While analyst opinions can sway on whether or not Apple has a ‘successful’ quarter, there is one thing that is very clear: Apple is making a lot of money. On their earnings call on July 22nd, Apple announced revenue of $37.43 billion and $7.7 billion profit. Even though some are concerned that iPad sales growth is slowing, Apple is still continuing to build a larger and larger user base and, in the process, bringing in more and more money into their coffers.
It can be easy to dismiss just how large Apple’s various businesses are. Just reading that Apple sold 35.2 million iPhones last quarter may seem insignificant at a glance. Yet, how large is Apple’s iPhone business when compared to other well known brands, based on revenue? Jordan Weissman at Slate did a wonderful job of showing us.
Apple’s iPhone is a significant part of their business. Those 35.2 million iPhone sales amount to $19.75 billion in sales. By comparison, that is the entire revenue of Amazon. It’s also as large as Google and eBay’s revenue combined. Google and Apple may be in a head-to-head race with their software, but their financial numbers aren’t even close.
Even more interesting is seeing the revenue that Apple is bringing in with the iPhone, which only turned 7 years old this summer, when compared with older brands like McDonald’s and Coca-Cola. While tech certainly costs more than fast food, it still shows the financial impact of the iPhone and the boon it has been for Apple.
While similar to the iPhone, the iPad is a newer (and relatively young) product category for Apple. Yet, even with a more modest revenue of $5.9 billion, the iPad business is larger than several other household names in tech. In fact, the combined revenues of Facebook, Twitter, Yahoo, LinkedIn, Groupon, and Tesla would still not equal the revenue that iPad sales brought in for Apple last quarter. Indeed, for Apple, the iPad is a magical device.
An integral part of Apple’s ecosystem is iTunes, which itself brought in $4.5 billion last quarter. Apple’s hardware sales amounted to $1.3 billion, still a large sum that rivals the revenue of many companies, beating out even Yahoo with its $1.08 billion of quarterly revenue. It’s no surprise that these two areas are still bringing in a lot of revenue as Apple’s offerings are selling an ecosystem, of which iTunes is still a very vital part.
Interestingly, the smallest segment is Apple’s iPod line at $442 million. Once the poster child for Apple, the iPod has become a small competitor when compared with its larger mobile cousins. Even so, Apple continues to enhance and sell various iPods, most notably the iPod touch, Apple’s “iPhone without the phone”.
Even with numbers such as these, some people still feel the need to proclaim doom on Apple. With strong sales like we’re seeing above, how is Apple doomed? Many companies can only dream of having the revenue and profit that Apple is able to announce each quarter. And with continued income comes the continued financing of research and development. And with Apple’s R&D spending higher than ever before, we can only anticipate what Apple may introduce to us in the near future.
What do you think of Apple’s quarterly statistics? How well do you think Apple is doing? Let us know below!