Founded in 1976, Apple (AAPL) became the first U.S. corporation to have a market capitalization of more than $1 trillion in 2018. The company’s impressive earnings and share price growth has historically been driven by stable sales of its iPhone products.

But as sales of popular smartphones and other technology devices have slowed, the company has put a lot of effort into becoming one of the world’s leading digital service providers.

But which business segments are the most popular and successful? This article looks at Apple’s most profitable businesses and how they contribute to its success.

 

Apple’s reversal

While Apple’s fiscal year 2019 has been characterised by a series of ups and downs, the company has successfully increased revenue from its services division. But revenue from the most popular products, such as iPhones and MacBook laptops, fell slightly below 2018 levels. Apple forecasts revenue in the first fiscal quarter of 2020 at $85.5-89.5 billion.

As a result, the company announced revenue of $91.8 billion and profit of $22.2 billion – a record in both net profit and revenue. In fiscal 2019, Apple’s sales amounted to $260.2 billion with a net profit of $55.2 billion. In the first quarter of 2019, earnings were $4.18 per share. It was a record high.

Here’s a more detailed overview of Apple’s five most profitable businesses.

 

iPhone

Apple’s main product is the iPhone.

Demand remains strong after the company released the iPhone 13, which the company said “sets a new standard of performance and gives our customers the ability to build and connect in new ways.” It is reported that sales of this model exceeded sales of the iPhone 12, which also rose sharply as of December 2021.

The company said net sales of the iPhone division in fiscal 2021 were $192 billion, up from $137.8 a year earlier. In the fourth quarter, sales reached $38.9 billion, up 47 percent from the same quarter of 2020, when the company earned $26.4 billion.

Revenue for the new iPhone has hit a new record thanks to strong demand in China and emerging markets. Only from the launch of the iPhone 15 was the first daysreceivedA total of $43.8 billion.

 

Services

The company’s service business is led by the App Store and Apple Music. Segment revenue also comes from the sale of a range of services such as AppleCare, Apple Pay, iCloud storage services, AppleCare warranties and subscriptions to such services, Apple Music, Apple Arcade, Apple TV+ and Apple Card.

The Apple services segment reported revenue of $68.4 billion in fiscal 2021 and $18.3 billion in the fourth quarter. This is up from $53.8 billion the previous year and $14.5 billion in the fourth quarter of 2020. This was a record for this segment of the company.

 

Mac

Apple’s personal computer business is built around the Mac and includes MacBook laptops and the iconic iMac desktops. Sales of this division amounted to $35.1 billion ($9.2 billion in the fourth quarter of 2021), which is more than the $28.6 billion recorded in 2020 ($9 billion in the fourth quarter of 2020).

The Mac’s contribution to Apple’s growth is steadily declining as the personal computing industry sees a slowdown in demand around the world. However, keep in mind that Apple’s personal computer business is strategically important to the company. That’s because it’s part of a broad, interconnected family of products running on the iOS operating system.

 

iPad

When Apple released its iPad in 2010, it quickly became the first commercially successful tablet computer to hit the market. In the first three months after the release of the device was sold more than three million units.

While global demand for tablets is declining, Apple continues to dominate this part of the market. Sales of this division totaled $31.9 billion in fiscal 2021 and $8.3 billion in the fourth quarter of 2021. This compared with $23.7 billion and $6.8 billion in fiscal 2020 and the fourth quarter of 2020, respectively.

 

Accessories

Apple’s home accessories and products segment consists of devices such as AirPods, Apple Watch and HomePods. Revenue from this segment was $38.4 billion in 2021 and $8.8 billion in the fourth quarter of 2021. This is up from $30.6 billion and $7.9 billion for the same periods in 2020, respectively.

 

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