Roger Fingas
Despite recent setbacks Apple nevertheless climbed from fifth to third place in this year's Fortune 500, ranking major U.S. corporations based on their gross revenues.
Apple managed over $233.7 billion for the 2016 list — published on Monday — versus just under $182.8 billion in 2015. The company displaced Chevron, which fell out of the top 10, while remaining behind big-box retailer Walmart and oil giant Exxon Mobil. Totaling over $482.1 billion, Walmart's revenues were nearly twice those of Exxon.
Apple was well ahead of its rivals in the technology industry however, and in fact the only other high-tech firm in the top 10 was AT&T — sitting in 10th place with about $146.8 billion.
Fortune commented that while Apple is the world's most profitable publicly-traded company, it "finally appeared to hit a wall" in 2015, as iPad sales continued to slide and its latest iPhones "barely outsold" the iPhone 6 and 6 Plus. The business magazine also pointed to "modest" Apple Watch sales, and problems in Asia towards the end of the year.
The company's immediate hopes are said to lay with next-generation iPhones and a focus on its relatively untapped Indian market. In the longer term, though, Fortune pointed to Project Titan, which it described as an "effort to leapfrog the automobile market with an electric masterpiece." Apple typically isn't expected to ship a car until at least 2019 or 2020.
Charles Martin
Christine McKee
Malcolm Owen
AppleInsider Staff
William Gallagher
Oliver Haslam
21 Comments
Already being spun as a negative by the usual suspects with the question, “Did Apple rise on the list because its revenue increased or because the other two companies’ revenue went down?” See how that works people? How can a failed has-been company that no longer innovates possibly move up that list legitimately? Meanwhile #36 Alphabet and #25 Microsoft aren’t even in the top ten. How’d that happen?
Remember years ago when people said Apple would never catch up to Samsung Electronics in revenues? They've not only caught hem, but handily passed them.
Gross revenues. How meaningless is that without decent profit margins? Are you listening Walmart investors?
A new $1 billion drug in the biotech/Pharma industry is considered a blockbuster. The goal of every company in those sectors. Yet Apple Watch, out the gate with first year revenue in the $5-7 billion range is considered lackluster. And the iPhone SE, which will likely increase revenue by several billion dollars after cannibalization is accounted for, is questioned as a desperate move.
And, mark my words, Apple will not build and sell cars to end consumers. The company is looking to be part of the car-as-a-service revolution with its greater transportation efficiencies and recurring revenue model. Apple will construct depots in and near population centers where cars can be serviced, recharged, cleaned/prepped, and unleash swarms of cars to serve each geographic area, starting with cities it sees as ideal for such a service and expanding as it learns. At first the cars can be human piloted, but the model doesn't need to change (same depots, same swarms) once the cars become fully autonomous and the local laws support that option. So obvious.