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.
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 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.
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.
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.
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.