Tag Archives: AMAZON

How Apple, Google, Microsoft make money

Whenever we talk about the biggest technology companies in the world, some of the names that almost always come up are Apple, Alphabet (parent of Google), Microsoft, Amazon and Facebook. All of these tech giants have revenues running into billions of dollars, which they earn through different digital products and services. Ever wondered how much these companies’ biggest products contribute to their total revenue?

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The major part of Apple’s revenues, according to the Visual Capitalists report, comes from the iPhone. While the iPhone contributes 63% to Apple’s revenues, the iPad and iMac bring 10% and 11% of revenue respectively. Other products such as accessories and more bring 5% revenue, while services such as iCloud, Apple Music, iTunes and more generate 11% of the total revenue.

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The Redmond-based technology corporation has the most evenly distributed revenue table. Microsoft Office generates 28% of the company’s revenue, followed by Windows Server & Windows Azure, which bring in 22% revenue. The Xbox division, Windows OS, Bing & other advertising, as well as the Surface division generate 11%, 9%, 7% and 5% revenue respectively. The remaining 18% is classified as ‘Other’.

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The parent company of Google, Alphabet gets majority of its revenue (88%) from advertising using Google AdWords and YouTube. Google Play services and Pixel products bring in 11% of the revenue share. Other subsidiaries like Nest, Verily, Google Fiber and more generate 1% of the total revenue, says Visual Capitalists report.

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Social media giant Facebook, as expected, generates its massive revenue from Facebook Ads. This division alone contributes up to 97% of the company’s total revenue. Remaining 3% is classified under ‘Others’ by the report.

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Amazon, the world’s largest e-commerce company, gets majority (72%) of its revenue from the online shopping business. Amazon Prime and other media services bring in 18% of the total revenue, followed by Amazon Web Services that contributes 9% of total share. 1% is generated by the ‘Others’ segment, according to Visual Capitalists report.

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India’s Flipkart raises $1.4 billion in high stakes battle with Amazon

India’s top e-commerce firm Flipkart has raised $1.4 billion in its biggest fundraising to date as it takes on U.S. tech giant Amazon.com Inc for a larger share of the country’s burgeoning online retail market.

Tencent Holdings Ltd, Microsoft Corp and eBay Inc participated in the funding round, Flipkart said in a statement on Monday, which will value the Indian company at $11.6 billion.

That is lower than the $15 billion valuation it achieved at its last fundraising in 2015, reflecting how competition has intensified. India is the world’s fastest-growing internet services market as a rising middle class increasingly shops online.

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Source-Google

Amazon announced last year it would invest over $5 billion in India, and has recently expanded into online video and grocery shopping in the country.

The fundraising also comes amid speculation Flipkart may be interested in a takeover of smaller rival Snapdeal. Local media have reported SoftBank Group is keen to sell its stake in Snapdeal, India’s third-biggest e-commerce player, in exchange for a stake in Flipkart.

“We are delighted that Tencent, eBay and Microsoft – all innovation powerhouses – have chosen to partner with us on their India journey,” Flipkart’s founders Sachin Bansal and Binny Bansal said in a statement.

“This deal reaffirms our resolve to hasten the transformation of commerce in India through technology.”

As part of the fundraising, eBay invested $500 million in Flipkart for a stake, according to a separate statement by both companies. In exchange, eBay will merge its India operations with Flipkart.

The companies did not disclose the amounts invested by Microsoft and Tencent.

Prior to the latest round, Flipkart had raised more than $3 billion in funding via 10 rounds, mostly from international investors.

Sachin Bansal and Binny Bansal, two former Amazon employees, launched Flipkart in 2007 and the company’s biggest investor is U.S. hedge fund Tiger Global. Others include Accel Partners and Naspers Group.

Source – Reuters

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The story of Amazon from ‘Nothing’ to ‘second richest man in the world’

About Amazon

This startup story features Jeffrey P. Bezos, the innovative founder of Amazon. The company, which now generates over $61 Billion in Revenue and holds the title as the world’s largest  online retailer, was started out of Bezos’s garage at 30 years old.

