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?
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.
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.
iPhoneÂ
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
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
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
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.
ServicesÂ
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.
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.
