Apple jumps from fifth to third in 2016 Fortune 500 list
Despite recent setbacks Apple nevertheless climbed from fifth to third place in this year's Fortune 500, ranking major U.S. corporations based on their gross revenues.
Apple managed over $233.7 billion for the 2016 list -- published on Monday -- versus just under $182.8 billion in 2015. The company displaced Chevron, which fell out of the top 10, while remaining behind big-box retailer Walmart and oil giant Exxon Mobil. Totaling over $482.1 billion, Walmart's revenues were nearly twice those of Exxon.
Apple was well ahead of its rivals in the technology industry however, and in fact the only other high-tech firm in the top 10 was AT&T -- sitting in 10th place with about $146.8 billion.
Fortune commented that while Apple is the world's most profitable publicly-traded company, it "finally appeared to hit a wall" in 2015, as iPad sales continued to slide and its latest iPhones "barely outsold" the iPhone 6 and 6 Plus. The business magazine also pointed to "modest" Apple Watch sales, and problems in Asia towards the end of the year.
The company's immediate hopes are said to lay with next-generation iPhones and a focus on its relatively untapped Indian market. In the longer term, though, Fortune pointed to Project Titan, which it described as an "effort to leapfrog the automobile market with an electric masterpiece." Apple typically isn't expected to ship a car until at least 2019 or 2020.
Apple managed over $233.7 billion for the 2016 list -- published on Monday -- versus just under $182.8 billion in 2015. The company displaced Chevron, which fell out of the top 10, while remaining behind big-box retailer Walmart and oil giant Exxon Mobil. Totaling over $482.1 billion, Walmart's revenues were nearly twice those of Exxon.
Apple was well ahead of its rivals in the technology industry however, and in fact the only other high-tech firm in the top 10 was AT&T -- sitting in 10th place with about $146.8 billion.
Fortune commented that while Apple is the world's most profitable publicly-traded company, it "finally appeared to hit a wall" in 2015, as iPad sales continued to slide and its latest iPhones "barely outsold" the iPhone 6 and 6 Plus. The business magazine also pointed to "modest" Apple Watch sales, and problems in Asia towards the end of the year.
The company's immediate hopes are said to lay with next-generation iPhones and a focus on its relatively untapped Indian market. In the longer term, though, Fortune pointed to Project Titan, which it described as an "effort to leapfrog the automobile market with an electric masterpiece." Apple typically isn't expected to ship a car until at least 2019 or 2020.
Comments
A new $1 billion drug in the biotech/Pharma industry is considered a blockbuster. The goal of every company in those sectors. Yet Apple Watch, out the gate with first year revenue in the $5-7 billion range is considered lackluster. And the iPhone SE, which will likely increase revenue by several billion dollars after cannibalization is accounted for, is questioned as a desperate move.
And, mark my words, Apple will not build and sell cars to end consumers. The company is looking to be part of the car-as-a-service revolution with its greater transportation efficiencies and recurring revenue model. Apple will construct depots in and near population centers where cars can be serviced, recharged, cleaned/prepped, and unleash swarms of cars to serve each geographic area, starting with cities it sees as ideal for such a service and expanding as it learns. At first the cars can be human piloted, but the model doesn't need to change (same depots, same swarms) once the cars become fully autonomous and the local laws support that option. So obvious.
But it is not "gross" revenues as AI says: it is net revenues (i.e., what is recognized as 'revenue' for financial reporting purposes, under GAAP). That's a huge difference.
Tim should be fired!
In 1969, NASA "just barely" flew men safely to the moon and back, delivering a "modest" step forward for mankind.
What is galling to me as an investor is the craven use of AAPL as a profit stopgap for all the rest of the market. These firms use the stock as a reliable income generator by having the analysts in their pocket seed some stories positive or negative to influence the price direction. It is pretty easy I would guess, and a huge amount of that goes on. Why wouldn't they? Apple is a solid as hell company with a great following. I don't guess they think anything they write could actually hurt the company, only the stock price.
I remember back in 2009 maybe earlier, Cramer was on his show and scarcely ever mentioned the stock, except to say this "I think there is going to be a heavy lid on that price going forward". Wow. The heavy lid indeed. There are now so many games being played with the stock that I despair it will ever be priced like the success that it is.
Another thing while I'm ranting. The P/E is at ~11 or so at $99 a share. Wasn't it about the same a couple years ago? Did the company not grow at all? Yet Apple made nearly 30% more profit each year. I know there are different ways pricing is figured and I know it takes a lot to move the needle on this much profit, but really! 30% more profit is 30% more profit whatever the starting number was. When the stock hit $134 the p/e was ~18. If it went up to that again they would probably say it was at 25 or something. Yeah I know, do the math. Something ain't right.
Wall Street is USING AAPL as their main squeeze while they fart around, basically. In 2015 after back to back blowout numbers the analysts had something else planned, so they spun all that bs we saw. Then they arbitrarily decided the iPhone 7 was going to be 'the one' that sets the stock up for a rise. Probably, especially since they say so. Except, that now there are so many different gameplans and so many players, it's just a mess and now some say it will be iPhone 8. Which leads to a lousy stock price for what seems like forever. Anyone who did not buy early like me has sure been slapped around.
What at a strong company Apple is anyway, to survive all this bad news. Is it possible for analysts to ruin its reputation?
So an increase of $50.9 billion over last year. That's a lot of money. And yet, we still hear how they're "d00m3d!" and struggling against the ethereal entity "Android".
Hell, who knows? Maybe next year all their revenue will dry up and they'll disappear out of the 500 never to be seen again. Somehow I doubt it. Maybe next year Walmart will finally be exposed as the dark, satanic force they truly are, and they'll be thwarted in their plans to bring on the apocalypse by a band of plucky heroes, allowing Apple to rise to 2nd behind Exxon. I know which I hope will happen, but I can't honestly say which is more likely.
More significantly, Apple was far-and-away #1 in profits, earning more than the next two companies (JPMorgan Chase & Berkshire Hathaway) combined.
I can see why everyone wants to sell their stock in this lacklustre company.