Apple jumps from fifth to third in 2016 Fortune 500 list

Posted:
in General Discussion
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.
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Comments

  • Reply 1 of 21
    cincyteecincytee Posts: 403member
    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.... 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.
    Yeah, Apple clearly "hit a wall" by posting a paltry 27.8% growth in annual revenue. I'm guessing other wearables makers would be happy to have Apple Watch's "modest" sales, too. Two words: Ass. Hats.
    radarthekatmike1slprescottpalomineschlacklostkiwifastasleepjony0
  • Reply 2 of 21
    lkrupplkrupp Posts: 10,557member
    Already being spun as a negative by the usual suspects with the question, “Did Apple rise on the list because its revenue increased or because the other two companies’ revenue went down?” See how that works people? How can a failed has-been company that no longer innovates possibly move up that list legitimately? Meanwhile #36 Alphabet and #25 Microsoft aren’t even in the top ten. How’d that happen?
    edited June 2016
  • Reply 3 of 21
    ericthehalfbeeericthehalfbee Posts: 4,472member
    Remember years ago when people said Apple would never catch up to Samsung Electronics in revenues? They've not only caught hem, but handily passed them.
    schlack
  • Reply 4 of 21
    radarthekatradarthekat Posts: 3,828moderator
    Gross revenues.  How meaningless is that without decent profit margins?  Are you listening Walmart investors?

    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.
    edited June 2016 slprescottschlack
  • Reply 5 of 21
    anantksundaramanantksundaram Posts: 20,401member
    Gross revenues.  How meaningless is that without decent profit margins?  Are you listening Walmart investors?
    Fortune has been ranking companies the same way for many decades now. It is what it is.

    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.
  • Reply 6 of 21
    macxpressmacxpress Posts: 5,782member
    Apple is DOOMED!!!!

    Tim should be fired!
  • Reply 7 of 21
    slprescottslprescott Posts: 765member
    Applying this to history...

    In 1969, NASA "just barely" flew men safely to the moon and back, delivering a "modest" step forward for mankind.

    Rayz2016cincyteeMacProschlackpalominelostkiwi
  • Reply 8 of 21
    jungmarkjungmark Posts: 6,926member
    I thought Apple is doomed. I keep hearing they should license iOS, drop the "failing" watch, and need another grand slam pronto or they'll be out a business in a year. 
    schlack
  • Reply 9 of 21
    techprod1gytechprod1gy Posts: 838member
    "Despite recent setbacks". What? I will agree that some of the "Magic" that Apple was pulling of consistently under Jobs has lessened. However, from a pure business standpoint Apple is performing very well. They performed so well in years past with some blockbuster products that there is an unrealistic expectation for that to repeat on a frequent basis which unfortunately is impossible.
  • Reply 10 of 21
    I really don't get it at all. Supposedly, Apple's future is in question. Supposedly, the company's market share is slipping. For a fact, Apple's share price is dropping but yet Apple makes gains on some random lists. Why doesn't Apple make gains where it actually helps shareholders? Alphabet and Amazon are way down the list but they're the stocks making huge gains with nosebleed P/Es. I give up. I guess Apple shareholders are only going to stay frustrated. It appears to me Apple is doing quite well financially but I guess it's not doing as well as certain investors expect. I'm willing to bet Apple making this list won't help attract big investors at all. They're all going to be running to Amazon, Tesla and Alphabet.
  • Reply 11 of 21
    schlackschlack Posts: 719member
    Apple stock is incredibly undervalued. Get in now while the rest of the market continues to not realize it. Even at 150 it would only be modestly valued, when compared to valuations of its peers. I wouldn't be surprised at all to see Apple trading at 150 by end of 2017 (50% gain over today).
  • Reply 12 of 21
    palominepalomine Posts: 362member
    Wall Street press writes about Apple in the screwy way that it does because it is taking advantage of the hype surrounding the stock. It's an innovative company so of course there will be some wild speculation as to what they are up to next. 

    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?
    patchythepiratebadmonk
  • Reply 13 of 21
    dasanman69dasanman69 Posts: 13,002member
    schlack said:
    Apple stock is incredibly undervalued. Get in now while the rest of the market continues to not realize it. Even at 150 it would only be modestly valued, when compared to valuations of its peers. I wouldn't be surprised at all to see Apple trading at 150 by end of 2017 (50% gain over today).
    Sog35 is that you? 
    singularity
  • Reply 14 of 21
    jungmarkjungmark Posts: 6,926member
    schlack said:
    Apple stock is incredibly undervalued. Get in now while the rest of the market continues to not realize it. Even at 150 it would only be modestly valued, when compared to valuations of its peers. I wouldn't be surprised at all to see Apple trading at 150 by end of 2017 (50% gain over today).
    Sog35 is that you? 
    Probably not. No diatribe against Tim Cook. 
    singularitydasanman69
  • Reply 15 of 21
    anomeanome Posts: 1,531member

    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.

  • Reply 16 of 21
    artdentartdent Posts: 69member

    More significantly, Apple was far-and-away #1 in profits, earning more than the next two companies (JPMorgan Chase & Berkshire Hathaway) combined.

    patchythepirate
  • Reply 17 of 21
    revenantrevenant Posts: 621member
    Moving up in Forbes list by "barely outselling" a previous model (which was a ridiculous number to start with) that outsold any other phone made by any other company not on Forbes' top ten. 
    I can see why everyone wants to sell their stock in this lacklustre company. 
  • Reply 18 of 21
    joogabahjoogabah Posts: 139member
    palomine said:
    Wall Street press writes about Apple in the screwy way that it does because it is taking advantage of the hype surrounding the stock. It's an innovative company so of course there will be some wild speculation as to what they are up to next. 

    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?
    Now think about all the other areas in which people with access to media channels are able to brainwash and hoodwink the masses.  Heterosexuality is the classic example.  As if there were such a thing!  And yet people really buy into it.  There wasn't even a word for it until the 1890s in English and just about everyone walks around today thinking humans have a sexual instinct like animals, even when everyone experiences homosexual desire (yes you do; you know it!).  Propaganda works!  People just want to belong.  And who has the energy to match the ambitious sociopaths and resist?  It's exhausting just trying to figure out what's really going on.
  • Reply 19 of 21
    kevin keekevin kee Posts: 1,289member
    "Apple does no good" slogan keeps coming. Isn't this suppose to be a good news? Yet media managed again to spin it into another Apple is Doom. I suppose it's "Apple is Doom" FOREVER in their eyes. I am sick of these reporting, as if there was no difference whether Apple reached 3rd spot or dropped to 10th spot, both are reported as "bad".
    edited June 2016
  • Reply 20 of 21
    palominepalomine Posts: 362member
    joogabah said:
    palomine said:
    Wall Street press writes about Apple in the screwy way that it does because it is taking advantage of the hype surrounding the stock. It's an innovative company so of course there will be some wild speculation as to what they are up to next. 

    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?
    Now think about all the other areas in which people with access to media channels are able to brainwash and hoodwink the masses.  Heterosexuality is the classic example.  As if there were such a thing!  And yet people really buy into it.  There wasn't even a word for it until the 1890s in English and just about everyone walks around today thinking humans have a sexual instinct like animals, even when everyone experiences homosexual desire (yes you do; you know it!).  Propaganda works!  People just want to belong.  And who has the energy to match the ambitious sociopaths and resist?  It's exhausting just trying to figure out what's really going on.
    That is so sarcastic that I don't get it! HUh?
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