Apple's iPhone revenue alone bigger than Microsoft, Boeing, Procter & Gamble

Posted:
in iPhone edited January 2014
As the iPhone's popularity continues to soar, Apple's mobile handset revenues alone place the business among the largest in the world, exceeding companies like Microsoft, Intel and Coca-Cola.

Apple TV setup screen


Apple's iPhone unit would be the ninth largest company by revenue in the Dow Jones Industrial Average if it were a component of the famous market index, according to data collated by Businessweek. Cupertino's handset business raked in more revenue over the preceding 12-month period than mutual fund mainstays Microsoft, Boeing, and Procter & Gamble, among others.

Today ? just shy of seven years after its introduction ??the iPhone unit's $88.4 billion in annualized revenues not only dwarfs those of American corporate icons like Nike and Coca-Cola, but is nearly three times as much as Apple itself recorded for the entirety of the company's 2008 fiscal year, the first full year of the iPhone's availability. The figure also bests the rest of Apple's products, including the Mac, the iPad, and iTunes, combined over the same period, according to the report.

When late Apple CEO Steve Jobs announced the iPhone in 2007, he set the standard for the smartphone's success at capturing one percent of the global mobile phone market. Now, the iPhone commands more than 7 percent of the market while reaping more than 60 percent of the profits.

Apple's new flagship iPhone 5s and mid-range iPhone 5c ? which debuted to record sales of 9 million last weekend ? may widen the gap between Apple and other perennial blue chip stocks even more. New features, like the innovative Touch ID biometric security system, and expanded distribution with anticipated new carrier partners like China Mobile, the world's largest wireless provider, have many analysts pushing expectations for Apple's future earnings even higher.
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Comments

  • Reply 1 of 52
    Some analysts would say it's a bad news : )
  • Reply 2 of 52
    matrix07matrix07 Posts: 1,993member
    Quote:

    Originally Posted by ealvarez View Post



    Some analysts would say it's a bad news : )

     

    Don't you know? Apple will be like Blackberry soon. /s

  • Reply 3 of 52
    A Highly Profitable Commodity that is Highly Valued in a High Capacity Marketplace equals High Gross Revenues.
  • Reply 4 of 52

    Analysts believe Apple's iPhone is making too much money. They predict the Brinks trucks will be piling up trying to offload at the bank causing the cash flow to get stuck. APPL stocks plunge.

  • Reply 5 of 52
    This article puts a positive spin on the good fortune Apple continues to experience, but Wall Street is working overtime to negate everything positive about Apple.
  • Reply 6 of 52

    With so many eggs in one basket, certainly they must be doomed?  /s

     

    That certainly is an amazing statistic! It's incredible how much they've grown since releasing the first iPhone.

     

    Edit: This makes Microsoft's iPhone funeral even funnier now :)

  • Reply 7 of 52
    drblankdrblank Posts: 3,383member
    Quote:

    Originally Posted by matrix07 View Post

     

     

    Don't you know? Apple will be like Blackberry soon. /s


     

    The iPhone will be a bigger failure than Blackberry, Windows phone and Palm phones COMBINED.   /s

  • Reply 8 of 52
    drblankdrblank Posts: 3,383member
    Quote:

    Originally Posted by GadgetCanadaV2 View Post

     

    Analysts believe Apple's iPhone is making too much money. They predict the Brinks trucks will be piling up trying to offload at the bank causing the cash flow to get stuck. APPL stocks plunge.


     

    No, they think that they don't make enough money, and they want them to make a cheaper phone so they can increase market share.

  • Reply 9 of 52
    Winning
  • Reply 10 of 52
    drblank wrote: »
    No, they think that they don't make enough money, and they want them to make a cheaper phone so they can increase market share.

