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Apple Jumps to #17 in Fortune 500 Rankings

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Original poster
Apr 12, 2001
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fortune_500_2012_cover.jpg


Fortune yesterday released its 2012 "Fortune 500" list, ranking America's largest companies by revenue. As a result of its continued strong growth, Apple rose 18 spots from last year's rankings to land at #17 in the new rankings, which are based on companies' fiscal year reports.
The company emerged from the tragic passing of co-founder Steve Jobs saddened but in no perceptible way weakened. Under CEO Tim Cook, the company continued pumping out new products -- like a significantly upgraded version of the iPad tablet. Apple nearly doubled its earnings per share in 2011, compared to 2010. That helped nudge management to announce plans for the firm's first dividend since 1995, returning some of the $97.6 billion in cash it had accumulated. Apple fans and analysts alike also continue to await a long-rumored television set from the gadget maker.
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Apple's 2011 profits of $25.9 billion led the company to a new high as the third most profitable company behind energy giants Exxon Mobil ($41.6 billion) and Chevron ($26.9 billion). Microsoft sits in fourth place with profits of $23.2 billion.

Overall, Exxon Mobil ($453 billion in revenue) surged to barely overtake Wal-Mart ($447 billion) in the race for the top spot in the Fortune 500.

apple_fortune_500_through_2012.jpg



Apple's Fortune 500 rankings, 1983-2012 (Source: setteB.IT)​
With very strong performances in the first two quarters of fiscal 2012, Apple is putting itself in position to surge even higher in next year's Fortune 500. Apple's official revenues totaling $85.5 billion in just the first half of the year could allow it to threaten to enter the top five next year, as the fifth position is currently held by General Motors at $150 billion for 2011.

Article Link: Apple Jumps to #17 in Fortune 500 Rankings
 
Article Link
https://www.macrumors.com/2012/05/08/apple-jumps-to-17-in-fortune-500-rankings/
Schizoid

Schizoid

macrumors 65816
May 29, 2008
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anyone else wondering where these 'new' products are that they're 'pumping out'...
 
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GFLPraxis

GFLPraxis

macrumors 604
Mar 17, 2004
7,152
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Wonder where Apple ranks by profit rather than revenue? Companies like Wal-Mart are low margin and make up for it by being ridiculously humongous. Apple's got crazy revenue, but their profit margins are even nuttier. Wouldn't be surprised if they topped a list by profit, and that's what matters to investors.
 
WildCowboy

WildCowboy

Administrator/Editor
Staff member
Jan 20, 2005
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GFLPraxis said:
Wonder where Apple ranks by profit rather than revenue? Companies like Wal-Mart are low margin and make up for it by being ridiculously humongous. Apple's got crazy revenue, but their profit margins are even nuttier. Wouldn't be surprised if they topped a list by profit, and that's what matters to investors.
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See the article. ;)

They were third in profits behind Exxon Mobil and Chevron.

It's also interesting to note that because Fortune uses fiscal years for its rankings and Apple's fiscal year starts at the end of September, Apple's data for this year's rankings includes the fourth calendar quarter of 2010 instead of 2011.

If Fortune had used Apple's four calendar quarters for 2011, Apple's revenue would have been $20 billion higher because of the monster iPhone 4S launch quarter.

(Yes, there are other companies in the Fortune 500 using fiscal calendars that don't correspond to the actual calendar, so you'd have to adjust all of those other companies' numbers too if you wanted a true "calendar 2011" comparison.)
 
B

bobenhaus

macrumors 65816
Mar 2, 2011
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Does it bother you that Apple gets the maximum profit from its products? Even if the products is only worth 30% percent it selling price.
 
N

Nebulator

macrumors newbie
Aug 31, 2009
7
7
Turnover is vanity profit is sanity

It is all very well saying Apple is 17th by turnover, the real business measure is in profit. If you order the Fortune list by profit Apple is indeed third, however Microsoft is fourth taking $2Bn less profit on nearly $40Bn less revenue.

By normal business measurement, Microsoft is doing better as it make more $$$ profit per $$$ revenue:

Rank Co Revenue Profit
17 Apple 108,249.0 25,922.0
37 Microsoft 69,943.0 23,150.0

Only saying....
 
Flood123

Flood123

macrumors 6502a
Mar 28, 2009
624
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Living Stateside
Schizoid said:
anyone else wondering where these 'new' products are that they're 'pumping out'...
Click to expand...

Not sure release of the iPhone 4s, The New iPad, Apple TV3, and a slight spec bump in an macbookpro constitutes "pumping out" new products when most of their computer line has not been refreshed in over a year. Maybe my definition is out of line with theirs. I can accept that.
 
