apple-vs-google-revenues

Apple vs. Google Revenues

YearAppleGoogle
2022$394.33B$282.83B
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Read Next: Apple Business Model, Google Business Model, Google Subsidiaries, What Happened To Google Glass?, What happened to Google Plus?, How does Google Maps make money?, Who Owns Google?, How Does YouTube Make Money?, History of Youtube, How Do YouTubers Make Money?

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Google Business Model

hidden-revenue-model-google
A hidden revenue business model is a pattern for revenue generation that keeps users out of the equation, so they don’t pay for the service or product offered. For instance, Google’s users don’t pay for the search engine. Instead, the revenue streams come from advertising money spent by businesses bidding on keywords.

How Does Google Make Money

google-revenue-breakdown
Alphabet made $148.95B from Google search and others, $31.7 billion from the Network members, ยฃ28.8 billion from YouTube Ads, $19.2 billion from the Cloud, and $28 billion from other sources (Google Play, Hardware devices, and other services).

Apple Business Model

apple-business-model
Apple has a business model that is divided into products and services. Apple generated over $394 billion in revenues in 2022, of which $205.5 came from iPhone sales, $40 billion came from Mac sales, over $41 billion came from accessories and wearables (AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and accessories), $29.3 billion came from iPad sales, and $78.13 billion came from services.

Apple Business Growth

apple-business-growth
iPhone and Services sales represented the main revenue drivers in 2022. Within the service revenues, the fastest growing sub-segment was the advertising business Apple built on top of the App Store, followed by the Mac, Accessories & Wearables, and the iPad.

Apple Distribution

apple-distribution-strategy
In 2022, most of Apple’s sales (62%) came from indirect channels (comprising third-party cellular networks, wholesalers/retailers, and resellers). These channels are critical for sales amplification, scale, and subsidies (to enable the iPhone to be purchased by many people). In comparison, the direct channel represented 38% of the total revenues. Stores are critical for customer experience, enabling the service business, and branding at scale.

Apple Value Proposition

apple-value-proposition
Apple is a tech giant, and as such, it encompasses a set of value propositions that make Apple’s brand recognized, among consumers. The three fundamental value propositions of Apple’s brand leverage the “Think Different” motto; reliable tech devices for mass markets; and starting in 2019, Apple also started to emphasize more and more privacy to differentiate itself from other tech giants.

How Much Is Apple Worth?

how-much-is-apple-worth
In 2022, Apple is worth two and a half trillion dollars. Apple generated over $205 billion from iPhone sales in 2022, which accounted for over 52% of its net salesโ€”followed by services revenues at over $78 billion, wearables and accessories at over $41 billion, Mac sales at $40 billion, and iPad sales at over $29 billion.

Apple Cash On Hand

apple-cash-on-hand

Apple Revenue Per Employee

apple-revenue-per-employee
Apple had 164000 full-time employees as of 2022, generating $2,404,439 per employee.

Apple iPhone Sales

apple-iphone-sales
In 2022, the iPhone represented over 52% of total Apple’s sales and the underlying force that powers up Apple’s business ecosystem. In 2022, the iPhone generated over $205 billion in revenue, compared to almost $192 billion in 2021.

Revenue Per Employee

revenue-per-employee

Apple Mission Statement

apple-mission-statement-vision-statement
Appleโ€™s mission is โ€œto bring the best user experience to its customers through its innovative hardware, software, and services.โ€ And in a manifesto dated 2019 Tim Cook set the vision specified as โ€œWe believe that we are on the face of the earth to make great products and thatโ€™s not changing.โ€

The Economics of The iPhone

how-does-apple-make-money
Apple’s made over $394 billion in revenues in 2022, of which over $205 billion or 52% of its total revenues came from the iPhone. Yet, the iPhone isn’t just a hardware product; it’s a business platform that combines hardware (iPhone), operating system (iOS), and a marketplace (the App Store). Thus, the company still makes most of its money around a single product which powers up an entrepreneurial ecosystem.

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