APPLE INC

Apple Inc. is engaged in designing, manufacturing and marketing mobile communication and media devices,
personal computers, and portable digital music players. The Company's products and services include
iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS
and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It sells its
products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers,
and resellers.

Revenue can be defined as the amount of money a company receives from its customers in exchange for the
sales of goods or services. Revenue is the top line item on an income statement from which all costs and
expenses are subtracted to arrive at net income.

The iPhone has been the most profitable operating segment for the company over the last few years, and
much of this recent growth in revenue can also be attributed to iPhone sales. Sales of the iPhone have been
on the rise in the last few years, constantly increasing its share of Apple’s total revenue. The iPhone’s share
of Apple’s total revenue reached the highest figure to date in the first quarter of 2018, when 62.8 percent of
Apple’s total revenue worldwide was generated by iPhone sales.

Considering the importance of the i Phone for Apple, it is no surprise the largest smart phone markets in the
world are also the most profitable regional markets for the technology giant. As of the third quarter of 2020
(2Q '20 calendar year), the Americas were the most profitable geographical region for Apple. Driven by the
U.S. market, the region has been the most profitable one for the company since the beginning of 2012.
Europe, a mature smart phone market, was the second biggest regional market for Apple. The region of
Greater China held the largest share of global smart phone sales to end users in recent years.

Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple
Pay, Apple Care, Apple Arcade, Apple News+ and more, is an important revenue driver for Apple amid
flagging i Phone sales, leading Apple to focus more effort on its services category.

iPhone, iPad, and Mac are the best tools for business. They help employees solve problems in creative ways,
be productive wherever they are, and collaborate more effectively. Our powerful hardware and versatile
platforms create a unique environment to build custom apps for your company. And you can find hundreds
of thousands of apps for business on the App Store.

Introduced I-pads to the consumer market, the iPad is Apple’s tablet computer. This particular device was a
pioneer in the tablet market, and aims to fill a gap between smart phones and laptop computers by offering
another mobile device option for consumers.

FACEBOOK
Facebook competes with other companies that sell advertising to marketers, as well as companies that
provide platforms for communicating and sharing content among users’ various social networks. Those
platforms include websites and mobile applications that allow users the ability to connect and communicate
with family and friends. The company's sites and apps include social networking site Facebook, photo- and
video-sharing app Instagram, and messaging apps Messenger and WhatsApp. Facebook also provides an
ecosystem that allows users to connect through its Oculus virtual reality products.

Facebook competes with other companies that sell advertising to marketers, as well as companies that
provide platforms for communicating and sharing content among users’ various social networks.

Facebook breaks down its revenue into two separate segments: Advertising and Payments and other fees.
The company does not do a separate breakdown for net income.
Annual revenue by region, starting from fiscal to the recently completed year. United States & Canada
remained the biggest region, accounted for 43% of Facebook’s total revenue in 2019.

One must note that a majority of Facebook’s MAUs and DAUs are from Asia-Pacific region. Despite that
the region accounted for only 21% of the company’s total revenue in 2019.

Revenue from payments is derived from the net fee Facebook receives from developers using its payment
infrastructure. The other fees are comprised of revenue from the delivery of consumer hardware devices and
various other sources.

For an individual ad or user the spending is hard to calculate, let alone relate to. Marketers typically describe
the numbers in terms of CPMs, CPCs, impressions and so on and the prices themselves fluctuate
dramatically, depending on many criteria.

ALPHABET
Revenue can be defined as the amount of money a company receives from its customers in exchange for the
sales of goods or services. Revenue is the top line item on an income statement from which all costs and
expenses are subtracted to arrive at net income.

Google parent company Alphabet warned in last quarter that it was expecting to see the impact of
coronavirus in the second quarter results, and it did: the company saw its first revenue decline in its history.
But it managed to beat Wall Street’s revenue expectations.

Alphabet's main revenue source is advertising through Google sites and online products. The company's
Other Bets segment also includes businesses such as Access/Google Fiber, Calico, Nest, Verily, GV, Google
Capital, X, and other ventures.

Google benefits from a vast audience reach. Google properties revenues include revenue from its search
platform Google.com, as well as revenue from traffic generated by search distribution partners who use
Google.com as their default search in toolbars and browsers. YouTube revenues are also included in this
segment, worldwide net advertising revenues of YouTube were estimated to be 9.13 billion U.S. dollars.
According to Google, YouTube is one of the company’s biggest advertising revenue growth drivers, along
with mobile search.

In 2019, 46 percent of the internet company's revenue was generated in the United States and 31 percent in
the EMEA region.

AMAZON
Amazon.com Inc. (AMZN), the world’s largest online retailer, is growing rapidly in a broad range of
businesses, including its core e-commerce operations, cloud services, digital advertising, groceries, and
prescription drugs. It also sells products such as the Alexa personal assistant and ecosystem, and movies and
television shows through its Amazon Prime Video platform. Amazon's rivals include Walmart Inc. (WMT)
and Alibaba Group Holdings (BABA).

The first two of these segments, North America and International, refer to geographical breakdowns of
Amazon's retail business. They generate revenue from retail sales in North America and the rest of the
world, as well as from subscriptions and export sales for those areas. Retail can further be broken down into
online stores, comprising the bulk of sales, and physical stores.

There is one Amazon segment that has not thrived in recent years: the International business. This segment
consists of Amazon's retail business for consumer products and subscriptions for internationally-focused
online stores. It also includes export sales from those stores, but not those from North America-focused
online stores.
Amazon Web Services provides services to businesses, government agencies and academic institutions to
store information and deliver content. Amazon refers to them as a "broad set of global compute, storage
database, and other service offerings.

AWS is the latest Amazon business to be included in an antitrust probe by the U.S. Federal Trade
Commission (FTC). Amazon's retail segments have also faced heightened regulatory scrutiny, as the FTC
conducts an antitrust investigation into major tech and e-commerce companies, Because of Amazon's
dominance of the cloud market, the FTC investigation seeks to determine whether Amazon is unfairly
favoring software companies that partner with Amazon over those which work with other cloud services.

Amazon also is facing mounting pressure from employees, unions and customers regarding its employment
policies and compensation practices. Traditionally one of the largest shopping days of the year, thousands of
Amazon workers across Europe went on strike to protest unfair working conditions.

One Amazon's biggest recent initiatives has been its expansion into selling advertising, where it competes
with Facebook, Inc. (FB) and Alphabet's Google unit. Through its advertising services, Amazon helps
promote products by third-party partner vendors both within and outside of the Amazon platform. The
company may have an advantage in providing retailers with a substantial return on investment (ROI), as
Amazon's platform is already known to consumers as a hub for shopping. Amazon groups its advertising
sales figures along with other undisclosed service sales in its annual report, making it difficult to assess
advertising growth directly. But this business has been among Amazon's fastest-growing.

Submitted By
Ganeswar Barik
FMS/MBA/19-21/109
Section – B
Sri Sri University