Content |
- Main article about the company: Apple
- Chronicle of events to the present day: Apple history
- Market Capitalization and Stock Value: Shares and Apple Capitalization
2023
Fall in annual revenue to $383.29 billion Smartphones, computers and tablets buy less and less
In fiscal 2023, which ended at the end of September 2023 for Apple, Apple's revenue amounted to $383.29 billion against $394.33 billion a year earlier. The corporation's net profit also decreased - from $99.8 billion to $97 billion.
Apple's revenue declined as demand for smartphones, computers, tablets and wearable electronics fell. So, in fiscal 2023, iPhone sales amounted to $200.58 billion, which is less than a year ago at $205.49 billion. The implementation of the iPad in comparison with the same periods decreased from $40.18 billion to $29.36 billion, Mac computers - from $29.29 billion to $28.3 billion. According to Apple CEO Tim Cook, the iPhone 15 line sells better than previous models, and the supply disruptions of the older iPhone 15 Pro and iPhone 15 Pro Max models are caused by high demand.
Revenue in the division of wearable devices, home devices and accessories at the end of 2023 of the reporting year fell to $39.85 billion from $41.24 billion in 2023. Meanwhile, revenue from the App Store, Apple Music, Apple Pay and iCloud services reached $85.2 billion, showing an increase compared to 2022 fiscal year ($78.13 billion).
In the Americas, Apple's annual revenue fell from $169.66 billion to $162.56 billion, in Europe - from $95.12 billion to $94.29 billion.
As noted by CNBC, Apple's revenue decreased in each of the quarters of fiscal 2023, which was the worst result for the company since the release of the first iPhone in 2007. Against the background of these results, the shares of the American electronics manufacturer fell in price by 3.4% in the extended trading session on November 2, 2023 (the day of publication of financial statements). By this day, since the beginning of 2023, Apple's market capitalization has increased by 36.7% and reached $2.7 trillion (the highest value among public companies by early November 2023).
Apple reports fourth quarter results
Emerging markets share of smartphone shipments - 11%
The chart is based on data from the first quarter of 2018 through the second quarter of 2023.
In the list of companies with the largest R&D costs
For Amazon shows the costs of technology and content (not R&D).
ByteDance statistics date back to 2021 (according to the Wall Street Journal)
Apple is the leader in the fall in the PC market in the first quarter: - 40%
According to the latest IDC report, shipments from all PC manufacturers combined fell 29% to 56.9 million units - and were below the level of early 2019 - as a surge in demand caused by remote work during the COVID-19 pandemic faded.
Personal computer shipments Apple fell 40.5% in the first quarter of 2023, marking a tough start to the year for PC manufacturers facing a glut of unsold inventory.
2022
Increasing R&D costs
Net income $99.8 billion
Record sales in China
Quarterly revenue by category
Growth in revenue from the services segment to $75 billion in 12 months
$200 billion cash on balance sheet
2021
Share of global smartwatch sales - 30.1%
Revenue - $365.82 billion, profit - $94.68 billion
In fiscal 2021 Apple , it raised a record $365.82 billion against $274.52 billion a year earlier. Sales of devices from the company during this time rose from $220.75 billion to $297.39 billion, and revenues from services (,, etc.) App Store Apple Pay iCloud increased from $53.77 billion to $68.43 billion.
The largest source of earnings remains sales, smartphones which for the 12-month period closed on September 25, 2021 of the calendar year amounted to $191.97 billion, while a year earlier they were measured at $137.78 billion.
"'Net revenue"' (net revenue) - revenue for added value.
This revenue includes revenue costs such as discounts, returns, etc.
Net Revenue Formula = Gross Revenue - Directly Related Selling Expenses.
Sales of Apple computers also increased over the year - from $28.62 billion to $35.19 billion. Positive dynamics was also noted in the tablet market: here the revenues of the American corporation in 2021 in the reporting year increased to $38.37 billion from $30.62 billion a year earlier.
Wearables, Home and Accessories, which includes wearable electronics, smart speakers and all kinds of accessories, recorded sales growth from $53.77 billion to $68.43 billion.
Apple's main sales market remains the countries of the Americas (mainly the United States), where the company earned about $153.31 billion in fiscal 2021. This is more than in the previous year, when the figure was $124.56 billion.
In Europe, Apple's turnover reached $89.31 billion, increasing from $68.64 billion. In China, sales also increased - from $40.3 billion to $68.37 billion. In Japan, there was a rise from $21.42 billion to $28.48 billion. In the Asia-Pacific region, excluding China and Japan, the company's revenue at the end of the 2021 financial year was $26.36 billion, increasing from $19.59 billion a year earlier.
Net profit in fiscal 2021 turned out to be $94.68 billion, significantly increasing relative to profit a year ago at $57.41 billion.
Financial results were worse than forecast. Apple CEO Tim Cook explained this by serious restrictions on supplies to the market. According to him, Apple received less than $6 billion due to a lack of chips.[1]
3rd place in the smartphone market in the second quarter
Main article: Smartphones (global market)
In the second quarter of 2021, Apple fell from second place in the global smartphone market.
In the second quarter, the share Samsung was 19%, Xiaomi - 17%, and Apple - 14%.
Sales surge in Q1
2020
Global Smartwatch Market Share -34.3%
Apple The global market share smartwatch was 34.3% (data). IDC More. here
Apple earns the most from video games, although it itself has not released a single one
In early October 2021, it became known that Apple earns more from video games than other companies, although it itself has not released a single game.
