or Connect
AppleInsider › Forums › General › General Discussion › Apple leapfrogs titans of industry to land No. 6 spot on Fortune 500
New Posts  All Forums:Forum Nav:

Apple leapfrogs titans of industry to land No. 6 spot on Fortune 500

post #1 of 34
Thread Starter 
Fortune magazine on Monday released its annual Fortune 500 list of America's top companies, as ranked by revenue, with Apple jumping 11 places from last year to pass giants in the automotive, healthcare and banking industries.

Fortune 500
Source: Fortune


As reported by Fortune's Philip Elmer-DeWitt, Apple's revenue during the last fiscal year was good enough to best heavyweights in a number of strong U.S. industries traditionally at the top of the list, granting the Cupertino company entry into the exclusive top-ten club for the first time ever.

Moving from 17th place to 6th, Apple streaked past J.P. Morgan, Bank of America, General Electric, Ford, General Motors, AT&T, Verizon, Hewlett-Packard, Fannie Mae and Valero. Apple is now the highest ranked tech company on the 500, with second place HP slipping down to the No. 15 spot.

Fortune's blurb about Apple:

Apple is bigger than ever -- the company cracked the Fortune 10 this year. But it's a high-pressure job, being king of the hill. At Apple's press event this past October, it maintained more than disrupted with its software upgrades and iPad mini announcement. Also, CEO Tim Cook had to apologize a lot in the past year -- once in September for the failure of Apple's maps app, and then to Chinese consumers this April for slow repair services -- this in a market that Cook said this past January would be Apple's largest. Still, when every executive wants to invent the iPod of ___, Apple remains an innovation icon.


In order to take the top position, currently held by Wal-Mart, Apple would have to triple its yearly revenue which stood at $156.5 billion last year. The company posted profits of $41.7 billion, however, a massive number bested only by Exxon Mobil's $44.9 billion. Of the top five firms, three were petrochemical companies.

Elmer-DeWitt notes that the rankings reflect Apple's booming fiscal 2012, at the end of which AAPL stock prices dropped precipitously. During Apple's quarterly conference call for the second quarter of 2013, the company announced reduced margins led to its first year-over-year decline in profits in a decade, but still managed to beat Wall Street estimates on revenues of $43.6 billion.
post #2 of 34

Wal-mart's costs must be enormous! They sure take in enough revenue...

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #3 of 34
It's over, Apple is doomed.

(I'm never going to get tired of saying that either)
"Picasso had a saying, 'Good artists copy, great artists steal.' And we've always been shameless about stealing great ideas."
Reply
"Picasso had a saying, 'Good artists copy, great artists steal.' And we've always been shameless about stealing great ideas."
Reply
post #4 of 34
This time next year they'll likely be 3rd or 4th for revenue and have profits close to equaling the profits of slot one and two of this chart combined… but Apple is doomed¡
Edited by SolipsismX - 5/6/13 at 7:46pm

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #5 of 34

Apple Doom

post #6 of 34
Clearly Apple needs to up its game. Information and knowledge have to be worth more than petrochemicals.
post #7 of 34
Every time something like this happens, John Dvorak grows another toe.
post #8 of 34
Quote:
Originally Posted by Suddenly Newton View Post

Wal-mart's costs must be enormous! They sure take in enough revenue...

All store-based. That's why Apple shouldn't build too many stores. Wal-mart has 8,500 stores:

http://www.journalnow.com/business/article_5ad539d5-d616-55ba-ab27-aeaf45b06074.html

Their gross margins are lower too.
post #9 of 34
Wal-Mart had some very public stories of difficulties with their in-store stocking operations, and they claimed that they had significant revenue impacts due to their target customers being severely affected by the economic downturn and subsequent lowering and delay of social welfare payments.

That they were able to weather those storms and still end up on top of this list is remarkable.

I'll only note that the 2, 3, and 4 spots are all oil companies. While they are indeed independent firms, it's a measure of the power of the sector that if they were a combined firm, they would absolutely crush any other firm on the list.

Berkshire Hathaway is a holding company, for all practical purposes. None of their individually held companies would make it to the top 10 if they were ranked in isolation.

