If you’ve wondered how Apple managed to put $50-billion in the bank in recent years, look at the simple math. Philip Elmer-DeWitt in Fortune on How Apple’s revenues grow nearly 3 times faster than its expenses. The chart says it all.
It shows that since the platform achieved a major milestone with the 2003 launch of the iTunes music store. Apple’s revenues have grown nearly three times faster than its operating expenses. The bang it gets for its R&D expenses is even more striking. By leveraging third-party developers and content providers as a source of value for its software ecosystem, it’s been able grow revenues seven times faster than operating system R&D costs.
Keep expenses down. Grow revenue. Repeat.