Apple is the most profitable company in the world.The company should generate $45-$50 billion of profit this year. That’s way more than the next-most-profitable company in the world, ExxonMobil, which generated about $30 billion of profit last year.
You knew that already.
But here’s what you might not have known:
Apple’s overall profit margin is 30%. The iPhone, most analysts agree, is more profitable than some of Apple’s other products. So perhaps the iPhone business has a profit margin of, say, 35%. The iPhone business, meanwhile, is currently generated about $100 billion of revenue per year. So it seems likely that the iPhone business is generating ~$35 billion of profit per year.
That’s more than ExxonMobil.
If not, consider this:
Five years ago, the iPhone didn’t exist.
Apple invented it out of thin air and then launched it in the summer of 2007.
In other words, the Apple division built around a product that didn’t exist five years ago is now the most profitable company in the world.
And that’s not all…