How Apple Became the Monster it is

Apple ($AAPL) generated nearly $400 billion in revenue in 2022.

Today, I’m going to break down their 5 most profitable products and services.

They’ve gone from making $8 billion in 2004 to a projected $450 billion in 2023. But only 5 products and services are responsible for this increase…

Here are Apple’s 5 most profitable products and services:

• iPhone

• Services

• Mac

• iPad

• Other

I’ll dive into each…

iPhone

The iPhone has been Apple’s cash cow since 2008. It makes up over 50% of Apple’s revenue.

Although iPhone sales stagnated in 2015 - 2020, 2021 and 2022 both had large increases in iPhone sales. (Guess everyone needed a new phone for all the TikTok’s they were making during the pandemic)

Services

The main revenue drivers in Apple’s service business are the App Store and Apple Music.

But they also make money with:

• AppleCare

• Apple Pay

• Apple TV+

• Apple Card

• iCloud storage (my least favorite, iykyk)

Their services revenue has grown year over year since 2013.

Mac

Global demand for personal computers has waned.

Mac revenue has been flat from 2011-2020.

But this doesn’t mean you should discount Mac’s contributions to Apple’s growth. It’s still important for having people on their interlinked IOS operating system.

iPad

When iPads launched, they were immediately successful. They brought in over $19 billion in their first year.

But sales peaked in 2014 and haven’t recovered since.

Now, iPad sales remain in the $20-30 billion range.

Other

These are your wearables and accessories:

• Beats

• AirPods

• Apple Watch

Apple has seen year-over-year growth in its wearables category since 2015. It’s estimated that AirPods alone make up 25% of their revenue in this category.

It’s no wonder why Apple became the first $1 and $2 trillion dollar company. People absolutely love their products and services.

This demand and brand loyalty make $AAPL one of my favorite stocks to invest in. Do you own any Apple? Let me know by replying to this email!