Founded in 1976, Apple (AAPL) became the first US company to exceed the $ 1 trillion market capitalization in 2018.
The company’s spectacular growth in sales, profits, and stock prices historically is driven by strong sales of its iPhone products.
But when the sale of popular smartphones and other technology hardware slowders, companies make aggressive efforts to turn themselves into one of the leading digital service providers in the world.
But what is the most popular and most successful business segment of the company? This article examines the most profitable Apple business line and how they contribute to their success.
Apple turnover
Although the 2019 Apple fiscal year was marked by a series of ups and downs, he succeeded in increasing his income from his service division. But the income from its most popular products, such as iPhone and Macbook laptops, dropped somewhat below the 2018 level. For the first fiscal quarter of 2020, Apple estimated income between $ 85.5 billion and $ 89.5 billion.
The company announced a revenue of $ 91.8 billion and a profit of $ 22.2 billion-records of all time for income and net income.
In the 2019 fiscal year, Apple posted sales of $ 260.2 billion on a net profit of $ 55.2 billion.
In the first quarter of 2019, revenue came at $ 4.18 per sight.
This is the highest record for the company. But in the first fiscal quarter of 2020, profit per share was up to $ 4.99.
The following is a more detailed display in the five most profitable business lines of Apple when they performed today.
iPhone
Apple’s core products are iPhone. Popular smartphones are one of the top smartphone vendors in the world.
Demand remains strong after the company released the iPhone 13, which was declared the company “set new standards for performance and empower our customers to create and connect in a new way. Sales for this model reportedly exceeded the iPhone 12, which was still” skyrocketing “in December 2021.
The company reported net sales for the $ 192 billion iPhone unit for the 2021 fiscal year compared to $ 137.8 which was reported in the previous year. Sales reached $ 38.9 billion during the fourth quarter – up to 47% from the same quarter in 2020, which produced $ 26.4 billion.
The company blames the sustainable challenges from Pandemi Covid-19 for iPhone sales lower than expected.
The previous decline in iPhone sales was caused by a slowdown in China, a longer iPhone replacement cycle, and increasing competition in the global smartphone market.
Service
The company’s service business is led by App Store and Apple Music. This segment revenue also comes from selling various services, such as Applecare, Apple Pay, iCloud Storage Services, AppleCare Guarantees, and Subscriptions to Services such as Apple Music, Apple Arcade, Apple TV+, and Apple Card, which compete with other giant payments.
The Apple service segment posted a revenue of $ 68.4 billion during the 2021 fiscal year and $ 18.3 billion for the fourth quarter. This is compared with $ 53.8 billion for the previous year and $ 14.5 during Q4-2020.
This represents the highest of all time for the unit.
Mac
Apple’s personal computer business was built around the Mac and included an iconic MacBook and Desktop Imac computer laptop. This unit produced a sales of $ 35.1 billion ($ 9.2 billion for the fourth quarter of 2021), which was an increase of $ 28.6 billion reported in 2020 ($ 9 billion in Q4-2020).
Mac’s contribution to Apple’s growth consistently fell because the personal computer industry experienced demand that slowed demand throughout the world. Keep in mind, that Apple’s personal computer business is very important for companies from a strategic perspective. That is because it is part of a broad and interrelated family product that runs in the iOS operating system.
iPad
When Apple launched the iPad in 2010, quickly became the first commercial successful tablet computer that reached the market. In the first three months after being released, the device sold more than three million units.
Although the demand for tablets around the world is reduced, Apple continues to dominate this part of the market.
This unit received sales of $ 31.9 billion during the 2021 fiscal year and $ 8.3 billion during the fourth quarter of this year. That is compared with $ 23.7 billion and $ 6.8 billion for fiscal years 2020 and Q4-2020, respectively.
Items that can be worn, homes and accessories
Apple segments that can be worn, home, and accessories consist of devices such as AirPods, Apple Watch, and Homepods. This segment posted a revenue of $ 38.4 billion during 2021 and $ 8.8 billion for the fourth quarter of this year. That was compared with $ 30.6 billion and $ 7.9 for the same period in 2020, respectively.
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