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Charted: Apple’s Profit of Nearly $100 Billion in 2022

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Apple's profit visualized from 2021-2022.

Charting Apple’s Profit of Nearly $100 Billion in 2022

How do Apple’s profits reach almost as high as $100 billion in a single year?

The world’s largest company, and America’s most profitable, earned a massive $394.3 billion in revenue in 2022 against expenditures of $295.5 billion. That gave it a net profit of $99.8 billion, up 5.4% from 2021 and 73% from 2020.

For a more granular look at Apple’s massive profit, Rakshit Jain has visualized Apple’s key financial metrics with data sourced from the company’s 2022 annual report (September 2022).

iPhone Sales Contribute the Most to Apple’s Profit

Out of all of Apple’s revenue streams, it’s clear the iPhone is the company’s cash cow.

From September 2021‒2022, net iPhone sales contributed 52% of the company’s total revenue, dwarfing revenue from other products including the Macbook, Apple Watch, Airpods, and services.

Apple Net Sales2021‒222020‒20212019‒2020
iPhone$205,489M$191,973M$137,781M
Mac (Macbooks and iMacs)$40,177M$35,190M$28,622M
iPad$29,292M$31,862M$23,724M
Wearables, Home, & Accessories$41,241M$38,367M$30,620M
Services (Apple Music, TV, iCloud etc.)$78,129M$68,425M$53,768M
Total$394,328M$365,817M$274,515M

And revenue from iPhone sales is still growing, by 7% from 2021 and nearly 40% compared to 2020. Mac and services such as Apple Music and Apple TV also saw higher growth in 2021-2022, both up nearly 14% year-over-year.

The iPad was the only product that saw a contraction in revenue growth compared to 2021.

Geographically, Apple’s highest net sales came from the Americas, at nearly $170 billion. In contrast, all of Europe, the Middle East, Africa, and India combined for $95 billion in annual net sales.

Apple’s Expenditure and Profitability

On the other side of the balance sheet, cost of sales (the total cost of manufacturing and selling a product or service) was the biggest expense for Apple, coming in at $223.5 billion or 76% of the company’s expenditures.

Apple Expenditures2021‒222020‒212019‒2020
Cost of Sales$223,546M$212,981M$169,559M
R&D$26,251M$21,194M$18,752M
Selling, general, and administrative$25,094M$21,973M$19,916M
Provisions for taxes$19,300M$14,527M$9,680M
Other Expenses/(Income)$334M($258M)($803M)
Total$294,525M$270,417M$217,104M

Comparatively, research and development ($26 billion) as well as other operating costs ($25 billion), though both giant figures for most companies, accounted for less than 18% of Apple’s expenditures. And because of this massive windfall, the company’s provisions for income taxes were also a massive $19 billion.

The key to Apple’s profitability is how its strong brand has allowed it to tap into an excellent gross margin percentage. The company’s total gross margin was $171 billion in 2022 or 43.3%, which means for every dollar of revenue earned, Apple made 43 cents in gross profit.

Apple's Gross Margin2021‒20222022 (%)2020‒20212021 (%)
Products$114,728M36.3%$105,126M35.3%
Services$56,054M71.7%$47,710M69.7%
Total$170,782M43.3%$152,836M41.8%

And this figure is even higher when looking at the segmental break-up of gross margins. In the services category (Apple music, TV, iCloud etc.), Apple made almost 72 cents in gross profit for every dollar earned in revenue.

Apple’s Profits in 2023?

Whether Apple will break $100 billion in profit is a question that can only be answered in their next annual statement, due in September 2023.

However, in its latest report, Apple did warn of “downward pressure” on its margins—which will impact profitability in 2023—because of currency fluctuations.

But even if that elusive $100 billion annual profit proves evasive, Apple stock remains a favorite for retail investors and shareholders alike.

Keen to know how Apple’s financials stack up against other tech giants? Check out How Big Tech Revenue and Profit Breaks Down, by Company for comparisons between Amazon, Google, Microsoft and Apple.
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This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.

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Technology

The World’s Biggest Cloud Computing Service Providers

Cloud computing service providers generated $270 billion in revenues last year, concentrated among a few giants.

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This tree map shows the biggest cloud computing service providers globally by market share.

The World’s Biggest Cloud Computing Service Providers

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Today, the three largest cloud computing service providers command 66% of the global market.

Amazon, Microsoft, and Google have generated billions in revenues through their cloud infrastructure that provide the computing power companies need to store data. What’s more, most AI models are run on the cloud, creating a surge in computing demand for cloud providers.

The above graphic shows the largest cloud providers globally, based on data from Synergy Research Group.

Breaking Down the Cloud Market

Here are the world’s top cloud computing service providers based on enterprise revenues as of the fourth quarter of 2023:

ProviderCountryMarket Share Q4 2023
Amazon Web Services🇺🇸 U.S.31%
Microsoft Azure🇺🇸 U.S.24%
Google Cloud🇺🇸 U.S.11%
Alibaba Cloud🇨🇳 China4%
Salesforce🇺🇸 U.S.3%
IBM Cloud🇺🇸 U.S.2%
Oracle🇺🇸 U.S.2%
Tencent Cloud🇨🇳 China2%
Other🌐 Other21%

With 31% of the global market share, Amazon’s cloud division posted $24.2 billion in revenues over the quarter.

AWS is a major cash engine for the company, but growth slowed over 2023 as enterprises and startups cut back on tech spending. Annual sales growth compared to the same quarter last year grew by 13%—far below competitors Microsoft and Google, whose cloud divisions grew by 30% and 26%, respectively.

As we can see, U.S. firms make up the lion’s share of the market, while China’s Alibaba Cloud and Tencent Cloud together comprise 5% of the global share.

The AI Boom and the Cloud

Given that a significant chunk of AI models are run on the cloud, the industry may be positioned to see greater demand as momentum accelerates.

In fact, newer AI systems are as much as 10 to 100 times larger than older models. In line with this, major cloud providers are seeing high demand for cloud services to allow companies across financial to manufacturing sectors to run large language models on their platforms.

Today, 98% of companies globally rely on the cloud for at least one part of their business applications, which may present a market opportunity for the industry as advancements in AI continue to grow.

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