Apple raked in a whopping 40% of all profits collected by Silicon Valley technology firms last year, according to new data. The Cupertino company also ranked first in revenue after $234 billion in sales, while second-placed Alphabet saw just a third of that.
Apple’s staggering profit of $133 billion is obviously thanks to its large profit margin of 23%, which is higher than most other tech industry giants. Alphabet and Intel, which were ranked second and third in SiliconValley.com’s report, have a 21% profit margin.
Tim Cook and co. also enjoyed the largest profit growth of $9.3 billion over 2015, while sales increased 18%. In comparison, Alphabet’s increased 14%, but Intel’s fell 1%. HP, which sits in fourth place, also saw its sales fall 5%.
“Apple’s >$200 billion cash pile also puts it at the top of the list for the balance sheet rankings,” reports 9to5Mac. “Apple increased its cash and investments portfolio by 16% in 2015. The closest runner up is Alphabet, with $78 billion in cash.”
But despite all that cash in the bank, Apple tops the list of debt, too, with $64.4 billion — up 70% over the previous year — owed out to other companies. Some of that debt will have been used to fund things like stock buybacks and dividends.
Unfortunately for Apple, it is unlikely to enjoy similar growth over 2016. Sales and profits are expected to remain flat this year, with many analysts forecasting another disappointing 12 months for Apple’s biggest business — the iPhone.
Reliable KGI Securities analyst Ming-Chi Kuo recently warned investors that this year’s iPhone could disappoint without any “attractive” upgrades. However, Kuo expects a much more compelling device with a new design and bigger improvements in 2017.