Apple Ranked Twelfth in Fortune Global 500 for Revenue, Third for Profit

[MacRumors]

Apple has ranked third in the annual Fortune Global 500 list of the world's largest companies for profit, and twelfth for revenue.

This year's Fortune Global 500 companies' operating income reached a record high of $33 trillion, close to the combined GDP of China and the United States. Together, this year's Fortune Global 500 companies employ 69.9 million people worldwide and are represented by 32 countries. Wal-Mart was again the world's largest company, for the seventh consecutive year.

Apple's revenue is reported as $260.174 billion, of which $55.256 billion is profit. Apple was only surpassed in profits by investment firm Berkshire Hathaway and oil company Saudi Aramco. Interestingly, Berkshire Hathaway has a 5.7% stake in Apple, which accounts for more than a fifth of its entire value.

In spite of a slight downturn for Apple in the last financial year, Fortune remains positive about Apple's ability to make money. iPhone continues to dominate sales, although subscriptions are rapidly becoming an important part of Apple's business model.

Mighty Apple dipped a smidge in 2019, down 2% to $260 billion in sales. The computer and phone maker's ability to make money cushioned the blow. Apple earned $55 billion. Three categories tell the story of Apple's sales doldrums. iPhone sales, 55% of Apple's total, fell 14%. Increases in sales of services like streaming and subscriptions, 18% of the total, grew 16%. And wearables (AirPods and Watches) and other non-phone accessories (iPods, HomePods, and Beats products) leapt 41%, but account for only 9% of the pie.

Apple is estimated to currently have 137,000 employees, and recently reported record third fiscal quarter revenue of $59.7 billion and net quarterly profit of $11.25 billion.

Apple has ranked in the Fortune Global 500 top 20 since 2013. Last year, the company ranked one place higher for both revenue and profit. In May, Apple ranked fourth in the Fortune 500 list of America's largest companies. Apple has now ranked in the top five for seven consecutive years.

Article Link: Apple Ranked Twelfth in Fortune Global 500 for Revenue, Third for Profit

 

[SkyRom]

Apple's prices aren't nearly as bad as they used to be (except on RAM, c'mon... really Apple?) and it doesn't bug me as much that Asus, Dell and Microsoft have left them in the dust in terms of design but, until they release a laptop geared toward professionals that admits unconditional surrender on the TouchBar, it's a hard pass.

 

[Cosmosent]

CNBC just reported that most companies who have recently reported, have NO topline increase (i.e., Revenue), but do have a bottomline increase (i.e., Earnings), & that it's due strictly to SG&A expense cutting !

Nike was the ONLY exception they mentioned !

To me, those were extremely telling STATs !

First, my take on Nike, I believe they simply benefited from the Fed's extra $600 per week in UI comp.

Second, the Economy is extremely brittle !

In other words, there is NO correlation between Wall Street's success & Main Street !

Does anybody know if AAPL still has over $100B USD long-term debt ?

That could come back to bite them if the Economy tanks later this year.

 

[Peadogie]

Whatever you may think about Apple, they know how to sell products and services.

Edited for clarity.

 

[TrevorR90]

I mean, its Apple. A creator of fine products.

 

[citysnaps]

Whatever you may think about Apple, one thing is undeniable, they know how to increase profits.

Apple's GPM has fallen over the last few years.

 

[Peadogie]

Apple's GPM has fallen over the last few years.

Point taken. Post edited to reflect what I meant to say.

 

[TravelsInBlue]

Crippling your own products for the shareholders. Nice.

 

[routine_analyst]

Apple is like the titanic of profits!

Oh wait, the titanic sank.

Apple is a titan of profits!

Oh wait, that's the stalled car project by Apple.

 

[koruki]

Apple's prices aren't nearly as bad as they used to be (except on RAM, c'mon... really Apple?) and it doesn't bug me as much that Asus, Dell and Microsoft have left them in the dust in terms of design but, until they release a laptop geared toward professionals that admits unconditional surrender on the TouchBar, it's a hard pass.

I don't like the new Macbook Pro but they are still better looking than the Asus Dell stuff, the Surface has been good in terms of design. Apple's problem is they made the Macbook Pro less practical now, there is literally nothing in it now I can tell people about. I'm still using my 2012 Macbook Pro with magsafe, SD card reader, hdmi output and USB2

 

[TravelsInBlue]

I don't like the new Macbook Pro but they are still better looking than the Asus Dell stuff, the Surface has been good in terms of design. Apple's problem is they made the Macbook Pro less practical now, there is literally nothing in it now I can tell people about. I'm still using my 2012 Macbook Pro with magsafe, SD card reader, hdmi output and USB2

It’s not even practical anymore for me, and I’ve always had Macs.


I pulled the trigger on the Lenovo X1 Extreme on Wednesday.

 

[Baymowe335]

Berkshire doesn’t actually make more profit than AAPL.

They mark to market the accounting based on the value of the current equity holdings. Operating income is a much more relevant metric to use for Berkshire to see what the operations actually make.

As an example, Apple just made 11.25B in profit and Berkshire made $26B, only because their equity holdings went up for the quarter. Similarly, they could lose money if those equities decrease in value. The operating income was $5.5B.

Munger and Buffett agree with me, by the way.

Buffett and his right-hand man, Berkshire chairman Charlie Munger, famously dislike accounting rules requiring them to include unrealized investment gains or losses in Berkshire's quarterly income. Those numbers are "usually meaningless" and can be "extremely misleading," they said in the earnings release.

A better measure is Berkshire's operating income, which slumped 10% to about $5.5 billion in the period

 

[Apple_Robert]

Good for Apple. I hope they continue moving forward.

 

[MacBH928]

Berkshire hathaway makes more profit than Apple? Sheesh...

They also have the best website on the internet, looks like its built by Charlie Munger after reading "Building Websites for Dummies '97".