Apple’s 5 Most Profitable Lines of Business
Founded by Steve Jobs, Apple Inc. emerged in the year 1976 as a computer company but it was the release of their iPhone in 2007 that really helped to propel them to forefront of the market. Apple has evolved to a great extent, making its worth almost $500 billion. Its hardware business has helped its worth reach about $100 billion.
The country that contributed the most in the sale of Apple products and services is America. Both North and South America are major consumers of Apple products.
China is also a country of utmost importance for when it comes to the list of highest contributors to sales. The greater China area, which includes China, Taiwan, and Hong Kong, stands second. Its sales have been rising rapidly, making its contribution go up alongside it. Europe’s increase of operating profit and purchase is increasing, but at a pace that is not on par with Greater China, and thus, its significance has been deteriorating slowly. Following are the five lines of business where Apple has earned the its name:
- iPhone– iPhone is one of the most sought after smartphones of the century. It has consistently managed to hold its position ever since 2009 all across the globe. The fourth quarter of 2018 has been able to capture a market share of 15.8% and has successfully sold 64.5 million units which signify a significant deterioration from its market share of 17.9% in the year 2017. However, the iPhone features change with each new released edition, making it hard to predict each rise and fall of its market performance.
- Apple Services– Apple services include all those services related to iCloud storage, Apple music, and any Apple product. In the fiscal year 2018, Apple services have marked a revenue of $37.2 billion. After the addition of the Apple Card and video game subscription to its wide array of services, Apple expects a rise in its revenue.
- MAC– Mac has been witnessing a surge due to the fall in demand for PCs globally. In the fiscal year 2018, the sales were $25.5 billion. MAC is an essential part of the company because it is a part of the interlinked product family. In fact, it’s the original product.
- iPad– Having launched its first iPad in the year 2019, Apple has since been gaining major success with it. In the fiscal year 2018, iPad sales were $18.8 billion, and the first quarter of the year saw marked growth by 17% -a good sign.
- Other products from Apple– Apple watches, home pods, and Airpods make up fall into the Other category. New releases and new features have helped this category raise its market share significantly in Q1 of 2018 by 33%, with $17.4 billion sales for the same year.