like it’s walmart according to wikipedia
In: 17
Walmart has to work harder to keep its customers. It needs to build big stores, supply them, keep prices down until the local competition is killed off, and still it runs the risk of an upstart boutique store or Amazon taking away its business.
On the other hand, Apple customers will live through multiple inconveniences and actively not buy from Apple’s competitors just to keep their workflows, networks, or sense of self worth (by having an iPhone). Also, while companies tend to saturate the US market and seek profits globally, Apple sits pretty by having a vice grip on the most valuable consumer market in the world.
Most people therefore think that they can own a piece of Apple today and can find a buyer who will take it from them at a higher price later. They have less confidence than they’ll be able to pull this off with Walmart.
This also helps with those numbers: (it’s also why they’re not too ‘right to repair’ friendly)
**How much money does Apple make on repairs?**
It’s not easy to find the exact revenues that repair and service bring to Apple. But, the indications are that it is worth the effort. For instance, the trade journal Warranty Week estimates that the sales of AppleCare earned the company **$8.5 billion in 2021**, a 20% increase from the previous year.
Because humans invest in the stock market and aren’t sophisticated investors leading to imperfect market capitalization.
In addition there is more to a company then revenue.
Building off others who have explained the difference between profit and revenue, it’s the most valuable because value is tied to an expectation of future profits. Would you rather own a company that makes $1M in profits per year or a company that makes $100 in profits per year? The answer is why the companies with the highest profit expectation are the most valuable. (That doesn’t mean it is profitable to buy their stock though, it just means the stock price will be relatively high.)
Let’s say I sell $10 of lemonade but the ingredients cost $9 so I make $1. Or I can sell a $5 chocolate bar and it cost $1 so I make $4. Even though the chocolate bar was less revenue, I made more profit because the costs were lower.
what a topic to bring up . can i scream in this thread about how today im fed up with apple customer service . i’m done . they don’t care . they’re rude . they can not resolve . only cause . cut throat .
Because we invented some stupid thing called a stock market where the value of a company’s shares isn’t really determined by financials and fundamentals but by the demand for the asset itself, with people basing their decision to buy or sell on speculative beliefs.
Plus, I believe Apple has crazy amounts of cash reserves and low debt. Other companies may have higher revenue but also high debt.
Others are commenting about profit margins and stuff… which has almost nothing to do with why you asked.
Apple is the most valuable in market capitalization, that is, its combined shares make it more valuable than any other company.
Apple isn’t the company with the most revenue simply because Walmart sells more (measured in USD). It’s that simple. Revenue is income.
Value doesn’t necessarily mean revenue, they’re separate things.
Companies are valued based on the expectations of future returns. As an “investor” you buy a stock because you think it will either give you acceptable returns through dividends (companies paying out excess cash to shareholders), or through capital gains (stock price increasing). So revenues.. profits.. etc. Are only one part of a complicated picture when you think about how valuable a company is.
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