    …. and then tell people to sell when Apple's per unit profit drops.
  • Reply 11 of 52
    My favorite computer is made by a phone company. Hmpf.
  • Reply 12 of 52
    Quote:
    Originally Posted by ealvarez View Post

    Some analysts would say it's a bad news : )

     

    Actually, it makes Apple a one trick pony on the revenu side. A miss on an iphone refresh has the potential to trim half of the stock price because of the iphone weight on EPS. 

     

    This is why I keep pushing for more iphone models. We will have the "low cost" next year when the 5c drop to $400-$450. But I wish Apple would make a bigger screen size option so that people wanting this dont go buy other phones.

  • Reply 13 of 52
    herbapou wrote: »
    Actually, it makes Apple a one trick pony on the revenu side.

    They also dominate the profits in PC sales, tablet sales, personal-media-player sales, and media-extender sales. If not the most profitable digital media services company certainly one of the most prolific and well known, but most importantly it helps tie all their services and devices together in a way that no one has come close to matching. How the hell is that "one trick"?
  • Reply 14 of 52
    sipsip Posts: 210member

    Apple would need to expand hugely if it wants/needs to capture more of the market -- as it is, Apple's contractors can't supply enough inventory to satisfy demand. Apple would probably need to start up its own factories and then we'll have people complaining Apple is getting to be like Microsoft and demanding these assembly plants be based in the USA, where the next Mac Pro is due to be assembled. I am absolutely dreading the likely cost of a new Mac Pro (£2500+ for base model?) to replace my 8-core early-2008 model and am seriously considering buying a 27" iMac.

  • Reply 15 of 52
    noahjnoahj Posts: 4,501member
    One trick pony? Hardly, they make money in all their businesses. However iPhone is a major revenue stream. And messing with that revenue stream is ill advised. They have done well with the continual upgrades and with avoiding following every whim of their competitors. Every call of, this one will be a failure has been met with resounding success so far. While nothing can last forever, cheering for the failure makes one look foolish. (Not saying this is what you are doing.) Apple does well with their own market analysis and they continue to improve their offerings. Send in your suggestions, but don't expect everything you think to be important to resonate with the millions of other people out there. Apple is obviously doing something right, they cannot make their phones fast enough... If anything, that is their main problem, they cannot build enough product to keep up with demand. Which is a good problem to have indeed.
  • Reply 16 of 52
    Don't see google on that list but there stock continues to rise and sits around $900 a share. Man, google must have been OF THE CHARTS and way more profitable than any of those on the list. Atleast, that's what investors must think.
  • Reply 17 of 52
    we're going to get a lot of these comparisons in the next few months%u2026

    The next will be Apple's iPad revenues compared to all the PC makers in the world%u2026.

    It always amazes me that the Dow 'can't' put Apple into the DJIA, because it's TOO BIG. It shot past all the 'dogs' (those that typically get replaced), and now would so unbalance the Dow that it would be the "Apple Industrial Average," if you tried to replace just one company with Apple, or the resultant divisor would be so out of whack that a 1 dollar Apple up or down would make the markets crazy volatile.
  • Reply 18 of 52
    ealvarez wrote: »
    Some analysts would say it's a bad news : )

    And they would be right. Partially. It is definitely no good for a company to have all the eggs in one basket; they shouldn't be relying on a single product to bring in the majority of their revenue. I think that is what analysts are saying. Fortunately the iPhone 'isn't going anywhere' and will remain a profitable business for the unforeseeable future, but Apple really needs to be on top of things, and make all products profitable. Fortunately that is what they're doing, but some analysts aren't seeing this bigger picture, possibly because they're narrow-minded.

    Besides, the iPod was Apple's biggest seller, and Steve rightfully said: "we're gonna kill it".
  • Reply 19 of 52
    MacProMacPro Posts: 17,735member
    ealvarez wrote: »
    Some analysts would say it's a bad news : )

    You are so right … I can hear it now … , "Too much reliance on one division of the company, better slash AAPL! " :no:
  • Reply 20 of 52
    denobin wrote: »
    Winning

    Bi-winning
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