1 Secret to Finding the Next Apple That Is Hiding in Plain Sight

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iPad, and iPhone. Without a time machine, the only option investors have today is to find the next Apple.This can be achieved by analyzing the characteristics that have made Apple so successful over the last two decades. Innovative products are a big part of that story. But there's a secret ingredient hiding in plain sight that is responsible for the company's current market cap of $4 trillion.Apple is diversified when it comes to the amount of revenue streams it profits from. It produces a wide range of hardware for consumers and businesses. And it sells a host of nontangible products like software and other digital services like its App Store. But one revenue source remains supreme: iPhones.Last fiscal year, the company generated roughly 51% of its total revenue from iPhone sales. Keep in mind that this doesn't include any aftermarket revenue or digital revenue from its App Store. This is simply the revenue earned from selling new iPhone models to consumers.In second place is a broad bucket it calls Services, which comprises a host of revenue sources including App Store purchases, content subscriptions through Apple TV and Apple Music, payments revenue from its Apple branded credit card, Apple Care warranty subscriptions, advertising revenue, and more.The final 25% or so of revenue is a combination of other hardware products including iPads, iMacs, and headphones.The takeaway here is that to find the next Apple, investors must find a company with the next big hit product. But this is true only to an extent. Without the iPhone, it's difficult to envision Apple as the behemoth it is today. You could say that iPhones are currently responsible for the company's dominance, yet that is only half true. They supply around 50% of revenue, with the entire other half of the business subsisting off a range of interrelated products. This is the true secret ingredient for success: an interoperable ecosystem.Image source: Getty ImagesApple's success involves inventing amazing products that consumers love. There's no doubt about that. But simply creating a great product doesn't ensure mass adoption -- creating an ecosystem in which use of one product drives use of another product is a powerful way to not only drive adoption, but also retain adoption.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,841.75 -41.00 (-0.60%)Dow Futures47,284.00 -189.00 (-0.40%)Nasdaq Futures25,880.75 -222.50 (-0.85%)Russell 2000 Futures2,465.60 -14.10 (-0.57%)VIX17.17 -0.27 (-1.55%)Gold3,994.50 -19.50 (-0.49%)PortfolioSign in to access your portfolioSign inTop gainersCIFR Cipher Mining Inc. 22.76 +4.11 (+22.04%)AMKR Amkor Technology, Inc. 37.84 +5.56 (+17.22%)LUMN Lumen Technologies, Inc. 11.83 +1.55 (+15.08%)IDXX IDEXX Laboratories, Inc. 722.94 +93.43 (+14.84%)FRPT Freshpet, Inc. 56.25 +7.04 (+14.31%)Top losersQURE uniQure N.V. 34.29 -33.40 (-49.34%)RGC Regencell Bioscience Holdings Limited 13.56 -3.09 (-18.56%)KMB Kimberly-Clark Corporation 102.27 -17.44 (-14.57%)UUUU Energy Fuels Inc. 17.80 -2.71 (-13.21%)QS QuantumScape Corporation 16.21 -2.23 (-12.09%)Most activeKVUE Kenvue Inc. 16.14 +1.77 (+12.32%)NVDA NVIDIA Corporation 206.88 +4.39 (+2.17%)CIFR Cipher Mining Inc. 22.76 +4.11 (+22.04%)PFE Pfizer Inc. 24.66 +0.01 (+0.04%)ONDS Ondas Holdings Inc. 6.15 -0.29 (-4.50%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersPLTR Palantir Technologies Inc. 207.18 +6.71 (+3.35%)KMB Kimberly-Clark Corporation 102.27 -17.44 (-14.57%)XRP-USD XRP USD 2.29 -0.15 (-6.09%)SRPT Sarepta Therapeutics, Inc. 24.45 +0.44 (+1.83%)NFE New Fortress Energy Inc. 1.1800 -0.1100 (-8.53%)Top economic events