success of the iPad has also contributed tangibly to Apple’s total worth.

Home Items & Accessories

Apple Accessories - Apple's Net Worth
Apple Accessories: Image Source

This includes product lines such as Apple watches, AirPods, HomePods, and other similar goods. At present, it is the company’s fastest-growing stream of revenue thanks to the popularity of the accessories and home items.

Services 

Apple Services
Apple Services: Image Source

Aside from hardware products, a good portion of Apple’s net worth comes from the sale of software and other intangible products such as cloud storage, warranties, and music subscriptions. Its software products cut across a range of operating systems and system applications. Its various operating systems include the tvOS, macOS, iPadOS, iOS, and watchOS. The globally acclaimed tech company boasts of an array of software applications which include iTunes, Safari, Shazam, iWork, iLife, Xcode, Logic Pro, and Final Cut Pro.

Notable among the online services provided by the technological giant include iOS App Store, iTunes Store, Apple Arcade, Apple Music, Apple Pay, Apple Card, iCloud, iMessage, Apple TV+, Apple News+ and Mac App Store. To access any of these online services, it is imperative that you have the applications installed on your Apple device or you sign up through its various web platforms.

See Also: How Much Is Facebook Worth In 2019 And How Do They Make Their Money?

Is Apple The Richest Company In The World?

It’s tough to make a call on the richest company in the world because the title is constantly drifting between several companies; but at the moment, Walmart holds that title.

However, when speaking specifically of tech companies, Apple is considered the richest tech company in the world in terms of revenue, assets and total net worth. Other close contenders include Samsung, Microsoft, Foxconn and Alphabet, Google’s parent company. Over the last few years, these businesses have typically had only a few billion dollars separating them.

Samuel Daniel
Samuel Daniel
Samuel is a researcher and content creator who is deeply passionate about writing and singing. His expertise is in finance, celebrity profiles and net worth, creative writing, fictional character development, as well as article writing, revolving around exciting names in the world of entertainment, sports and business. Previously, he has worked as Sports and Foreign news correspondent, and voice-over expert with NTA as well as a reporter and deputy news editor for orientation broadcast studio. He holds a B.Sc in Mass Communications

Recommended

Does Pharrell Williams Have Wife or Kids and What is His Net Worth?

With at least 13 Grammy Awards under his belt, Pharrell Williams is an established American record producer, singer, and businessman. He began by producing...

What Happened to Mel Gibson’s First Marriage? Meet His Kids and Current Girlfriend

Being married and staying married in Hollywood can be a herculean task. When you add the baggage of struggle with alcoholism and bad press...

A Close Look At Daniel Tosh’s Net Worth, His Wife And Gay Rumors

Daniel Tosh is an American stand up comedian, actor, writer, executive producer, and television host. He is popular for his controversial style of dark...

Making Sense Of Angelina Jolie And Brad Pitt’s Divorce

No one likes divorce, but, sadly, it happens for several different reasons. Best couples are no different; we've seen marriages between lovebirds crash when...

14 Corrupt Billionaires Who Have Served Jail Time

One would like to think that being a billionaire would at least solve the problem of greed, instead, the reverse is the case for...

10 Instagram Fitness Models Who Are Raking In Millions Online

Instagram was launched only about a decade ago, but today, with its more than half a billion users, it has since joined the big...

Who Are Charles Barkley’s Wife and Kids and What is His Net Worth?

Charles Barkley is famous for being one of the most phenomenal American basketball players of all time. As an NBA player, he was nicknamed...

More From Justrichest

Inside Jay Leno’s Massive Car Collection, Net Worth & Family Life

Jay Leno is without doubt, one of the finest and most mature entertainers America has ever produced. A multiple award-winning stand-up comedian, writer, TV...

12 Biggest and Most Expensive Homes of Extravagant Footballers In 2020

The huge and decent earnings of footballers grant them the audacity to exemplify lavish spending and also enable them to sustain every aspect of...

Jessica Nigri Net Worth: How Much Money Does The Cosplayer Make?

Jessica Nigri is a well-known American cosplayer. For the benefit of those who don’t know, Cosplay is derived from the words costume and play....

20 Strongest and Most Powerful Currencies in The World (Updated 2020)

According to World Atlas, there are 180 currencies in circulation that are recognized by the United Nations across the wide world and these are...

Featured Today

Little Known Facts About Kristen Welker’s Career, Parents and Husband

Those who can tell a thing or two about Kristen Welker will quickly point out that she is a media personality known for her...

What Is Wrong With Barron Trump, Is He Really Autistic? Where Is He Now?

Autism is prevalent and can affect people of all ethnic, racial and socioeconomic groups. The disorder, which limits a person's ability to relate and...

The Untold Truth of Bryan Chatfield Sanders Sarah Huckabee Sanders’ Husband

Everyone is familiar with Sarah Huckabee Sanders but not so with her husband Bryan Chatfield Sanders. As a media and political consultant, Sanders has worked...

Who is Zack Snyder’s Daughter Autumn Snyder and Why Did She Commit Suicide?

It could be hard to understand why someone would ever take their own life; leaving their family and loved ones to suffer in a...

Who Is CNN Dana Bash, What Is Her Salary & Why Did She Divorce John King?

The award-winning Dana Bash is an amazing American journalist, television anchor, and chief political correspondent for CNN. Best known for her unparallel contributions since...

Related Stories