H

hoing

macrumors member
Aug 7, 2010
69
0
This has got to be a joke. It should be #1 in misleading adverstisement, communistic properties, and overall a totalitarian dictorship of a corrupt, hyprocritical company.

Posted from my HTC Droid Inc
 
F

flynndean

macrumors regular
Oct 12, 2011
101
0
London, England
bobenhaus said:
Does it bother you that Apple gets the maximum profit from its products? Even if the products is only worth 30% percent it selling price.
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A product is only worth what the market will pay for it and Apple seem to have one hell of a devoted and fanatical cult willing to throw money at them at the moment.

Apple are re-writing the rules on what margin should be made on hardware. Tech companies were in decline for many years as "box-shifters" rose to prominence making stupidly small margins just to compete.

It's an anomaly, but one that should serve Apple well for a good few years yet.
 
J

JHankwitz

macrumors 68000
Oct 31, 2005
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appsforkids said:
Let's hope the 'new' macs are something really special, I need to get a new mac soon so I can start waiting for the iPhone 5.
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You haven't noticed that the 'old' macs are already something really special? All my Macs work really great, and provide me with what I need.

All Apple devices are really tools. It's what you do with those tools that makes them really great.
 
WildCowboy

WildCowboy

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Staff member
Jan 20, 2005
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Nebulator said:
It is all very well saying Apple is 17th by turnover, the real business measure is in profit. If you order the Fortune list by profit Apple is indeed third, however Microsoft is fourth taking $2Bn less profit on nearly $40Bn less revenue.

By normal business measurement, Microsoft is doing better as it make more $$$ profit per $$$ revenue:

Rank Co Revenue Profit
17 Apple 108,249.0 25,922.0
37 Microsoft 69,943.0 23,150.0

Only saying....
Click to expand...

Is profit as a percentage of revenue what makes a company "better", or is it total profit?

If I have a business and I make $50 in profit on revenue of $75, am I "better" than Microsoft? An extreme example, but it's easy to argue that total profit is a better metric than profit margin.

Microsoft and Apple are in such different categories (hardware/software) that it's hard to compare the two. But no doubt Microsoft continues to rake in the profits.
 
F

fertilized-egg

macrumors 68020
Dec 18, 2009
2,109
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bobenhaus said:
Does it bother you that Apple gets the maximum profit from its products? Even if the products is only worth 30% percent it selling price.
Click to expand...

You mean like how the $529 Google Nexus One was estimated to cost $175? There are a lot more things that go into making products outside the cost of components.

Apple prices are generally par for the course with the comparable industry average sometimes slightly higher (iPhone) and sometimes slower lower (new iPad 16G) In fact, here's a CEO in the industry complaining that Apple priced iPad "too cheap".

The biggest reasons behind Apple's secret for margin, outside the efficiency of a small product portfolio and large scale component shopping, is that Apple buyers tend to buy the expensive models and Apple doesn't discount their products much when they get old. If everyone bought nothing but the most expensive Samsung/Motorola/HTC/Sony phones, they would all be enjoying those higher margins too.
 
IJ Reilly

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
ArtOfWarfare said:
I am.

Logically, Apple's stock should rise on this news.

It'll probably fall because it never does what makes sense.
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Or it won't make any difference, because it doesn't make any difference.

Revenues don't mean much, if anything. Consequently, neither does the Fortune 500.

----------
WildCowboy said:
Is profit as a percentage of revenue what makes a company "better", or is it total profit?

If I have a business and I make $50 in profit on revenue of $75, am I "better" than Microsoft? An extreme example, but it's easy to argue that total profit is a better metric than profit margin.

Microsoft and Apple are in such different categories (hardware/software) that it's hard to compare the two. But no doubt Microsoft continues to rake in the profits.
Click to expand...

Earnings, per share. That in the end is the only thing that matters to investors, aside from dividends.
 
J

JHankwitz

macrumors 68000
Oct 31, 2005
1,911
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Wisconsin
bobenhaus said:
Does it bother you that Apple gets the maximum profit from its products? Even if the products is only worth 30% percent it selling price.
Click to expand...

Does it bother you that Microsoft sells an Office DVD for $200 that cost them about $0.93 to make? :rolleyes:

There's a heck of a lot more to business than just selling assembled component parts.
 
I

iBug2

macrumors 601
Jun 12, 2005
4,531
851
flynndean said:
A product is only worth what the market will pay for it and Apple seem to have one hell of a devoted and fanatical cult willing to throw money at them at the moment.

Apple are re-writing the rules on what margin should be made on hardware. Tech companies were in decline for many years as "box-shifters" rose to prominence making stupidly small margins just to compete.

It's an anomaly, but one that should serve Apple well for a good few years yet.
Click to expand...

Not really. You cannot DIY an iPod or an iPhone like a PC. So it's not comparable.
 
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