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How Apple Makes So Much Money
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- Published on Feb 12, 2026
- Today, Apple is the third most valuable company in the world. Generating about 391 billion dollars in fiscal year 2024.
But that’s total revenue. If you subtract their costs like research and development, employee salaries, materials, and manufacturing, Apple is left with 93.7 billion. Which is a 24% profit margin.
But where does all that money come from? Well, the largest and most obvious source is iPhone sales.
The fact that all your recent videos are basically “fuck Apple and here’s why” is both hilarious and awesome. I’m an Apple fan, but keep it up!!
What is a fan?
Being a fan and/or user of Apple doesn’t mean you have to blindly follow their corporate stance.
If you want better products from Apple, you HAVE to come up with criticism about certain things you don’t like about iPhones.
And yes, I’m glad the iPhone has started gaining a lot of customisation options since iOS 16, USB-C and Android-like features (widgets, an app drawer, customisable Control Centre, sideloading and 3rd-party storefronts in the EU, etc.), but I’m also eager to criticise them for their intentionally horrible repair pipeline that wants you to just buy a new phone instead of fixing the old one, the removal of the headphone jack port (still hurts almost a decade later) and the laughing stock that Apple Intelligence is.
@commentarysheep I’m in the same boat. I use Apple stuff but am eager for regulatory pressure to force them to increase the quality of their software
I don’t see that logic at all. Even if you like a company doesn’t mean you like to praise every single thing they do, but you don’t have to have a “fuck Apple” mentality either. That kind of attitude tends to come from those who actually hate Apple and everything they do. That’s not the case here with AE. There are a number of fans, users, etc, of their products and services who are also critical of them too.
This is how you hold companies accountable. I wish people were like this with politics. You can still lean a certain way and still hold people accountable
Apple Explained’s Villain Arc Needs to be Studied
I was thinking the same thing!
Even the most diehard Apple fanboy gets sick of their bullshit eventually.
I was a bit of a fanboy years ago. But then Apple got more and more greedy. And the quality of their software went down the drain.
It Starts after Steve Jobs died released Iphone before Sd card supports but apple mobile never exist support external storage data long user terms own
@Dr904 That's so true. Today iOS is more buggy than Android on Pixels and even Samsung Galaxys. Hope they'll address this with iOS26.
@Dr904 same here sadly, I've moved to Pixel now
You forgot $20 billion of payments from google, a 100% margin deal
I think this vdo about apple earn by their products not search engine fee deal from Google
@ChanpisethCHEA is the word VIDEO too many characters for your attention deficit drug addled brain to type?.. F U
@ChanpisethCHEA nah the deal is also part of their revenue and definitely part of their profit
@ChanpisethCHEA without the deal apple's $93 billion profit would've only been $73 billion so the deal definitely made a significant contribution to apple's over all profit and is way larger than almost 90% of every existing companies in the world by itself alone
Yeah, it shows how Apple doesn't actually care about your privacy, it only wants to look like they do. Still better than Android tho
Did he have a fight with his cat before doing this video
😭😭💀💀
No, he just can’t afford better clothes because Apple products became too expensive …
😂😂😂tbh I didn’t even notice it until I saw your comment)))
Creating a problem and selling the solution.
Even if that were true, it’s brilliant. It’s a common business strategy. You’d do it too if you had a business.
Every business in a nutshell
@dipe6376exactly!
this camera quality is insane! keep up the good work :) been watching since before the villain arc, and fully support this evolution
Apple also makes money selling to consumers by charging RIDICULOUS prices for RAM and Storage upgrades.
$200 for 256GB is criminal
@Techtinkerer3DAnd no SDs too, the only way around it is cloud storage…or an external SSD or personal cloud storage device
Hey love the Splatoon t-shirt 🦑
Also, great to see you having a more by nuances approach on Apple nowadays, they make a lof of great products and services, but it's important we notice and point out their failures as well.
Talk about a great channel, this is where its at, thanks to this channel and i enjoy all of this
iPhones and subscriptions I assume
I have a video idea if ever you haven’t talked about it yet:
Why the Apple Watch Ultra is not part of the Apple Watch Studio.
The answer may already sound obvious but I thought it’d be nice to talk about for a bit.
Whatis the Apple Watch Studio?
@CatholicClippy It’s a page on Apple’s website where you can customize your Apple Watch of choice, like bands, case sizes and finishes. There are three types of Apple Watch you can choose there: SE, Series 10 and Hermès.
@CatholicClippyI guess it's where you can customize the watch before you order it but idk
@CatholicClippyjust a webpage that lets you customise an Apple watch, like choosing the band design.
@CatholicClippy It's an in-store apple watch customization thing, you can pick your own case, band etc. I think it's available online too, not sure.
I loved how he explained so clearly.❤
splatoon shirt?
Thank god im not the only one that noticed also marie pfp!!
you're trully a dedicated person. thx for these videos
one word: *consumerism*
It’s a good video on Apple Evolution.
