There are sure images we eat of tech companies, and of the commerce they’re in. besides during there are often surprises when you description at their bottom rank — products that can watch similar a negligible sideline truly contribute significantly ought their profits. These lesser-known products and divisions can significantly shock the operation of tech stocks.
One example is Logitech (NASDAQ:LOGI). throng learn the corporation because a manufacturer of private computer accessories, such because mice and keyboards. besides during those accessories aren’t the only commerce driving the company’s growth — up 170% because 2016.
Logitech too owns brands mutual with music-loving consumers, a “sideline” that’s helped it receive benefit of the raise at streaming music. This “sideline” includes one of the most mutual portable Bluetooth Speaker brands: final Ears. And at 2016, Logitech bought main wireless earbud brand Jaybird.
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In 2019, portable speakers, earbuds and audio gear brought at more than $500 million, above 18% of LOGI’s sum annual revenue.
Here are three other tech stocks that create money at a surprising way.
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Ask the median person how Amazon (NASDAQ:AMZN) makes money and the reply will likely exist online retail sales. They can description approximately their alive room and add Alexa-powered Echo smart speakers ought the mix.
smart speaker type that’s been rapidly growing though little years, Amazon’s Echo still holds a commanding 70% direct at U.S. homes.' data-reactid="36">There’s no controversy that Amazon.com generates a ton of revenue. Online sales though the e-commerce colossal overthrow $141.3 billion at 2019. And at a smart speaker type that’s been rapidly growing though little years, Amazon’s Echo still holds a commanding 70% direct at U.S. homes.
But it’s a behind-the-scenes division that truly accounts though the lion’s division of Amazon profits. Amazon Web Services (AWS) is a cloud computing enterprise that provides the processing and hosting capabilities that create Amazon.com and Alexa hum. It powers some of the world’s most mutual apps, websites and services, including Netflix (NASDAQ:NFLX).
AWS has too convert a headmaster driver of Amazon stock, generating above 70% of the company’s sum profits.
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HP (NYSE:HPQ) was created at 2015 when Hewlett Packard tear into two companies. HP focuses chiefly above computer and printer sales. at 2019, it was the world’s second-largest PC vendor, with 23.9% of the global market.
However, the great benefit driver though HP isn’t computers. It’s no printers, which are often sold at charge or flat a loss. It’s high-margin printer ink.
Computers can fetch at the revenue, besides during printing (and chiefly replacement ink cartridges) eat been accounting though 80% of HPQ’s profits.
With that benefit race below pressure, HP has been fighting ought hinder the avail of third-party replacement cartridges. It’s too reportedly considering increasing the price of the printers themselves.
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Everyone knows the iPhone is Apple’s (NASDAQ:AAPL) great revenue and benefit machine, flat if it has been running out of steam lately. Slumping smartphone sales eat been a commerce though many tech stocks at modern years.
Apple has other manufacture lines ought raise revenue, including the Apple Watch, and services similar Apple Music.
What you can no effect is how great a commerce AirPods eat convert though the company. The white wireless earbuds with the weird stem eat convert an incredibly mutual accessory. With multiple generations including the latest AirPods Pro above the market, Apple is projected ought sell 85 million pairs at 2020. That’s approximately $15 billion at revenue.
One analyst did the math and calculated that if AAPL spun off AirPods into their get business, the resulting corporation could eat a $175 billion valuation. It used to exist one of America’s top-value companies, claiming a spot approximately No. 30.
That’s no evil though a “sideline” that was mocked above release.
Brad Moon has been writing though InvestorPlace.com since 2012. He too writes approximately stocks though Kiplinger and has been a senior contributor focusing above consumer technique though Forbes because 2015. As of this writing, Brad Moon did no contain a spot at any of the aforementioned securities.
The mail The Surprising Ways These 3 Tech Stocks create money appeared first above InvestorPlace.
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