It’s more about how likely those profits are to continue in the eyes of the market, not what they currently are. In this case, you’re comparing a company with

It’s more about how likely those profits are to continue in the eyes of the market, not what they currently are. In this case, you’re comparing a company with a massive consumer moat (and massive cash reserves to defend it), where people will continue to buy the iPhone regardless of the suppliers Apple uses, versus a company largely without such a moat. Not saying it’s correct, but I am guessing the brand and moat it provides is a large part of the difference in valuations.