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Apple (AAPL) Moves Up to Number 3 on Fortune 500 List
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Apple Inc. (AAPL - Free Report) yet again features in one of the top spots in the Fortune 500 list that was unveiled yesterday. Despite fears regarding flagging iPhone sales, the tech giant managed to move north to take the number 3 spot this time, from number 5 in the prior year.
This time around, Apple with sales of $233.7 billion in fiscal 2015 was only behind Wal-Mart Stores (WMT - Free Report) and Exxon Mobil (XOM - Free Report) , which generated revenues of $482.13 billion and $246.2 billion respectively. Moreover, Apple still remains the most profitable company on the list having garnered $53 billion in profits in the fiscal.
Notably, Apple has been consistently moving upwards in this list since 2004 when it held the 301st position.
So What is Apple’s Secret?
While 2016 has been a difficult year for Apple with sales declining for the first time in the last 13 years, it cannot be denied that the company continues to be the darling of the tech space. In fact, it is still the most valuable company in the world with a market cap of $540.2 billion (as of Jun 6, 2016), though it has lost substantially from the $700 billion market cap it crossed in 2015.
Furthermore, it is notable that even amid the rocky macro-environment of 2015, Apple sales grew nearly 28%. To get a better perspective, the overall revenues of the Fortune 500 declined over 4% in 2015. Yes, a significant share of this is attributable to sluggish oil and energy market. But even then growth of this scale is commendable for Apple, given its size.
Moreover, the fact remains that iPhone still holds a premium position in the smartphone market with an incredibly loyal customer base. This is reflected in the fact that Apple holds the number 1 spot (for nine consecutive years!) in the ‘Worlds Most Admired Companies’ list, also by Fortune. In addition, increasing demand for Apple services, a strong ecosystem and enterprise partnerships are the other key growth drivers for the company.
To Sum Up
As Fortune stated “Lately, hopes have turned to the next iPhone upgrade cycle and a push to focus on India, where Apple’s market share remains miniscule. Still, even with the growing concerns, Apple’s next big leap came into view in 2015. Dubbed Project Titan and staffed with hordes of former car industry experts, Apple’s effort to leapfrog the automobile market with an electric masterpiece likely won’t reach consumers for a few more years. But when it does, Cook and company could be riding high again.”
Nonetheless, in the near term, there are some challenges for this tech bellwether as it fortifies its position in different sectors and geographies amid a difficult macroeconomic backdrop and cut-throat competition.
Apple shares currently have a Zacks Rank #5 (Strong Sell), but it can change following estimate revisions. Meanwhile, some other notable Fortune 500 movers in the tech space include Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , Facebook and Netflix (NFLX - Free Report) .
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Apple (AAPL) Moves Up to Number 3 on Fortune 500 List
Apple Inc. (AAPL - Free Report) yet again features in one of the top spots in the Fortune 500 list that was unveiled yesterday. Despite fears regarding flagging iPhone sales, the tech giant managed to move north to take the number 3 spot this time, from number 5 in the prior year.
This time around, Apple with sales of $233.7 billion in fiscal 2015 was only behind Wal-Mart Stores (WMT - Free Report) and Exxon Mobil (XOM - Free Report) , which generated revenues of $482.13 billion and $246.2 billion respectively. Moreover, Apple still remains the most profitable company on the list having garnered $53 billion in profits in the fiscal.
Notably, Apple has been consistently moving upwards in this list since 2004 when it held the 301st position.
So What is Apple’s Secret?
While 2016 has been a difficult year for Apple with sales declining for the first time in the last 13 years, it cannot be denied that the company continues to be the darling of the tech space. In fact, it is still the most valuable company in the world with a market cap of $540.2 billion (as of Jun 6, 2016), though it has lost substantially from the $700 billion market cap it crossed in 2015.
Furthermore, it is notable that even amid the rocky macro-environment of 2015, Apple sales grew nearly 28%. To get a better perspective, the overall revenues of the Fortune 500 declined over 4% in 2015. Yes, a significant share of this is attributable to sluggish oil and energy market. But even then growth of this scale is commendable for Apple, given its size.
Moreover, the fact remains that iPhone still holds a premium position in the smartphone market with an incredibly loyal customer base. This is reflected in the fact that Apple holds the number 1 spot (for nine consecutive years!) in the ‘Worlds Most Admired Companies’ list, also by Fortune. In addition, increasing demand for Apple services, a strong ecosystem and enterprise partnerships are the other key growth drivers for the company.
To Sum Up
As Fortune stated “Lately, hopes have turned to the next iPhone upgrade cycle and a push to focus on India, where Apple’s market share remains miniscule. Still, even with the growing concerns, Apple’s next big leap came into view in 2015. Dubbed Project Titan and staffed with hordes of former car industry experts, Apple’s effort to leapfrog the automobile market with an electric masterpiece likely won’t reach consumers for a few more years. But when it does, Cook and company could be riding high again.”
Nonetheless, in the near term, there are some challenges for this tech bellwether as it fortifies its position in different sectors and geographies amid a difficult macroeconomic backdrop and cut-throat competition.
Apple shares currently have a Zacks Rank #5 (Strong Sell), but it can change following estimate revisions. Meanwhile, some other notable Fortune 500 movers in the tech space include Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , Facebook and Netflix (NFLX - Free Report) .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>