Apple achieves strong revenue per employee in tech comparison Apfelpatient

Apple is one of the world's strongest brands, achieving record sales year after year. A striking metric is revenue per employee, which reflects a company's efficiency. Apple's figure is surprisingly high, but compared directly with other tech giants, it's not enough for the top spot. A recent report from OnDeck provides the relevant data and contextualizes Apple's ranking and explains the reasons behind its position.

Revenue per employee, often called RPE, serves as a simple metric for companies to assess the productivity of their workforce. It is calculated by dividing a year's total revenue by the number of employees. However, RPE can only reflect part of the reality. Factors such as company culture, long-term investments, and intangible assets are not taken into account. Nevertheless, the metric provides a clear indication of how much economic value is generated per employee. Apple shows strong figures here, but doesn't quite reach the top of the ranking of tech giants.

Apple and revenue per employee

Apple generates $2,413,171 in revenue per employee. This is an impressive figure that clearly demonstrates the company's economic power. However, in the ranking of major tech companies, Apple only comes in third place. Analysis by OnDeck shows that Nvidia and Netflix achieve higher figures.

Rankings of tech companies

Nvidia earns $4,408,784 per employee
Netflix pays $4,153,125 per employee
Apple with $2,413,171 per employee

The major difference stems from the company structure. Apple employs approximately 164,000 people worldwide. This includes not only developers and designers, but also numerous retail employees in Apple Stores. Companies like Nvidia and Netflix have significantly leaner workforces. Their structures are primarily based on specialized roles with high revenue per employee. This directly translates into higher RPE values.

Limitations of the RPE metric

Although RPE is a common metric, it remains incomplete. It measures efficiency but ignores the qualitative aspects of a company. These include corporate culture, brand value, customer loyalty, and long-term strategic advantages. Apple, for example, benefits greatly from its own retail presence. These employees contribute to service quality and brand impact but lower the RPE score. Therefore, the metric provides insight into efficiency but not into the overall success of the company.

Cross-industry leader

Across all industries, the real estate company VICI Properties ranks first in revenue per employee. VICI primarily operates as a landlord. Its properties are mainly located along the Las Vegas Strip and are leased to casinos and hotels. The tenants are responsible for the operation, furnishing, and maintenance of the properties. This keeps VICI's costs low. At the same time, long-term leases ensure stable and high income. This combination results in a very high RPE (Revenue Percentage) that surpasses even the most successful tech companies.

Why Apple only ranks third despite strong numbers

Apple achieves a strong metric of over $2.4 million per employee, but ranks behind Nvidia and Netflix in the tech rankings. This is due to its broader workforce, encompassing retail, development, manufacturing, and administration. This demonstrates that while RPE is a useful indicator, it doesn't represent a company's full economic strength. Apple pursues a business model that relies on direct customer contact and a strong brand presence. While this strategy reduces revenue per employee, it is crucial to Apple's market position and long-term success. (Image: Shutterstock / iwonder TV)