Technically speaking, Apple is worth more than 1% of the global GDP and became the first publicly traded U.S. company to reach a market value of $1 Trillion in 2018. Thanks to a fleet of billion dollar products and services, as well as their strong commitment to the refurbished community, Apple continues to dominate the tech market unlike any other company.
In 2018, the iPhone alone pulled in 63% of Apple’s annual sales, earning $167 billion. Following this, Apple’s array of self-made services accounted for 14% of 2018’s profits, collecting $37 billion. These services include iCloud, Apple Music, Apple Pay, Apple Care+, Apple TV+, and more. Overall, and after deducing $164 billion in operating expenses, Apple’s gross margin was $102 billion in 2018.
However, Apple’s products and services aren’t the sole driver for their success. Steve Jobs’ philosophies on business have been carried on within the brand after his passing, stretching out their longevity. For example, Jobs’ mentality on product design - saying, “The aesthetic, the quality has to be carried all the way through.” Jobs also had an interesting take on quality, advising that, “Quality is more important than quantity. One home run is much better than two doubles.” You can see how these ideals transcended into Apple’s brand as Macs are built to last, and have many benefits that PCs simply do not offer.
For instance: most PCs need to be replaced every 4 years, but a Mac can last nearly 2x as long. A mobile phone can lose more than half its value in just one month. However, iPhones hold their value 1.5x better than competitors.
Overall, Apple continues to soar for several reasons: their ecosystem, retail presence, brand loyalty, and commitment to refurbish and recycle, and Apple trade in. To learn more about Apple’s persistent market value, take a look at the infographic below: