5 ms·

These market capitalizations do not seem sane to me.. that's 3,076 dollars for every us citizen, including all the kids. I think this might be the moment the

• crazygringo 8y ago
  Remember that the customer base is global, not just U.S. But just ask yourself, over the next 30 years will somebody produce that much profit for the company? Think of the 10 cell phones, 7 laptops, 5 iPads, Apple Music subscription, etc. that you'll purchase over the next 30 years. If you spend $1,000/yr on Apple products and it's 20% profit, they make $200/year x 30 years = $6,000. Then discount accordingly... There's nothing crazy about it, no shark-jumping necessary.
• matheweis 8y ago
  Is it that bad, though? Apple is selling $1000 iPhones at 70% profit margins with a US market penetration of ~40%. Handwaving some really bad math, Apple will have a trillion dollars in profits from that segment alone over the next 10 years. This discounts worldwide markets and every other product line that they also have.
  • earenndil 8y ago
    That 70% profit margin doesn't count r&d, marketing, salaries, services, software, etc. Not to mention that the iphone has significant market penetration outside the us e.g. it's a major status symbol in most of eastern asia, and it has I think 70% market share in canada (!).
  • skinnymuch 8y ago
    Apple barely hits half of a $100B a year in profit overall. They aren’t going to do a trillion dollars of profit over the next 10 years. And are going to be insanely far from that profit level from iPhones in US or otherwise alone.
• thejosh 8y ago
  It's almost like Apple is a global company.