How Does Apple Make So Much Money?

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How Does Apple Make So Much Money?

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$171 billion: How Did They Do It? Apple made $171 billion in revenue last fiscal year. There are 7 billion people on Earth. So Apple made the equivalent of $24.50 per person. Here’s how they did it! Did you pay Apple $24.50 last year?

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No. 1: iPhones Apple’s biggest revenue driver and fastest growing product over the last two years was its iPhone. Over half – 53.4% -- of Apple’s revenue was from its iPhone lineup. Revenue from the iPhone was up 16% year over year and nearly 100% over two. Revenue: $92.3 billion

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No. 2: iPads Apple’s second-largest revenue driver was the iPad. The iPad contributed 18.7% to Apple’s top line. But growth’s been slowing – it grew only 3% year over year versus 61% year-over-year growth in the previous fiscal year. Revenue: $32 billion

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No. 3: Macs Rounding out the top three is Apple’s Mac line. Revenue has been flat over the past two years; growth’s been hard to come by. However, this is impressive in a down PC market. Revenue: $21.5 billion

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No. 4: iTunes, Software, and Services With a CAGR of 31% over the last two years, this is Apple’s second-best performing segment. In addition to adding to Apple’s top line, this segment adds value by improving the user experience for other Apple products. Revenue: $16.1 billion

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No. 5: Accessories Apple’s accessories segment will get a boost from the recent Beats acquisition. Look for growth to pick up from its two-year average of 13% per year. It hasn’t kept up with Apple’s total revenue growth over that period, but it’s still better than… Revenue: $5.7 billion

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No. 6: iPod Once a high-flyer, iPod sales have cratered. On the heels of a 25% drop in fiscal 2012, the iPod dropped 21% this year. Many analysts have pointed to cannibalization from the higher-margin iPhone. Revenue: $4.4 billion

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Leaked: Apple’s Next Smart Device (Warning, It May Shock You)