So Apple has done quite a bang-up job making it to the 6 spot. Congratulations.
post #10 of 34
It beats me why profits are not the deciding factor in the ranking, surely turn over is far less important.
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
Reply
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
Reply
post #11 of 34
Quote:
Originally Posted by Marvin View Post


All store-based. That's why Apple shouldn't build too many stores. Wal-mart has 8,500 stores:

http://www.journalnow.com/business/article_5ad539d5-d616-55ba-ab27-aeaf45b06074.html

Their gross margins are lower too.

Yes, indeed. Retailing is one of the lowest margin businesses there is.
post #12 of 34
Quote:
Originally Posted by digitalclips View Post

It beats me why profits are not the deciding factor in the ranking, surely turn over is far less important.

Or even better, market cap (which is just the capitalized value of expected profits).
post #13 of 34
Quote:
Originally Posted by anantksundaram View Post

Yes, indeed. Retailing is one of the lowest margin businesses there is.

I thought that honour goes to things with Android installed.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #14 of 34
Originally Posted by SolipsismX View Post
I thought that honour goes to things with Android installed.

 

 

Hi-yo!

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #15 of 34

Quote:

Originally Posted by Tallest Skil View Post

 

 

Hi-yo!

 

One of the funniest pics I've seen in awhile.

 

Now trying to figure out who the original was (I'm guessing maybe Buddy Rich).

Author of The Fuel Injection Bible

Reply

Author of The Fuel Injection Bible

Reply
post #16 of 34
Originally Posted by EricTheHalfBee View Post
Now trying to figure out who the original was (I'm guessing maybe Buddy Rich).

 

I went for "suited drummer" when I first found it, and I guess it's Bill Sargent, whoever that is.

 

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #17 of 34
Quote:
Originally Posted by Just_Me View Post

Apple Doom

MORE abbreviation!

BC - Before Christ
AD - Apple Doomed
post #18 of 34
Originally Posted by GTR View Post
MORE abbreviation!

BC - Before Christ
AD - Apple Doomed

 

We're roughly in AD 20 at this point, huh? Or is it AD 20 AD? 

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #19 of 34

In the future, when our kids get out of their Apple beds in the morning, eat breakfast from their Apple Food Preparers, stay at home and study using their 'Definitely The Absolutely Newest' iPads (seeing as schools have, for the most part, closed), log onto their Apple Communication Devices to do their job (while speaking Mandarin), then drive across to visit grandma and grandma (Yeah, you!) in their Apple cars, they're going to say:

 

"You're shitting me! Apple only used to make archaic, unintelligent personal computers and players that could only play one form of media? That's not hella-cool.".

 

Disclaimer: Please note that your version of the future may differ from the one depicted in this post, especially those of you that are trolls who will actually suffer an incredibly long bout of depression then end up committing suicide.

post #20 of 34
Quote:
Originally Posted by Tallest Skil View Post

We're roughly in AD 20 at this point, huh? Or is it AD 20 AD? 

I believe it begins in 1985, when Steve left Apple.

Doom, it appears, is an exceedingly lengthy process.
post #21 of 34
Originally Posted by GTR View Post
Doom, it appears, is an exceedingly lengthy process.

 

That reads like a Douglas Adams line.


Originally Posted by GTR View Post
In the future, when our kids get out of their Apple beds in the morning, eat breakfast from their Apple Food Preparers, stay at home and study using their 'Definitely The Absolutely Newest' iPads (seeing as schools have, for the most part, closed), log onto their Apple Communication Devices to do their job (while speaking Mandarin), then drive across to visit grandma and grandma (Yeah, you!) in their Apple cars, they're going to say:

 

"You're shitting me! Apple only used to make archaic, unintelligent personal computers and players that could only play one form of media? That's not hella-cool.".

 

That's basically the polar opposite of It's A Wonderful OS! I post that too often.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #22 of 34
Congratulations Steve. Wish you were here to see it.

Please update the AppleInsider app to function in landscape mode.

Reply

Please update the AppleInsider app to function in landscape mode.

Reply
post #23 of 34
Quote:
Originally Posted by Tallest Skil View Post

That reads like a Douglas Adams line.

 

It does a bit, doesn't it?

 

That's okay.

 

Don't Panic.

post #24 of 34
Man... Exxon is a beast

2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

Reply

2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

Reply
post #25 of 34
Quote:
Originally Posted by Suddenly Newton View Post

Wal-mart's costs must be enormous! They sure take in enough revenue...

