[OC] Apple VS 110 CountriesSubmitted by rubenbmathisen t3_105d4ui in dataisbeautiful
RD__III t1_j3ahdml wrote
Reply to comment by rubenbmathisen in [OC] Apple VS 110 Countries by rubenbmathisen
Market cap isn’t the equivalent of a corporations “GDP”. The appropriate comparison would be to compare gross revenue to GDP.
Eric1491625 t1_j3ajdes wrote
Even that is too much. You need to compare a company's Economic Value Added to GDP, not all revenues.
If a country imports $200 of components to assemble a $300 Apple product it generates only $100 of GDP. But from Apple's perspective, if Apple imports $200 of components to sell a $300 product it generates the full $300 as revenue (but only $100 of EVA, which would be the correct comparison).
RD__III t1_j3ajpnc wrote
An even better point
rubenbmathisen OP t1_j3aliyf wrote
The comparison in the graph simply says that Apple’s market cap is approximately equivalent to the value of what 110 countries produce in a year. Nothing more, nothing less. There are certainly other interesting comparison one could make, but they dont undermine that fact.
RD__III t1_j3anh4a wrote
Yes. I can read English. why do you compare the market cap to GDP. Why don’t you compare the value of what apple produces in a year to these other countries? That would make sense for a comparison. Market Cap to GDP doesn’t make sense.
To better phrase it, a monkey can throw two numbers on a bar chart. What makes your data beautiful compared to a monkeys?
[deleted] t1_j3as4x8 wrote
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commmingtonite t1_j3b22oo wrote
But this is like measuring Engine power to a gas tank
dadarknight07 t1_j3bdfej wrote
That’s just it. It DOESNT show how massive apples market cap is via a comparison for perspective because the comparison is invalid.
It just shows apples market cap and then a separate number next to it. No perspectives obtained from a comparison.
[deleted] t1_j3ckuok wrote
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dadarknight07 t1_j3d897c wrote
Worth (stock) and income (flow) are two different categories of measurement. It doesn’t make sense to compare one of those of one entity with the other of those of an entirely different entity. It’s non sequitur.
Your example is more valid as a comparison as net income and revenue are both in the flow category of measurement.
OPs example is like comparing the total incomes of a neighborhood in LA with the total enterprise value of all the McDonald’s in Ecuador. You can put them next to each other in a chart. But doesn’t really make sense.
[deleted] t1_j3baql4 wrote
Next you might as well compare the number of iPhones manufactured to the GDP of these countries.
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