You should bring back the theme you used for your videos.
what do you mean by "viable"? Please explain
also what about that shirt??
i hate how everything is a subscription service these days
Thank you good information. Love your t-shirt
Apple: Lets make expensive hardware and subscriptions!
Awesome video but I do miss your iconic theme tune ☺️
I appreciate your integrity and being honest and transparent about some of their more predatory practices.
Apple Explain is leveled up ❤️ Love it❤️❤️
I would think subscription is where most of the money is generated… it’s basically printing money.
Make a video on the life arc of subscriptions. Initial enthusiasm, use them while in doubt, the realisation of being ripped of and the cancellation of those not used, the final achievement of freedom and the cancellation of all subscriptions, start of collecting LP, DVD and the switch to a monochrome laser printer...
Great video
Actually, you can still buy Apple products from third parties. While I imagine that most Apple sales occur at Apple Stores including their online store, their are still third party sellers like Best Buy and Walmart and even a few remaining independent retailers. Sure the independent Mac retailers market isn’t what it was in the 80s and 90s but it’s not nothing.
Looking good, Greg! Keep up the good work!
😂
Apple’s strategy to raise share prices is slowly shifting to stock buybacks too.
How much Huawei makes? And Xiaomi?
all that money goes where? 😂 They can't even fix siri and "aPLle iNtelLiGenCe"
They're actually facing a lawsuit because they straight up lied and announced AI features that they weren't even working on at the time and just hoped that they could have up and running by the time the iPhone 16 was released.
"Apple Intelligence" and its dumber than a 12 year old
Setting up Stores and looking after customers is what really cemented Apple as the consumer choice.
Yes the hardware also had to be great but the peace of mind from knowing they will resolve your issue if something goes wrong ( eg they often replace devices if needed) keeps customers coming back for other products.
The pc industry is notorious for junk quality and zero support. Same with Android phones. Apple stands for quality and support.
Apple had superior support BEFORE having a large retail presence.
just fix it yourself it's that easy
Nice
Great video!
where’s the “fuck apple” moment here? i fail to see it
I hate vendor lock-in. I always have.
However, I have to take exception to the proposition that Apple’s growing service fees are somehow uncommon.
As a subscriber to Netflix, Amazon Prime, and RUclips TV, I can assure you that this is an industry-standard practice.
and still they do cheap tactics like placing 60hz screen and reducing the refresh rate to 80hz in the 120hz iphones
Charge more, give less. Don't fix broken stuff.
The video wnd sudio isnt synced
After getting the All Metal 2007 iMac in 2008, the next major Tech Purchase I made was an iPod Classic. I was using a Zune at the time and it felt it was a requirement to get an iPod, if I had an iMac so the Apple Ecosystem was a thing even in the 2000's. 😅
Your shirt is ripped.
I was like "is it just me or his shirt is..."
It’s probably a “style”. I’ve seen designer gods that are ripped like that new, no idea why people would want that look 😅
His shirt is the tri shred tee from the game splatoon 3, its supposed to be ripped
Doubt he cares
@goldenhawk9322yeah, but my eyes...😢
really cool
Nobody should feel “ locked” in to a better experience they wanted. You can leave at anytime and you know what you’re buying before you leave the store 😂😂😂
The simple answer is they sell overpriced products and charge $200 for just a RAM or storage upgrade.
This video was already made 4 years ago, 2021.
Apple makes $20 billion a year from Google by making its search engine default. This is almost a fifth of their profit. I might have been worth mentioning.
Bro everything okay, what happened to your shirt ❤
Dayum thanks man
wow ive been subbed since 30k and its a shock to not hear that music, and see your face now
He showed his face starTing more than awhile ago
You look really tall. Can I ask how tall you are? -don from Lorain Ohio USA 🇺🇸
24% profit margin is one of the highest in the industry. They get their money by overcharging for their products, while making them as cheap as possible.
I don’t pay for Apple Music. I buy an album or songs from iTunes and download it onto my devices.
And if I can find a CD I buy that and rip it.
I don’t really use any of Apples subscription services, unless they are on sale or free which is almost all the time.
Me neither, I was offered free services when I bought a new iphone 16 pro from the apple store.
Apple Explained went from apple fanboy to now massive apple hater. This arc is getting me excited
man fought with his cat before coming on air
If there computers were priced realistically I wonder how much more they'd make
@AppleExplained i hope you bring back the relaxing background music because it makes your videos even more better because it suits your voice i hope you'll notice it
The “made from bones” is probably marketing. It’s similar to “bath salts” (synthetic cannabinols) which were popular in the West a few years ago, imported from China (same source as most fentanyl).
I'm curious what percentage of Apple service revenue is directly tied to their device sales vs platform agnostic. My understanding is that Apple Music can be played on Android and Windows devices so if there was a slump in Apple hardware sales it wouldn't directly effect Apple Music revenue. However services tied to Apple devices would be adversely effected if for some reason there was a slump in hardware sales.