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Source-Google

Amazon Milestones:

1994: Jeff Bezos quits his job and launches Amazon out of his garage.
Within 30 Days, it is doing $20,000 per week in sales.

1995: Bezos raises an $8 Million round of funding from Kleiner Perkins.

1997: Amazon goes public at $18 per share.

1999: Bezos is named Time Magazine’s “Person of the Year” for popularizing online shopping.

2009: Bezos acquires Tony Tsieh’s Zappos through a stock swap.

2013: Bezos acquires the Washington Post.

How Amazon Got Started

The year was 1994 and Bezos was working diligently on Wall Street. At 30 years old, he began to see the internet revolution take place, and made the decision to quit his job and start an internet company.

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Source-Google

After making a list of the ‘top 20′ products that he could potentially sell on the internet, he decided on books because of their low cost and universal demand. It turns out, it was just the beginning.

The Founder’s Start

As a child, he spent summers at his grandfather’s ranch in southern Texas, “laying pipe, vaccinating cattle and fixing windmills”. The 18-year-old Bezos “said he wanted to build space hotels, amusement parks and colonies for 2 million or 3 million people who would be in orbit. ‘The whole idea is to preserve the earth’.

Amazon’s Initial Funding

The initial startup capital came from his parent’s personal savings.The first initial start-up capital for Amazon.com came primarily from his parents, and they invested a large fraction of their life savings in what became Amazon.com. And you know, that was a very bold and trusting thing for them to do because they didn’t know. His dad’s first question was, “What’s the Internet?” Okay. So he wasn’t making a bet on this company or this concept. He was making a bet on his son. So, he told them that there is a 70 percent chance that they would lose their whole investment, which was a few hundred thousand dollars, and they did it anyway.

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Source-Google

Investments

Amazon raised a series A of $8M from Kleiner Perkins Caufield & Byers in 1995. In 1997, Amazon went public to raise additional capital. By 1999, the value of the Kleiner Perkins Caufield & Byers investment in Amazon created returns of over 55,000%.

Years to profitability

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Source-Google

Within two months, Amazon’s sales were up to $20,000/week. However, the company has continued to plow their revenue back into growth. The chart below depicts Amazon’s continued focus on long-term growth, with profit remaining near $0 or below, and revenue rising like endlessly.

Second Richest Person in the world

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Source-Google

CEO of Amazon, Jeff Bezos has now become the second richest person in the world. Bezos has beaten Amancio Ortega and Warren Buffett to the second position following CEO of Microsoft, Bill Gates who holds the number one position.

Companies that Amazon Has Acquired

Amazon has made over 44 notable company acquisitions over the years. It’s first Acquisition was in 1998.

  • 1998: PlanetAll, Junglee, Bookpages.co.uk (later became Amazon UK).
  • 1999: Internet Movie Database (IMDb), Alexa, Accept.com, and Exchange.com
  • 2003: CDNow (Defunct)
  • 2004: Joyo.com, an e-commerce site in China.
  • 2005: BookSurge, Mobipocket.com, and CreateSpace.com.
  • 2006: Shopbop, a women’s luxury retailer.
  • 2007: DPReview.com and Brilliance Audio.
  • 2008: Audible.com, Fabric.com, Box Office Mojo, AbeBooks, Shelfari, and Reflexive Entertainment.
  • 2009: Zappos,  Lexcycle, SnapTell,  Stanza (Kindle Rival).
  • 2010: Touchco., Woot, Quidsi, BuyVIP, and Amie Street.
  • 2010: Toby Press
  • 2011: LoveFilm, The Book Depository, Pushbutton, and Yap
  • 2012: Kiva Systems, Teachstreet, and Evi
  • 2013: IVONA Software, GoodReads, and Liquavista
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Source-Google

Amazon Statistics:

  • Annual Revenue: $61.09 Billion
  • Number of Employees: 97,000
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Source-Google

Amazon has become the topmost and biggest company in the world.

 

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