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How the Top 5 Global Companies Make their Billions

The technology industry is where the majority of the leading global companies generate their billions. Through this, they have risen to billion-dollar market capitalisations.

Despite the technology commonalities, the cash flow analysis and growth are quite different.

While some of these giants generate revenue by providing a diverse range of services, goods, and data storage, others have a narrow focus. 

This way, they have surpassed key sectors to become the world’s most valuable publicly listed companies. In 2021, they collectively generated $1.2 trillion in revenue.

Here is how the top global companies are making their billions.

Apple

Apple is a technology company that produces smartphones, laptops, tablets, smartwatches, wearables and accessories.

With its vast market, it had a market capitalisation of $2.406 trillion in the second quarter of 2022. This ranks it as the most valuable company by market capitalisation.

It makes money by selling high-end digital and electrical items such as Apple iPhones, iPads, and Mac laptops.

Its iPhone brand accounts for more than half of its income. In the fourth quarter of 2021, iPhones accounted for 22% of all smartphone sales globally.

In 2021, its generated $365.8 billion revenue in which iPhone contributed 52.5%, iPad 8.7%, Mac 9.6%, Wearables 10.5%, and services 18.7%.

Microsoft corporation

Microsoft is a software company behind software packages such as Windows operating systems, Bing search engines, Microsoft Office, Office 365, and Microsoft Laptops. It also builds enterprise applications and CRM packages, among other technology solutions.

Through this, its market capitalisation as of the second quarter of 2022 was $2.038 Trillion.

Microsoft makes most of its money from its Azure cloud services. This accounted for over a third of the company’s total revenue and 22% of the total cloud market.

Microsoft Azure (server products and cloud services) accounted for 31.3% of the $168.1 billion revenue recorded in 2021, followed by Office (office products and cloud services) at 23.7%.

Others are Windows at 13.8%, Gaming at 9.1%, LinkedIn at 6.1%, Search Ads at 5.1%, Enterprise Services at 4.1%, Microsoft Surface Devices at 4.0%, and others at 2.7 %.

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Alphabet

Google’s parent firm, Alphabet Inc, is a technology corporation. It has a market capitalisation of $1.543 trillion.

Its product Google has a presence in cloud computing and is also the world’s most popular search engine. Through its massive userbase, Alphabet has generated billions of dollars in revenue. 

From the $257.6 billion generated in 2021, Google (advertising google properties) contributed 69%, Google others 18.3%, Google Ads (Advertising Google Network members 12.3% and Other Bets 0.4%.

Amazon

Amazon is the world’s largest online retailer. It sells a wide range of things, including electronics, mobile phones, laptop computers, clothes, books, toys, and other items.

It has a market capitalisation of $1.251 trillion as of the second quarter of 2022.

In 2021, Amazon’s net sales climbed by 22% to $469.8 billion, up from $386.1 billion in 2020.

Amazon’s online stores account for over half of the company’s revenue. The Online stores (physical and digital products) contributed 47.3% to the $469.8 billion generated in 2021.

The third-party seller services contributed 22%, Amazon web services (AWS) 13.2%, Amazon prime 6.8 %, advertising services 6.6%, physical businesses 3.6%, and others 0.5%.

Tesla

Tesla is well-known for producing electric vehicles. It has a market capitalisation of $780.46 billion as of June 2022.

The US-based company makes money from selling solar panels, battery cells, energy storage products and cars. Electric cars generate the biggest revenue.

In 2021, Tesla’s annual net income was $5.519 billion, an increase of 665.46% from 2020.

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