Apple has moved to the 5th position in Fortune 500’s most valuable companies in the world. The company was ranked at number 6 in 2012 but thanks to a steady climb in net sales it has moved up one position. Although Apple’s profits declined by 11.3 % in 2013 the overall sales revenues increased. The major impact on the financials was made by the acquisition of Beats Audio for $3 billion earlier this year.
Apple’s Net Sales are $170,910 million in 2013
Apple has become the most valuable tech company in the world surpassing its major rivals Google, Microsoft and Samsung. Apple managed to achieve $170,910 million net sales in fiscal year 2013. The increase in net sales is the result of huge popularity of iPhone 5S, iPads and MacBooks. Apple launched new products during the year including Mac Pro, iPhone 5S, iPhone 5C, new iPad, iMacs and MacBooks.
The company’s brand loyalty is so strong that even when critics are not fond of its new products it still manages to sell millions of units. Mac Pro was the major advancement in the server business which attracted many people to buy the $9000 product. Apple has a market value of $470,069.40 million which alone is capable to get new investors.
There was a 10% drop in earnings per share compared to 2012 but predicted EPS for the next 10 years sees an increase of over 100%. The major setback was the drop in sales from the iTunes store but Beats Audio acquisition will counter it as digital sales are on the rise and its already a reputable brand in the minds of the consumers.
Beats Audio digital music application will be integrated with iTunes in the near future and Apple optimized headsets will arrive sometime this year as well. The company is also working on iPhone 6 which will have two variants with different screen size and a new iPad is also in the making.
Source: Fortune 500