A few days ago we wrote about Apple, Inc's massive size. How its market cap was bigger than the GDPs of all but seven countries! Now the site Chartr has a cool...chart (what else?!) showing just how Apple rakes in $81 billion of gross profits per quarter ($325 billion annualized)!!
The biggest source of Apple's revenue is, of course, iPhones. No surprise there. They have been the engine of Apple's money machine for over a decade:
All of Apple's products combined generate about $64 billion of sales per quarter with a healthy profit margin of 36%. At that scale, it's just amazing. But what surprised us and really excites investors is the company's Services Revenue (Apple Music, the App Store, Apple Pay, Apple TV, etc.). It's a lot bigger than we excepted--generating more revenue than Mac and iPad sales combined. Subscription revenues tend to be more predictable and stickier than product sales (have you ever cancelled anything once you sign-up?) and so are valued more highly by Wall Street, who apply a bigger multiple to such revenue streams. On top of that gross margins on Apple's services are a whopping 70%, nearly double its products margins...So why doesn't Apple buy a few studios or just Netflix?
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