How Big Tech Makes Its Money | News & Opinion

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Collectively, the “massive 5” US tech firms—Apple, Amazon, Google mum or dad Alphabet, Microsoft, and Facebook—raked in additional than $800 billion in income final yr.

But how did they make their cash? A brand new infographic from Visual Capitalist (embedded in full under) breaks it down.

According to Visual Capitalist, 62.eight % of Apple’s $265.6 billion in income final yr got here from iPhone gross sales. Mac computer systems accounted for 9.6 %, and iPads made up 7.1 %. All different Apple services collectively, together with Apple Watch, Apple TV, Beats gadgets, Apple Pay, and AppleCare, accounted for 20.6 %.

Amazon earned 52.eight % of its $232.9 billion in income final yr from its on-line shops, 18.Four % from third-party sellers, 11 % from Amazon Web Services, and 6.1 % from subscription companies reminiscent of Prime. The on-line retail large additionally earned a reasonably penny offline—7.Four % of Amazon’s income got here from its bodily shops.

“Amazon’s quickest rising phase is offline,” Visual Capitalist wrote. “Sales in bodily shops jumped 197 % between 2017 and 2018.”

Microsoft, in the meantime, “has probably the most diversified income of any of the tech giants,” Visual Capitalist wrote. Of its $110.Four billion in income final yr, 25.7 % got here from Office merchandise, 23.7 from Azure server merchandise, 17.7 % from Windows, 9.Four % from gaming, 6.Four % from search advertisements on Bing, 5.three % from enterprise companies, 4.7 % from gadgets reminiscent of Surface PCs, and 4.eight from LinkedIn.

Alphabet and Facebook are a special story. The lion’s share of Alphabet’s 136.eight billion and Facebook’s $55.eight billion in income final yr got here from promoting, in keeping with Visual Capitalist.

For extra, take a look at the infographic under.

WhyAxis How tech giants make their billions: Visual Capitalist

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