Analysis

This Is How Amazon, Apple, Facebook, Google And Microsoft Make Money

In one way or the other, most of us are directly, or indirectly, linked with – and employing services/products of – Amazon, Apple, Facebook, Google and Microsoft. Whether it is about searching something on Google or browsing the social profiles on Facebook through an Apple iPhone, we are all connected with the giant tech companies.

When it comes to app distribution, artificial intelligence, advertising, cloud computing, laptops, online shopping, smartphones, streaming music and video or voice assistants, it is in some way connected and runs via oligopoly. Goes without saying that the aforementioned tech companies have also bought plenty of startups and it is almost impossible to keep a track of all of them.

Quick Read: Middle East e-commerce giant Souq acquired by Amazon for $650 million

All the tech giants create amazing products. However, it is almost improbable to deny the very fact that they control how tech money flows in the market.

How do these companies make money?

Well, it varies! Nonetheless, all of them make incredible sum of money. The recent chart from Visual Capitalist indicates that all five tech monsters hold their kingdoms on the back of dissimilar industries.

The parent company of Google, Alphabet Inc. is an online advertising company which makes 88% of the revenue through advertising. So is Facebook as it makes 97% of the money through advertising. On the other hand, Apple is a hardware firm which makes 63% of the revenue through iPhone; while Amazon is all about e-commerce business as 72% of the income is generated through products.

Also Read: Ad revenue – Soon to emerge as the only form of Facebook business model

Still the dominant trouper in PCs, Microsoft is the only tech firm among the 5 companies with different sources of revenue. It has Windows in its kitty. However, with the decline of PC market lately, the company is still doing wonders from the Azure cloud business, Office, Xbox, Ads and number of other businesses.

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