How Tech Giants make their billions
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Facebook, Amazon, Microsoft, Google (Alphabet), Apple
You hear (and probably use) all of them regularly. Popularly known as FAMGA, these are the big 5 tech companies ruling the world of internet, and pretty much the future.
A look at how they make money👇
They together generate almost $900 billion in revenues, an amount that rivals the GDP of countries such as Saudi Arabia and Netherlands.
📱Apple: While more than 50% of Apple's revenue comes from sales of iPhone, about 20% of its revenue comes from Digital Services such as ApplePay, AppleMusic etc.
💻 Microsoft: Microsoft has the most diversified revenue stream, with about 20-25% revenue coming from each of Azure, Office and Windows respectively, with balance 25% coming from Gaming, LinkedIn etc.
🤳 Google and Facebook are highly dependent on advertisement revenues, with 70% of Google's and 98% of Facebook's revenue coming from ads.
🛒 Amazon: While 50% of Amazon's revenue is from its online stores, the most profitable division AWS contributes about 12.5% of Amazon's revenue.
An interesting infographic showing the revenue split of these companies in detail: https://www.visualcapitalist.com/how-big-tech-makes-their-billions-2020/
But wait, are these the biggest revenue generating companies? No, none of them even falls in top 10. Do you know who are the top 5 companies in the world by revenue? 💸
The good old Walmart tops the list with over $500B in revenues 😮
Here's the full list- https://fortune.com/global500/2019/search/
And what about the fastest growing public company in the world? 🏃♀️
It's surprisingly a short video company out of China called MOMO! Yes, and you wouldn't have heard about most of the top 10 except Netflix. Curious? Study them here- https://fortune.com/100-fastest-growing-companies/