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Apple was founded in 1976. Later, it became the first American company whose capitalization exceeded $ 1 trillion. Since then, the company has become a little cheaper and more expensive again, but has always remained one of the most successful public companies in the world.
The Investopedia portal analyzed Apple's business and identified the five most areas for the company from Cupertino. That is what brings her the greatest profit.
How's Apple doing now?
The company is actively developing and today it is far from being only a manufacturer of gadgets. According to analysts, the value of the “service” part of Apple’s business is about $ 500 billion, while the hardware business is estimated to be “only” $ 400 billion. In fiscal 2018, Apple’s sales totaled $ 265.6 billion and net profit $ 59.5 billion.
In the first quarter of 2019, iPhone accounted for 61.7% of all sales. At the same time, the growing segment of services accounted for 12.9% of sales. The segment of wearable gadgets, home products and accessories brought 8.7% of revenue, another 8% came from the iPad.
Consider the most profitable segments of Apple's business in more detail.
iPhone
A key product of the company, which is in the top 5 smartphones in the world continuously since 2009. At the same time, smartphone sales are declining. According to Gartner, the year-on-year drop in the third quarter of 2019 amounted to 10%. Among the reasons for the decline are increased competition in the world market, lengthening the life cycle of devices, and a slowdown in demand in China.
Nevertheless, it is still the iPhone that brings Apple over 50% of the profits.
Services
The revenue of the services division in the second quarter of 2019 brought Apple $ 11.45 billion. In fiscal 2018, this figure amounted to $ 37.2 billion. Among the notable facts is almost double the gross margin of this direction: it leaves 62.8%, whereas in the case of iPhone this parameter is at 34.3%.
This division includes everything from iCloud to Apple Music and even AppleCare warranties. Since 2010, revenue for the service business has increased five-fold, and Tim Cook’s CEO has repeatedly stated his intention to develop this business segment. Only recently, the line of Apple services has replenished with its own streaming Apple TV, financial product Apple Card, a subscription service for video games, etc.
Mac
The personal computer segment, built around the Mac, brought $ 25.5 billion in 2018. The share of revenue in this particular area is decreasing along with the general slowdown in the PC market worldwide. Mac sales totaled $ 6.99 billion in the fourth quarter of 2019.
iPad
When Apple launched the iPad in 2010, the device quickly became the first commercially successful tablet computer. In the first three months after the launch, 3 million iPads were sold. By 2015, iPad accounted for up to 25% of Apple's global revenue. In fiscal 2018, the company sold tablets for $ 18.8 billion. In the fourth quarter of 2019, iPad sales totaled $ 4.66 billion.
Wearable Devices, Home Products, and Accessories
The segment called Apple's Wearables, Home and Accessories, which the company previously called simply Other Products, includes AirPods, AppleWatch, and HomePods. In fiscal 2018, this direction brought Apple $ 17.4 billion. In the fourth quarter of 2019, the figure was at $ 6.52 billion - such a good result was largely achieved by the launch of the new version of AirPods 2 wireless headphones
You can buy Apple stock from Russia without having to open a separate brokerage account with foreign brokers. Shares of Cupertino, as well as securities of other American corporations, are traded on the foreign securities market of the St. Petersburg Exchange . Today, more than 500 liquid shares of leading companies in all sectors of the world economy, including all shares of the S&P 500 index, have been admitted to trading.
To make transactions with Apple stocks, you need a brokerage account - you can open it online .
Useful links on the topic of investment and stock trading:
- Open a brokerage account online
- Test account with virtual money
- Software for trading on the exchange: trading terminal, mobile applications
- Structural Products
- Model Portfolios
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