Apple Inc. (AAPL): The Revenue King

Apple Inc. (AAPL)What is more important to a company, its number of users or its revenue? To Apple Inc. (NASDAQ:AAPL), that answer is obvious. Do they have a lot of customers? Absolutely. However, there are areas where other companies are catching up user-wise, but not necessarily revenue-wise.

First quarter reports are showing that Android’s momentum has nearly caught up to Apple Inc. (NASDAQ:AAPL)’s iOS App Store. Google Inc (NASDAQ:GOOG) is no stranger to large amounts of revenue, as it generated over $50.1 billion in 2012 revenues; however, it is not in the same discussion as Apple. Apple Inc. (NASDAQ:AAPL) generated over $156.5 billion, more than three times Google Inc (NASDAQ:GOOG)’s revenue, in 2012.

As for Apple apps and Android Apps, it appears that iOS users are generally more willing to pay for content than Android users. App Annie, which provides “app ranking data and high quality mobile analytics” stated:

While the iOS App Store and
Google Inc (NASDAQ:GOOG) Play both had solid gains in app downloads last quarter, Google Play had a higher percentage growth rate as well as a greater gain in absolute downloads. As of Q1 2013, Google Play’s app downloads were close to 90% of iOS App Store downloads.

From Q4 2012 to Q1 2013, iOS App Store quarterly revenue grew by roughly one-quarter. Meanwhile, Google Play app revenue grew by roughly 90%. While Google Play had the higher growth rate, the iOS App Store gained more in absolute revenue and earned about 2.6x that of Google Play in Q1.

Despite its rising revenues, Apple’s stock has plummeted in recent months. Since Oct 1, the stock is down more than 40%. Google has basically remained level, increasing just .81%.

Let’s look at revenue trends to see whether the graph above is really one of their focuses. Apple’s revenues have increased an incredible 481% in the past five years, and more than 5% in the first quarter of 2012. Its revenues have increased annually for more than ten years, and they have grown over 2,521% since 2003.

Google’s revenues, like Apple Inc. (NASDAQ:AAPL)’s, have risen annually since 2003. However, in the past five years, they are up only 230.2%. Interestingly, their ten year growth of 3,422% has increased more than Apple’s!