Think thinner margins than Apple. Their costs are closer to their revenue because of the price competitive nature of commodity goods being mass marketed.

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
Reply
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
Reply
post #26 of 34
Quote:
Originally Posted by SolipsismX View Post

This time next year they'll likely be 3rd or 4th for revenue and have profits close to equaling the profits of slot one and two of this chart combined… but Apple is doomed¡

 

... AND Apple's stock will be suffering anyway. 1wink.gif

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
Reply
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
Reply
post #27 of 34
Well Apple creates products and if you count only such companies (not oil companies) Apple would come on top.

Which of us is the fisherman and which the trout?

Reply

Which of us is the fisherman and which the trout?

Reply
post #28 of 34

This is bad news. Very, very bad. For me, that is, not for Apple. I want everyone involved in the decision to shelf the 17" MBP to suffer horribly, to rue the day they put their convenience ahead of mine, and to crawl across broken glass to plead for another chance to make what *I* want. That seems somewhat less likely in light of this news.

 

Poo.

post #29 of 34
Quote:
Originally Posted by digitalclips View Post

It beats me why profits are not the deciding factor in the ranking, surely turn over is far less important.

 

Revenue is a better measure of how much money they are moving around, thus, their effect on the (world-wide) economy as a whole.

post #30 of 34
Quote:
Originally Posted by anonymouse View Post

Revenue is a better measure of how much money they are moving around, thus, their effect on the (world-wide) economy as a whole.
But absolutely not a better measure of success and isn't that what a ranking is about? That's like saying to a company losing money on every item sold that you can make it up in volume.
post #31 of 34
27% profit is absolutely incredible in ANY industry...let alone tech. WOW!!
post #32 of 34
Quote:
Originally Posted by digitalclips View Post

It beats me why profits are not the deciding factor in the ranking, surely turn over is far less important.

 

Quote:
Originally Posted by anonymouse View Post

Revenue is a better measure of how much money they are moving around, thus, their effect on the (world-wide) economy as a whole.

 

Quote:
Originally Posted by FreeRange View Post

But absolutely not a better measure of success and isn't that what a ranking is about? That's like saying to a company losing money on every item sold that you can make it up in volume.

 

That depends on what you want to measure and rank. In this case it's a measure and ranking of the economic influence of these companies, not how well they are doing. If you have two companies, A & B:

 

* A -- Revenue = $1,000,000, Profit = $1,000

* B -- Revenue = $100,000, Profit = $10,000

 

If one of them were to suddenly disappear, which company's disappearance would most affect the economy?

 

Company B is "doing better" than company A in terms of how much money they are making, But company A is moving more money around in the economy, buying more stuff from suppliers, etc. So, the impact of company A's disappearance would be greater than that of company B's.

post #33 of 34
Quote:
Originally Posted by Marvin View Post

All store-based. That's why Apple shouldn't build too many stores. Wal-mart has 8,500 stores:

http://www.journalnow.com/business/article_5ad539d5-d616-55ba-ab27-aeaf45b06074.html

Their gross margins are lower too.

Yikes. Not bad, considering how much smaller Apple's retail footprint is.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #34 of 34
Quote:
Originally Posted by anonymouse View Post



That depends on what you want to measure and rank. In this case it's a measure and ranking of the economic influence of these companies, not how well they are doing. If you have two companies, A & B:

* A -- Revenue = $1,000,000, Profit = $1,000
* B -- Revenue = $100,000, Profit = $10,000

If one of them were to suddenly disappear, which company's disappearance would most affect the economy?

Company B is "doing better" than company A in terms of how much money they are making, But company A is moving more money around in the economy, buying more stuff from suppliers, etc. So, the impact of company A's disappearance would be greater than that of company B's.

Thanks for explaining. I confess I thought it was all about success rather than effect. I understand now, I can see company A in your example may well go bust leaving tons of suppliers without payment and many out of work any moment. So thus they are ranked higher than a highly profitable company. I'm not being sarcastic, I can now see this and can I well imagine that's how Wall Street thinks but I will click the sort button at the top of profit column and consider Apple number two, it makes me smile.
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
Reply
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Discussion
AppleInsider › Forums › General › General Discussion › Apple leapfrogs titans of industry to land No. 6 spot on Fortune 500