One of the greatest question in many minds is how Apple is such a profitable company? How they are doing it and what they are doing it to achieve it? So here we would try to answer this for you by putting some facts and theory.
Apple has many great product lines for example MacBook, Apple TV, iPad, iPod and iPhone. Without a doubt we can say that it’s the iPhone which is the most popular one. According to a study, out of every five smart phone sold in the market one will be an iPhone. So mathematically speaking there shares should be around 20% right? No its not, it’s at whooping 65% (The data is from 2014). The numbers were very weak when they first entered the market in 2007 (Nokia was the market leader then with 62%).
Now you might think, then How Apple is so big when it comes to revenue? A justifiable answer is that they are launching only two phones in a year and targeting premium users. Fantastic build quality and ease of simplicity is add on to it, which attracts most of the users around the world. It has become a style icon, a fashion statement, their advertising techniques are at par when compared to their arch rivals. The interesting parts is that this resemblance is not limited to USA, its spread globally. Last year Apple teamed up with China Mobile (One of the largest telecom provider in the world) and that boosted their sales to a great extent. An example to support this can be seen, when Chinese stock markets clashed recently their shares were down by 5%. Apple is also giving good competence to the Chinese smart phone maker Xioami.
Now let’s draw the bigger picture. The manufacturing cost of an iPhone 6 is roughly $227 and for iPhone 6+ its $242. Last quarter only, Apple said to have sold 184.2 million iPhones. Considering raw figures and taking an average profit of $619 profit per iPhone, the total profit will come around $114 Billion. If you are still amazed by the figures, this is enough to run a small country like Morocco.
You might be thinking what they are doing with so much money? They are buying lands for their new facilities. Apple recently acquired 36000 Acres of land which is almost similar to the size of Manhattan City. Also they are doing larger investments on the field of Renewal Energy. Apple is aiming to run all their facilities in renewal energy in near future.