Apple beats Saudi Aramco to become the world's most profitable company
Apple recorded an increase in its total profit, and with this, it has become the most profitable company in the world. Based on Fortune Global 500 list for the 2020 fiscal year, the iPhone maker’s revenue increased 3.9 percent, which is equivalent to $57.41 billion.
All in all, the companies in Fortune’s list generated total revenues that are more than one-third of the world's gross domestic product (GDP) at around $31.7 trillion. Then again, the combined total amount was said to be lower by five percent compared to last year’s record of $33.3 trillion.
Fortune stated that this is the first decline in five years. It pointed to the COVID-19 pandemic as the main reason for the decrease as the global lockdowns sent economies worldwide spiraling down.
In any case, Fox Business noted that with Apple’s 3.9 percent increase, it has surpassed Walmart and Amazon’s record to be the most profitable business in the world. Moreover, the American tech company displaced the oil giant Saudi Aramco, which held the title for the past two years.
Apparently, Apple continues to move up in the rankings, and now it made its way to the top in the global 500 largest companies. The Tim Cook-led tech firm was in third place last year and also placed sixth based on total revenue now.
Apple secured the top spot in terms of profitability for 2020, but in terms of revenue, the U.S. retailer, Walmart, emerged as the no. 1 on the list that ranks the top 500 companies in the world. The ranking is determined based on revenue. The next top 9 in this category as per Fortune include State Grid, Amazon, China National Petroleum, Sinopec Group, Apple, CVS Health, UnitedHealth Group, Toyota Motor, and Volkswagen.
“The pandemic created challenges and opportunities for Apple. CEO Tim Cook had to close stores and send home engineers but with Apple customers worldwide working and learning from home, iPad and Macintosh computer sales skyrocketed to their highest levels ever,” Fortune wrote. “And fiscal-year revenue hit an all-time record too, of $275 billion, that helped Apple’s stock price soar; it gained 80.7% in 2020.