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    How Apple Makes Money

    How Apple Makes Money

    Apple, the world's most valuable company, has announced sales of more than $81 billion for the three months ending in June, a 36% rise over the same quarter last year. That comes up to around $900 million each day, or $10,000 per second...for three months.

    The iPhone remains Apple's most important product, accounting for slightly under half of total sales, although its proportion has declined in recent years as Apple has expanded into wearables (such as the Apple Watch and AirPods) and services.

    That Services business is likely to excite investors the most these days, since income from services (such as Apple Music, the App Store, Apple Pay, Apple TV, and others) is far more predictable than revenue from $1,000+ phones. It also has enticing profit margins (70 percent gross margin).

    Of course, Apple can only sell the majority of those services because there are already (literally) a billion iPhones in circulation. Apple can only sell an iPhone to so many people, but as long as they retain their market dominance, they can keep individuals in the "Apple ecosystem."

    Apple is anticipating that its next major product breakthrough will be the Apple Car, which has been under development in relative secrecy since 2014.

     

    Source: Apple SEC Filings, chartr

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