“iPhones are a great business,” Mike Murphy writes for Quartz.
“Since its debut a decade ago”,” Murphy writes, “Apple has made as much money as Microsoft — a company against whom it fought for the hearts and minds of computer owners for decades — and Alphabet — who former Apple CEO Steve Jobs launched a ‘thermonuclear war’ against after it launched a competing smartphone operating system—combined.”
“Adjusted for inflation since 2007, Apple has brought in $321.02 billion, and together, Alphabet and Microsoft have brought in a nearly-identical $320.7 billion,” Murphy writes. “Even in nominal terms, Apple’s profits have totaled $307, compared to Alphabet and Microsoft’s $301 billion.”
Read more in the full article here.
MacDailyNews Take: “I like our strategy. I like it a lot.”
SEE ALSO:
Former Google Sr. VP: ‘If you truly care about great photography, you own an iPhone. If you don’t mind being a few years behind, buy an Android.’ – July 31, 2017
PC Magazine’s Miller: Apple’s iPhone 7 Plus is the best smartphone I’ve ever used – November 23, 2016
iPhone 7 Plus review: One month later – October 18, 2016
TechSpot reviews Apple’s iPhone 7 Plus: Absolutely decimates the competition – October 12, 2016
AnandTech reviews Apple’s iPhone 7 and 7 Plus: ‘Unparalleled, a cut above anything else in the industry’ – October 10, 2016
Computerworld reviews Apple’s iPhone 7 Plus: There’s never been a better time to switch to iPhone – October 7, 2016
PC Magazine reviews Apple’s iPhone 7 Plus: Editors’ Choice – September 20, 2016
Tom’s Guide reviews Apple’s iPhone 7 and iPhone 7 Plus: Great upgrades, but one is greater – September 20, 2016
More evidence Apple’s iPhone 7/Plus is more than a modest refresh – September 20, 2016
Professional photographer Benjamin Lowy puts Apple’s iPhone 7 Plus cutting-edge camera to the test – September 20, 2016
Apple’s A10 Fusion chip miracle – September 20, 2016
The iPhone’s new A10 Fusion chip should worry Intel – September 16, 2016
Apple’s remarkable new A10, S2, W1 chips alter the semiconductor landscape – September 15, 2016
Wired reviews Apple’s iPhone 7/Plus: ‘Fantastic’ – September 14, 2016
The Verge reviews Apple’s iPhone 7/Plus: ‘The future in disguise’ – September 13, 2016
Hope they can keep it up
I honestly don’t even think of MS any longer – just like IBM. Both companies that were going to “destroy Apple” over the decades…how’d that go?
If Apple is pulling in the green so strongly, what prevents Apple’s P/E from going up close to where Microsoft’s and Alphabet’s P/E sit? Apple would seem to have as much to offer in terms of growth as either of those two companies, except for the fact that they’re mostly dealing with software while Apple is dealing in hardware. I’m not complaining about this but I’d honestly like to know where my misunderstanding lies.
I realize the iPhone is basically selling in a saturated smartphone market, so it’s possible if Apple finds another decent revenue stream, Apple’s P/E will rise higher. It’s just that I tend to associate a higher P/E with investors believing a company has a better future than they do with a company having a lower P/E. I figure that’s why Apple is always seen as a doomed company. Investors don’t seem to have the confidence Apple has any growth left. It’s just weird to me.
Imagine if Apple had been using that cash hoard over the years to actively grow the company like Amazon does. It’s possible Apple could have long ago reached that $1T market cap. Of course, that’s just my theoretical take. However, companies can end up growing too fast and that’s not always a good thing. Product focus can get lost along the way.
I believe Apple is doing just fine as it is but Wall Street rarely seems to be satisfied with the company’s near-stellar performance. Critics nitpicking over a possibly delayed iPhone launch is absolutely preposterous.
Wall Street always regards Apple as a one-trick pony. Originally they only produced Macs. Then they only produced iPods and now they only produce iPhones. If Apple we’re to release a wildly successful car, the company would still be doomed as it would be claimed to be so dependent on that one product.
The reality is entirely different and I think that Tim Cook is trying to change that perception by regularly pointing out things like how Apple’s services alone would count as a Fortune 500 company, but it seems to be falling on deaf ears.
With regards to your observation about the smartphone market being saturated, I think it’s important to bear in mind that there are two ends of that market. The cheap end of the smartphone market is saturated, but the premium end of the smartphone market has potential for growth as newer users discover that there are better options than their cheap smartphone. Apple only operates in that premium part of the market and performs very strongly in that sector.
easy to explain. AAPL’s BACN trajectory with respect to CFE (+-BUN) will always be greater than MSFT or GOOG. Granted, easier to track EGG YTD than intangibles.