| Cult of Mac

Apple becomes world’s most profitable company


International governments plan to rethink tax rules for the ‘digital age’
Apple earned more profits than any other company in the world.
Photo: Pixabay/Pexels CC

Apple made more money in the last year than any other company in the world, according to the new Fortune 500 rankings. With annual profits of $57.5 billion, no other enterprise came particularly close, with the nearest rival earning about $8 billion less.

This goes a long way toward explaining why Apple remains the most valuable publicly-traded company in the world.

Apple earnings blow past analysts’ estimates yet again


Apple earnings blow past analysts’ estimates yet again
Apple had another record-breaking quarter, with strong growth in iPhone, Mac, iPad, Services, etc.
Photo: Cult of Mac

Apple took in $81.4 billion in revenue during its most recent financial quarter, up 36% from the same quarter of last year. And profits were up as well, with earning per share hitting $1.30.

Market analysts just can’t keep up with how well the iPhone-maker is doing. These results beat expectations handily.

Pandemic spending spree might lift Apple to record $100 billion quarter


Apple will reveal how well the iPhone 12 is selling on January 27
Apple quarterly earnings will be revealed on Wednesday, along with an executive call to investors that will reveal much more about the iPhone 12 launch.
Photo: Cult of Mac

Working and schooling from home has led to a rush of computer purchases, to Apple’s benefit. The Mac-maker is set to reveal the results of its most-recent financial quarter on Wednesday, and analysts predict quarterly revenue will break through the $100 billion mark for the first time.

Apple loses marketshare but still makes the most money


Apple profits
Apple can afford to lose some marketshare because of how profitable it is.
Illustration: Cult of Mac

Apple is the headline in two new studies. One seems alarming as it shows Apple’s share in the smartwatch market has declined by 14 percent.

But the second study shows Apple as the biggest money maker in the smartphone market by a long shot. Thanks to iPhone X, Apple held 62 percent of the market share in Q2. Its closest rival, Samsung, has suffered double-digit sales losses and is a distant second at 17 percent.

Apple R&D seems stingy in face of massive revenues


Apple raked in the cash last quarter.
Apple R&D spending would have to double to match some of its competitors.
Photo: Jim Merithew/Cult of Mac

Apple spent a whopping $12.7 billion on research and development last year. And $51 billion since Tim Cook became CEO. But one analyst says that might not be enough.

The company actually spends less on R&D as a percentage of the money it takes in than many of its competitors. About half as much.

Apple could rake in $11 billion from augmented reality


LEGO AR Studio
Apple AR could help you shop for LEGOs in your living room, and help Apple make lots of cash.
Photo: Ed Hardy/Cult of Mac

Augmented Reality (AR) is still an emerging technology, but Apple is poised to profit from it significantly. Or that’s the prediction of one analyst anyway.

And all the extra billions in revenue wouldn’t require the rumored Apple AR Glasses, though that would help.

Apple’s Cannibalizing The iPad With The iPad Mini



The latest data from Display Search suggests that the iPad mini is cannibalizing iPad sales, and that Apple won’t sell as many larger iPads this year as it anticipated. Generally speaking, self-cannibalism is something Cupertino’s okay with… but they may not like the taste in their mouths nearly as much this time.

Old iPhones Are Collapsing The iPhone’s Average Selling Price, And Maybe iPhone Profit Too


Sales of the iPhone 4S and iPhone 4 are eating into the iPhone 5.
Sales of the iPhone 4S and iPhone 4 are eating into the iPhone 5.

Apple’s iPhone penetration strategy is to not release a lot of conflicting models, but to drop the price on previous iPhone models every time the new one comes out.

Right now, for example, Apple sells the iPhone 5 starting at $199 on contract, the iPhone 4S starting at $99 on contract, and the iPhone 4 with a two-year contract. In this way, Apple can sell an iPhone to anyone, regardless of their income level.

This strategy might be leading to negative repercussions for Apple, though, at least according to a new report, which suggests that Apple is proportionally selling considerably fewer iPhone 5 units during launch than they sold iPhone 4S and iPhone 4 units during their launch window.

The Truth About Apple’s Taxes


Apple's taxes due and tax rate for 2011 don't match reported numbers
Apple's taxes due and tax rate for 2011 don't match reported numbers

Earlier in this day, we reported on a New York Times piece in which the paper claimed that Apple was using a variety of measure to avoid paying U.S. income tax. It turns out that the Times based key pieces of its information on a study that had been discredited two weeks prior.

The data used by the Times included a report by the Greenlining Institute, which made errors in computing Apple’s supposed tax rate at 9.8% for the 2011. The data used by the report effectively compared Apple’s 2011 profit with taxes paid by the company for profits in 2010 and drew unfounded conclusions as a result.