Technology and the internet have experienced huge growth over the past two decades. This has enabled new products based on technology to be created, increasing the number of people who use the internet and technology. Technology's rapid growth over the past few years is nothing short of revolutionary. Technology has revolutionized not only the way we live but also the way we do business.
Tech startups were able to easily launch their products thanks to technology.
These tech-based businesses have seen rapid growth, which has resulted in them generating more revenue and customers than non-tech businesses. Although the technology was still in its early stages, many companies came up with tech products.
However, the competition has become more fierce, and only a handful of companies have succeeded. Apple Inc. is an example of such a company. Although Apple Inc. was founded 44 years ago by Wozniak and Steve Jobs, it is still considered the best and most profitable company.
Apple has been creating products that are more user-friendly, simpler, and different from its competitors since its inception. This has helped it attract a lot of customers. Apple has had its ups and downs, but the company has maintained its quality standards and has been largely profitable over the last few years. Apple currently has 27 products, more than 500 stores around the globe, and the largest user base.
Apple has gradually risen through the Fortune 500 business ranks in recent years. The Fortune worldwide magazine just revised its Fortune 500 rankings, and Apple, which was formerly the third most lucrative business, is now at the top. Apple is also now sixth on the list of companies with the highest revenue.
Apple earned a total profit in 2020 of 57 billion dollars, putting it at the top of the fortune 500. This spot was previously held by Saudi Aramco. The COVID 19 pandemic, which exploded Apple's sales, is a major reason why Apple ranked number one. Apple CEO Tim Cook stated that while the pandemic presented many challenges and opportunities for the company, its large customer base and the introduction of online learning/work increased sales.
Top Profitable companies of 2021
Let's take a look at this list to see which 5 companies are the most profitable in the world.
Two things are important when discussing the largest companies in the world: revenue and profit. If we consider both, we can find a profit margin that is crucial for any business's long-term success. While I don't believe that all businesses will have the same margins, it is worth noting that companies with the highest margins in their sector are definitely worth your attention.
1. Saudi Aramco
Industry: Refining and oil and gas production
Products: Oil, natural gas, and other petrochemicals.
Saudi Aramco, the Saudi Arabian Oil Company, was established after the successful issuance of shares on the stock market. The most expensive company in the entire world has published its financial statements for 2019. It published its 2019 financial statements for the first time. The company's value nearly reached 1.9 trillion dollars shortly after it was listed on the Tadawul Stock Exchange.
With the issuance of shares, the oil giant has exceeded all expectations: it is one of the most successful IPOs in history. According to them, Saudi Aramco will use most of the profits for mergers, acquisitions, and expansion of its global influence. The company plans to be a global leader in the production and distribution of liquefied natural gases.
Saudi Aramco is today a leader in oil production and has the largest reserves. SA already has subsidiaries and branches in China, Japan and Russia. The company collaborates with Lukoil and Royal Dutch Shell, Total SA, and Sinopec, among others. The Saudi Arabian government now owns the company. The main office is in Dhahran.
2. Apple Inc.
Industry: Electronics, Information Technology
Products: Tablets and personal computers, mobile phones, audio devices...
Apple was, for a long time, the most valuable company on the planet. It lost its position due to disappointing iPhone sales and pandemic. But the company is regaining its position. Apple currently ranks second in market capitalization.
At the same time, the firm remains at the top of the list of the most costly brands. Many people recognize the company's logo today, as Apple has become the most successful brand. Experts from rating agencies have estimated its value at $2,213 trillion. The firm was started on April 1, 1976, by Steve Wozniak, Steve Jobs, and Ronald Wayne.
Industry: software development.
Products: Microsoft Office, Microsoft Windows, Xbox, etc.
Microsoft is the world's third most valuable business. The company's creator, Bill Gates, is well-known across the world. He is currently one of the wealthiest men in the world. Microsoft was the first software company to suggest using packaged software on home computers. This would make the PC user experience more intuitive and user-friendly.
The Microsoft Windows operating system was revolutionary because it made it possible for ordinary users to learn how to use computers. This system was a huge success for the company and generated enormous profits. Microsoft is a leader in the PC software market. Microsoft releases the latest Windows operating systems.
It also offers a suite of software applications called Microsoft Office that can be used to create and edit documents. Microsoft also produces its own accessories, video, audio, and office equipment, as well as mobile devices. The headquarters of the company is located in Redmond, Washington, USA.
4. Amazon Inc.
Industry: Retail business.
January 7, 2019, Amazon was the most expensive company on the planet. It has now surpassed its rival, Microsoft, for the first-ever time. It is now ranked fourth on the list of most valuable companies.
Amazon, an American retailer, sells and delivers goods via the internet. Amazon.com is an online marketplace that allows users to sell their goods directly to suppliers and producers.
The main business of the company is to sell various products. The service has enjoyed huge popularity thanks to its high-quality products, low prices, and prompt delivery.
Jeff Bezos founded the company in 1994. Amazon's headquarters are located in Seattle, Washington, USA.
The company has approximately 647,500 employees and more than $162 billion in assets. Its annual turnover is approximately $232 billion.
5. Delta Electronics (Thailand)
Industry: Automation and electronic systems.
Delta Electronics (Thailand), Public Company Limited, is a subsidiary of Delta Electronics Inc. It is a manufacturer of electronic products, including power supplies, industrial automation systems, and infrastructure for alternative energy, electric transport, and many other things.
The parent company was established in 1971, and a regional office was opened in Thailand in 1988. The subsidiary is now the most valuable company in the world in terms of market capitalization. Currently, Mr. Chang Tsai Hsieh (Jackie) is the president of the Thai company.
The profitability of a company/ organization is dependant on numerous factors like:
- Market demand
- Growth per capita
- Individual stock value, etc.
In the world of finance no one is safe from economic backlashes but, some companies will always be there who can turn their fortunes around in a jiffy. So, if you want to invest in any one of the above-listed companies then, be sure of one thing. Gain or Loss is all part of the process. What matters is how much you are willing to sacrifice and how patient you are.