Ok ok but happened to your t-shirt?
did you buy your t-shirt like that? serious question. is that a fashion thing now, or is it just your favourite t-shirt. i remember when people where buying ripped jeans, but they don't last ofc
edit: very interesting video, you do some dedicated research and present it well, thanks for the insights bro
According to the guy from „Daring Fireball“ and Nilay Patel from the Verge, Apple services are mostly the apple tax from in app purchases. I.e Those in app transactions like buying perks on candy crush. With the recent loss in the court for Apple, expect less income from the services department.
Damn the marks of apple trying to cut your throat are very visible, luckily your shirt saved you 😂
I want that shirt ❤
Can’t stop but keep staring at the holes in the collar of his shirt
apple sunglasses is gonna be a huge hit in california.
i can't understand why the next step up from 200 GB in iCloud storage is 2 "TB" for £8.99 a month. i remember just a few years ago that I was subscribed to iCloud 500 "GB" for £1.99. Problem is, that's still the same amount of sync'd storage that i use, but there's no option for that. I was told to either upgrade or lose a lot of offloaded photos and videos.
it's like i'm forced to pay for extra storage that i don't need or f around a lot to get it back down to 200GB (i'm just shy of 300GB). that step up should be illegal - 200GB to 2TB, wtf
is apple acquiring perplexity ?
@Apple can you explaine, Apple Explained?
Their biggest money maker is G&S (glue and soldering)
I have only ever bought music, never streamed anything.
Makes perfect sense, think of the car industry. The whole industry isn't about the car itself but about the resources you constantly pay for the vehicle, fuel, insurance, constant replacement of the battery, head lights, brake pads, windscreen wipers etc. The car is just a tool to get you to spend elsewhere.
Indeed. And then there’s the culture side of it - accessories, mods, racing, clubs, nostalgia….. There’s a little bit for everyone. 💰
@housepianist I know and the sad part is think of all the industries that sell you something that requires something else or multiple something else's just to use it, it keeps people poor and these companies continue to milk your wallet.
I think Services also include App Store though. Apple TV+ is not profitable.
Apple is making way too much money so let's switch to other companies haha
Thats very ironic and hilarious coming from Tim Cook when he is now the exact opposite of Steve Jobs.
Anyone gonna talk about the holes in the shirt?
the shirt looks like the same one as Bill Belichick's. i wonder if he's also dating a 19 year old girl
@johansjournalew
Why do they have to make a pink phone, now I have to buy it 😤
6:29 is it me or is something about this image bothering me
yes. his face is brown but his hand is white from holding an iPhone. The iPhone is infact slowly granting him human rights
@admiraljamster well, im not trying to make it about race. im just aasking if this is his skin condition cuz im actually worried about it.
@adorableredfoxthe guy in the picture has vitiligo, which is a skin condition that causes the melanin in your skin to die and causes your skin color to turn white
@sprakgzilla thank you
@adorableredfoxanytime😊
by making prices high even with 60hz display 😅 that’s how apple making this much profit
Iphone also kinda subscription since we pay in 12 or 24 month installment
Not really. Plenty of folks can just buy it outright. Plus that's not a subscription. The fact that you can pay and just own means it's bt really a subscription.
What a good video. Watched the whole thing in a sitting. 🐐
Gonna be a Linux fan fast and soon. 😂
I think the majority of their wealth comes from developers using the App store
🎉
Some corrections: I could purchase music via iTunes and transfer it to my sony nw e 99 back in 2005. The world didn’t start in 2007. We lived im a very technologically advanced world back then as well. We only experienced evolution since then, not revolution.
Holy shirt
Premiums royalties and subscriptions
Are you waiting for YT to send you a payment so you can wear a decent shirt?
apple is first
Is there a Samsung Explained guys?
What happened to your t-shirt?
❤❤❤
Because they can make $100billion revenue doing something outright illegal knowing the resulting fines and civil suits will equate to only $100million.
Because their products are expensive. There. Saved you 11 minutes. Good video though!
his shirt looks like the same one as Bill Belichick's... i wonder if he's also dating a 19 year old girl lmao
I think the distressed look suits you
I’m going in my new penthouse apartment saying proper because I have to speak proper to my neighbors and the concierge and the desk clerk, so the only way for you to even enter the building for your new penthouse apartment is to say proper when you speak to the realtor, you have to speak proper the only way to live decently is to say proper Your level of proper is going to be defining factor on you achieving it
what's wrong with his shirt? is that a fashion trend these days?
its official merchandise from the game splatoon 3 which takes place in this grungy city in the desert, so it fits the theme of the game to have the clothing be ripped and distressed
@ChillyHippo41 thank you for the thorough and patient explanation!
"By selling iPhones"
video over
Too simplistic!
i was gonna say “consumerism”