How Apple, Google, and Amazon Really Make Their Money (And What It Teaches Us)
- 07noahc
- Nov 5
- 2 min read
Think you know how these giants make money?
Most people think Apple = iPhones, Google = Ads, Amazon = Online Shopping. But the real answers are way more strategic — and learning them can change how you look at every business.
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Apple: More Than Just an iPhone
What You Think:
“Apple makes most of its money from selling iPhones.”
The Truth:
You’re partly right — about 50% of Apple’s revenue is still iPhones. But the real shift is happening behind the scenes.
Where the Money Actually Comes From:
• Hardware: iPhones, iPads, Macs — still huge.
• Services: Apple Music, iCloud, App Store fees, Apple TV+, and more.
• Wearables: Apple Watch, AirPods, etc.
The services category is growing fastest. Why? Because subscriptions = recurring cash flow. That’s what Wall Street loves.
Apple’s “Services” revenue is over $80 billion a year — nearly the size of entire companies like Nike or McDonald’s.
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Google: The Ad King of the Internet
What You Think:
“Google is a search engine.”
The Truth:
Google is actually an advertising empire.
Where the Money Comes From:
• Ads on Search: Every time you Google something and click an ad, they get paid.
• YouTube Ads: Monetized videos = billions in revenue.
• Display Ads: Banners on websites all across the internet.
• Google Cloud: Smaller, but growing.
Over 80% of Google’s revenue comes from advertising. That’s why their tools (Gmail, Maps, Docs) are free — the more data and usage, the more they can sell ads.
🔍 You’re not the customer. You’re the product. Advertisers are the customer.
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Amazon: It’s Not Just Prime Boxes
What You Think:
“Amazon makes money from delivering stuff fast.”
The Truth:
Only part of it.
Where the Money Comes From:
Online Store: The classic Amazon shopping experience.
Marketplace Fees: They charge sellers to list and sell products.
Prime Subscriptions: Recurring revenue from 200+ million members.
AWS (Amazon Web Services): Their cloud computing arm — this is HUGE.
AWS alone made over $90 billion in 2024 — and is responsible for most of Amazon’s profit.
That means when you stream Netflix, use Zoom, or browse Reddit… you’re probably using Amazon’s servers without even realizing it.
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Quick Takeaway
Big lesson?
The world’s top companies use diversification and recurring income to build unstoppable machines.
Don’t just sell once. Sell again and again — or power other businesses behind the scenes.
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Real-Life Takeaway
If you’re building a business, selling haircuts, shirts, or tutoring — start thinking like these giants.
Can you add a subscription model?
Can you build something once and get paid over time?
Can you own the platform, not just the product?
Even small businesses can learn from trillion-dollar companies.
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What’s One Business You Love?
What do they really make money from?
Share this with someone who still thinks Apple’s just a phone company.
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