Bad bots, Apple services and Employee leverage

Today’s Topics

Hello, today we have 3 charts for you exploring:

  • Bots: Internet traffic from bad bots has reached record levels
  • Apple: Services revenue from Apple is now larger than many tech giants
  • Revenue per employee: Apple makes $2.5m in revenue per employee, the highest amongst Big Tech

Many of us know that humans are not the only ones using the internet.

But did you know that almost 43% of traffic from the internet is from bots?

The bad news is that 28% is from so called “bad bots” which are computer programs built with the intention of causing harm (like stealing your credit card information, your personal information, malware etc.)

If you are looking for new stock ideas to invest, cybersecurity software industry might be a good place to look.

Some numbers just shock you when you first see them. Like this one!

Apple’s services business now generates $75.1B of revenue per year. That’s 19% of its total revenue of ~$386B in the same time period (last 12 months ending Mar’22)

Apple’s services revenue is higher than the combined revenue of internet giants like Netflix, Paypal, Spotify and EA sports!

The services business mainly consists of the money Apple makes outside its core products (e.g. iPhone, Mac) – such as Music, Apple Store commissions etc.

Apple’s strategy in the coming years is to continue to monetize its huge installed base of customers and it seems to be very successful in doing that.

In 2021, Apple had a revenue of $365.8B and ~154k employees, giving it an avg. revenue per employee of $2.5M/year

Granted that some of these businesses are vastly different and well diversified – Still its still shocking to see that Apple gets so much more revenue out of its employees compared to other companies – even Alphabet (Google) and Meta (Facebook) which are mostly software companies.

A big reason for this, off course, is that Apple outsources the manufacturing of its products (like iPhones, Macs) to 3rd parties in Asia.

Very impressive leverage of its employee base.

More data bites

  1. Young adults in U.S. are much more likely than 50 years ago to be living in a multigenerational household
  2. Europe’s scorching heat wave5 things to know
  3. Comparing endowments of Ivy league colleges
  4. Doordash’s customer loyalty is driving market share gains
  5. Since launching Reels, Instagram’s TikTok clone, engagement on the regular in-feed posts have dropped 44%, according to a study done by Later


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