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Apple Big in Business News

If you happen to follow the stock market (or even if you don’t) you may have heard that Apple posted record-level quarterly financial results on Tuesday. Analysts have pointed to a combination of the release of the wildly popular iPhone 4S and the holiday season as the source of the extra performance. However, this is just the cherry on top of the sundae. Apple’s growth has been meteoric these last few years, largely on the back of the iPhone and the iPad.

But most of the numbers you see really don’t mean much to your everyday person. A market cap of $416 billion? Okay, that’s a lot. But how much is it?

The Wall Street Journal had a great infographic the other day breaking it down. Here are couple of highlights.

Apple’s market cap value sits right around $416 billion. That means that, right now, Apple is worth approximately:

  • as much as Exxon Mobil.
  • twice as much as Wal-Mart
  • five times as much as Amazon.com
  • ten times as much as eBay
  • twenty times as much as Time-Warner Cable.

Okay… we’re getting there. What else? How about cash on hand? Apple has $97.6 billion in cash. They could buy (at a 10% premium to market value) Dell, Netflix, Activision, Yahoo, Best Buy, and Motorola.

Okay… that’s a lot of scratch, but how did they get so much? Let’s take a look at this quarter’s income. Apple made $13.06 billion in one quarter. That’s more than Intel, Microsoft, Google and Yahoo made in one quarter combined.

The real big one, though, is that Apple’s revenue is greater than over 100 individual countries. Yes… countries. At $46.33 billion, Apple’s revenue is roughly equal to the GDP of Bulgaria.

All this adds up to a very healthy Apple, a far cry form the years that business analysts universally labelled the company as “beleaguered.”

In other business news, the former head of Apple’s retail stores, Ron Johnson, has moved on to become CEO of J.C. Penney. Will he be able to work the same magic that has made Apple a retail powerhouse? Could it lead to an Apple presence in J.C. Penney stores? I guess only time will tell.

OWC Chris S.
the authorOWC Chris S.
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