Apple Beats IBM To Land At No. 17 On The Fortune 500 List

In more than one ways, Apple’s rise in recent years has been truly meteoritic. With the launch of its iDevices, Apple shot to a height of success and popularity in so brief a time that it must be a record in itself. Now, the company has beat the long-time king of the world of computing, IBM, to land at no. 17 spot on the Fortune 500 list of companies.

When one starts to view Apple’s revenue and profits, they are truly staggering. While other companies have taken a decade, or a number of decades, to reach the position they are at now, Apple has started its rise in recent years and reached the pinnacle in no time!

According to the Fortune 500 list, Apple’s 2011 revenue was a whopping $108.2 billion which landed it squarely on the 17th spot. IBM, although long being one of the most thriving and profitable tech companies, has gone down to no. 19 with its net revenue of 106.9 billion for the year 2011.

However, what also matters is that out of these huge revenues, how much is landing as profit in Apple’s pocket. And that is where the real catch is. Apple has been able to devise a business model which is perhaps one of the most profitable business models in terms of profit-over-revenue. For instance, another of the notable players in the arena of tech world, Hewlett-Packard, has a net revenue which beats Apple, being $127.2 billion during the year 2011. However, in terms of profit, HP stands at no. 24.

On the other hand, Apple stands at no. 3 in terms of profit, second only to two oil giants, Exxon and Chevron! This means that despite being on no. 17 in terms of revenue, Apple is able to make a huge profit out of its sales and this has earned it the third spot on the list of profits.

To be exact, Apple raked in $25.9 billion profit during the year 2011, a number which is only expected to increase during the year 2012. With the launch of the new iPad, which Apple is selling in millions each month, and the expected launch of the next iPhone, it is only inevitable that Apple’s profits will continue their exponential rise. It wouldn’t be too surprising if, within a year or two, Apple is able to scoop the top spot on the Fortune 500 list, in terms of profit.

Source: Fortune 500 list

Courtesy: CNET

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Salman Latif is a software engineer with a specific interest in social media, big data and real-world solutions using the two.Other than that, he is a bit of a gypsy. He also writes in his own blog. You can find him on Google+ and Twitter .

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