Key Points
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Amazon’s cloud division is crucial for its future success, generating $129 billion in revenue and $46 billion in operating income in Q4 2022.
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Apple’s iPhone revenue grew 23% in Q1 2026, aiding the company’s services division, which saw a 44% revenue increase over three years.
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Amazon’s projected earnings per share growth rate is 18% from 2025 to 2028, surpassing Apple’s expected 11.4% growth rate.
Amazon (NASDAQ: AMZN) shares have surged 629% over the past decade with an average annual return of 22%, while Apple (NASDAQ: AAPL) shares climbed 878% during the same timeframe, reflecting an average annual return of 25.6%. Amazon dominates with about 40% of U.S. online shopping attributed to its marketplace. In contrast, Apple boasts over 2.5 billion active devices worldwide, significantly enhancing its services revenue potential.
As competition intensifies, Amazon’s focus on AI through its Amazon Web Services (AWS) reinforces its strategy, highlighted by its robust $200 billion spending plan aimed at bolstering growth. Meanwhile, Apple’s commitment to product innovation ensures its ongoing market strength, particularly with the enduring popularity of the iPhone, which remains vital in the evolving tech landscape.
