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More Revenue Than Adobe, Nvidia, or AMD — and as Much as Spotify, Twitter, Snap, and Shopify Combined

Kevin Rooke:

Imagine a startup with $12 billion of revenue, 125%+ YoY revenue growth (two years in a row), and Apple-esque gross margins (30-50%). Without knowing anything else about the business, what would you value it at? $50 billion? $100 billion? More?

That’s Apple’s AirPods business, the fastest-growing segment of the world’s most valuable company.

Keep in mind, though, that Apple hasn’t had a new hit product since the iPad in 2010.

Update: Important follow-up from Neil Cybart.

Tuesday, 7 January 2020