Slice it any way you want, Apple is one of the mightiest corporations in the world. They are also one of the most popular 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 iPhone, iPad, and Macbook range. 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.
How Much Is Apple Worth In 2019?
In 2018, Apple became the first company in history to cross the $1 trillion valuation mark. Their market capitalization was able to reach this incredulous value because of the increase they saw in share price, sales, and profits. However, this $1 trillion value has since dropped due to concerns around the company’s shifting strategy. As of 2019, Apple’s net worth has been sitting around $940 billion.
Here’s a fun fact to give a little perspective to Apple’s net worth: if it was a country, Apple would be the 27th richest nation in the world. They could buy the top 50 most valuable sports teams in the world and still have about $800 billion left to spend. Apple is richer than the 11 wealthiest people in the world, all of whom share a combined net worth of $831 billion, which is still over $100 billion short of Apple’s astronomical net worth.
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 share in the smartphone and personal computer industry.
How Do They Make Their Money?
At the end of the fiscal year in 2018, Apple declared sales figures of $265.6 billion and a net income of $59.5 billion, one of the highest figures declared by any company. Although Apple is best known for its smartphone, the iPhone isn’t the only way the company derives its enormous net value. Apple has several successful streams of revenue, however, the following are the company’s top five most profitable businesses and the percentage they contributed to Apple’s $84.3 billion revenue for the first quarter of 2019.
iPhone – 61.7%
The iPhone is Apple’s bestseller. They’re considered one of the best 5 smartphones in the world. Despite the growing competition in this industry as well as the changes in the economy, Apple still manages to command the largest market share.
Mac – 8.8%
This personal computer brand is an important part of Apple’s business, and it continues to record increased revenue growth.
iPad – 8%
Apple’s version of the tablet computer is one of the most desirable on the market and accounts for about a quarter of the total annual tablet sales in the world.
Wearables, Home and Accessories – 8.7 %
This includes product lines such as Apple watches, AirPods, HomePods, and other such goods. At present, it is the company’s fastest-growing stream of revenue.
Services – 12.9%
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. The company is also launching its own movie streaming platform, Apple TV, video game subscriptions, and payment card, amongst other products.
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 back and forth between several companies. At the moment, the title is keenly contested by Apple, Amazon, Microsoft, and Alphabet, Google’s parent company. Over the last few years, these businesses have only had a few billion dollars separating them. As of 2018, Apple was winning the race thanks to its market capitalization of $1 trillion.