Apple’s record income makes it richer than most countries

An iPhone and some cash.

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Apple’s billions and billions in revenue are big enough to make it more valuable than most. Here’s how Apple compares to the global financial scene.

By almost any financial measure, Apple is a big deal. In January, it became the first company in the world to reach a market capitalization of $3 trillion, but although it has fallen to $2.25 trillion as of October 9, this is still an extremely impressive figure.

Apple’s revenue in its quarterly reports is arguably equally impressive, repeatedly setting new revenue records. Analysts may have mixed results that Apple sometimes narrowly misses expectations, but normal people are still impressed that revenues are reported in billions, not millions.

With Apple a market goliath and continuing to see success, it’s worth remembering that those billions Apple brings in may be more than some countries can generate.

Apple’s finances put some nations to shame. And we’re not even including the debt of Apple or the countries in question, which would put Apple even higher on the list.

Why Q3?

The figures used are based on Apple’s latest quarterly results, namely the third quarter of 2022, announced in July. We will use quarterly figures in our analysis rather than other higher quarters for a few good reasons.

For starters, these are really the last numbers to work on. Apple has results coming in at the end of October, but these are the ones available at the moment.

Second, third-quarter results aren’t Apple’s best this year. With strong seasonality in sales, third quarter results are usually the worst performer of the year, or a very close second place.

It would be much more impressive to use Q1 results, as they are usually considerably higher than Q3 results. For example, in the first quarter of 2022, Apple recorded revenue of $123.9 billion, about 50% more than the figures for the third quarter of 2021 and the third quarter of 2022.

Using third quarter numbers shows how Apple can perform in its “off-season” results. While these numbers are impressive, one can only imagine how dizzying Q1 results measure up in the same analysis.

In some cases, we will use a full year of data for the comparison, which we will count as Q4 2021 to Q3 2022.

Country Level Revenues

To determine the importance of Apple’s revenue, we’ll use the International Monetary Fund’s Gross Domestic Product (GDP) figures covering the year 2021. GDP measures the size of a country’s economy, including the value merchant of the goods and services produced and sold. .

IMF figures are based on annual GDP measured in billions of US dollars and are downloadable from its Datamapper service.

In the third quarter of 2022, Apple reported revenue of $82.959 billion over the period. If considered a country, Apple’s quarterly figure would be in 70th place, behind Oman’s $83.6 billion and ahead of Sri Lanka’s $82.5 billion.

Of course, this is a quarter-to-quarter comparison, so a full-year comparison is also necessary.

Apple quarterly revenue and net profit.

Apple quarterly revenue and net profit.

Apple’s last four quarters reported revenue of $387.5 billion. On the IMF’s GDP list, Apple would qualify in position 39, beating Malaysia ($372.7 billion) and just behind the Philippines ($393.6 billion) and Denmark ($395.7 billion) .

In theory, Apple is close to knocking out a few big names on the list, including Egypt (35th, $402.8 billion) and the United Arab Emirates (34th, $409.9 billion). However, it is far from worrying the largest economies.

The lowest trillion GDP on the list is the Netherlands (18th, $1,018.7 billion), while you have to beat Korea’s $1,798.5 billion to take its place. tenth place.

Continuing the theme domestically, Apple’s third-quarter gross margin of $35.9 billion would put it in 99th place ahead of Sudan ($35.151 billion) and behind Estionia (98th, $36.3 billion). ). The annual gross margin of $167.9 billion sits between Algeria (58th, $164.6 billion) and Qatar (57th, $179.6 billion).

Net profit for the quarter of $19.4 billion would top 117th Mali ($19.2 billion) and trail 116th Brunei ($19.9 billion). Annually, the $99.6 billion would beat Ethiopia (65th, $99.3 billion) and trail Ecuador (64th, $106.2 billion).

Apple's quarterly R&D costs.

Apple’s quarterly R&D costs.

Apple’s research and development spending has been steadily increasing, and in the second quarter of 2022 it reached $6.8 billion. That’s enough to beat 152nd place Montenegro ($5.8 billion).

Over the past four quarters, Apple has spent $25.2 billion on R&D, more than the GDP of Bosnia and Herzegovina (111th, $22.4 billion) and not far from Iceland’s 110th place ($25.5 billion).

The iPhone alone is bigger than Bolivia

On a product-by-product basis, the iPhone continues to be the biggest contributor to Apple’s bottom line, but others are still seeing considerable growth. There are often comments made during the results that each branch can be a big business in its own right.

In the third quarter, Apple reported $40.665 billion in iPhone revenue, which would put it between Bolivia (94th, $39.8 billion) and Uganda (93rd, $42.5 billion). Total four-quarter sales of $201.7 billion puts iPhone in same region as Iraq (53rd, $209.5 billion) and Ukraine 2021 (54th, $198.3 billion ).

The steady growth of the Services branch reached $19.6 billion in the third quarter, which again lies between Brunei and Mali. The four-quarter total of $77.2 billion sits between Bulgaria (71st, $80.3 billion) and Ghana (72nd, $76.4 billion)

Apple unit revenue by quarter.

Apple unit revenue by quarter.

Apparel, home and accessories carried $8.08 billion in the third quarter, sitting between Togo (150th, $8.4 billion) and Guyana (151st, $7.6 billion). Over the four quarters, earning $40.4 billion equates to more than Bolivia and second only to Uganda again.

iPad and Mac both generated similar Q3 revenue of $7.22 billion and $7.38 billion, which is just behind Somalia (151st, $7.39 billion). For four quarters, iPad’s $30.4 billion beat Macau SAR (103rd, $29.9 billion) and Mac’s $37.8 billion beat Estonia (98th, 36.3 billion) but not quite Paraguay (97th, $38.3 billion).

Apple as a person

While Apple can take on countries with its finances, it can also claim quite a few scalps from billionaires. Apple CEO Tim Cook managed to reach the 1,513 spot in Forbes’ The richest people in the world with $2 billion, but Apple itself can go much further.

At $82.96 billion, Apple’s third quarter would be just outside the top 10, beating 12th-placed Michael Bloomberg ($82 billion). The last four quarters combined at $387.5 billion would surpass Elon Musk’s top position of $219 billion, and it nearly beats the combined fortunes of $390 billion of Musk and second place Jeff Bezos (171 billions of dollars).

Third-quarter gross margin puts Apple in 37th place behind Giovanni Ferrero at $36.2 billion, with a total of four quarters moving Apple to third place, between Bezos and Bernard Arnault & Family ($158 billion) , and above both Bill Gates (4th, $129B) and Apple-friendly investment-wise Warren Buffet (5th, $118 billion).

Apple’s third-quarter net profit would be 84th, beating Reinhold Wuerth and his family’s $19 billion. The pound version would place Apple between Larry Ellison (8th, $106 billion) and Steve Ballmer (9th, $91.4 billion).

And, of course, that’s a quarter, or four quarters, of Apple’s wealth generation relative to the net worth of the people in question. A true net worth comparison would easily favor the trillion dollar company.