According to The Wall Street Journal (WSJ), citing analysts at Sensor Tower, in 2020, sales of games and content in them in the App Store in 2020 reached about $45 billion, with most of the costs (about 31%) accounted for the Chinese market. The share of purchases in the United States was 26%.
In total, in 2020, Apple earned $13.5 billion from the sale of games, which corresponds to 5% in the corporation's total turnover of $275 billion. By comparison, iPhone sales provide roughly 50% of the company's revenue.
It is noted that 88% of income is accounted for by only 6% of players from the App Store. On average, they spend more than $750 a year. And 1% of the largest gamers spend an average of $2,700.
WSJ cites data that for the 2019 fiscal year, Apple earned more on video games than Nintendo, Activision Blizzard, Microsoft and Sony combined. Apple's annual operating profit from the sale of games reached $8.5 billion.
An Apple spokesman explained to the publication that these figures are not entirely correct and higher than the real ones. However, the company did not provide reports on individual categories on its part. The WSJ clarified that even if this information from a third-party analytical company is overstated, then not much. Since in any case, Apple earned $2 billion more from games than all developers, studios and major publishers.
Apple earns twice in this market, first receiving a commission from developers who pay for the opportunity to download games to the App Store, and then from gamers who download them. In contrast, Nintendo, Microsoft, Activision and Sony sell games at a higher price, but ultimately earn less.[2]
iPhone sales fall due to late release of new smartphones
At the end of fiscal 2020, Apple earned $274.52 billion in revenue against $260.17 billion a year earlier. The sale of products increased from $213.88 billion to $220.75 billion, and the volume of the service business (App Store, iCloud, iTunes, Apple Pay, etc.) rose from $46.29 billion to $53.77 billion.
Apple's main source of revenue remains smartphones. In 2020, the sale of the iPhone amounted to $137.78 billion, having decreased relative to the indicator of one year ago at $142.38 billion. The decline due to the fact that users were waiting for the release of new models, and it was delayed due to the COVID-19 coronavirus pandemic. Apple CEO Tim Cook claims interest in the company's 5G iPhone line and other new devices has been "extremely positive."
Computer shipments brought Apple annual revenue of $28.62 billion against $25.74 billion a year earlier. In the tablet market, the company's revenues rose from $21.28 billion to $23.72 billion. In the direction of wearable electronics, home gadgets and accessories, sales growth was registered from $24.48 billion to $30.62 billion.
As for the regions, the lion's share of Apple's turnover still falls on North and South America, where the corporation earned $124.56 billion in 2020, against $116.91 billion in 2019. In Europe, sales also increased - from $60.29 billion to $68.64 billion. But in China, Apple's revenue decreased on an annualized basis (from $43.78 billion to $40.31 billion), as well as in Japan (from $21.51 billion to $21.42 billion).
On the day of the annual statements, Apple shares fell 4.22% in electronic trading after the exchange closed. As a result, the company's market capitalization in one day sank by almost $100 billion. Quotes fell due to lower revenues in China and the fact that iPhone sales fell short of market expectations.[3]
2019
Among the 20 most profitable companies in the world
Revenue - $260.17 billion, net profit - $55.26 billion
Apple ended fiscal 2019 with revenue of $260.17 billion against $265.6 billion a year earlier. Sales of the company decreased due to a decrease in demand for the iPhone.
For the reporting 12-month period, closed on September 28, 2019 of the calendar year, Apple earned about $142.38 billion from the iPhone, which is significantly lower than the one-year-old figure of $164.89 billion. The telephone business, which still brings the American manufacturer more than half of the turnover, turned out to be the only one falling from Apple.
Computer sales brought the company $25.74 billion in revenue for the year, which is slightly more than in the 2018 reporting year, when revenues were measured at $25.2 billion.
Apple's annual revenue in the tablet market rose from $18.38 billion to $21.28 billion, and sales of wearable electronics, wireless speakers, headphones and other products, which are classified as Wearables, Home and Accessories, increased from $17.38 billion to $24.48 billion.
Service income, which includes earnings on the Apple Pay payment system, the App Store and other services, reached a record $46.29 billion in 2019. In 2018, revenue was $39.75 billion.
The largest market for Apple products remains the countries of the Americas, which in fiscal 2019 brought the corporation $116.91 billion in revenue against $112.09 billion a year earlier.
Revenues in Europe on an annualized basis decreased from $62.4 billion to $60.29 billion. In the Chinese market, Apple sales fell from $51.94 billion in 2018 to $43.68 billion a year later. In Japan, the company's revenue changed slightly and amounted to $21.5 billion.
In fiscal 2019, Apple recorded a net profit of $55.26 billion, less than a year ago profit of $59.53 billion.[4]
Sales slump in China. Schedule
Apple leaves world No. 1 in profit
Apple is no longer the most profitable company in the world - that title went to the Saudi Aramco oil company, which is based in Saudi Arabia. At the end of 2018, the profit of the Arab competitor reached $111 billion, while Apple's profit amounted to only $59.53 billion. English-language technology media agree that with such a break, Apple will not be easy to return to the first line of the rating, if at all possible[5] to[6] the[7].
On the third line is Samsung with a profit of $35.1 billion. This is followed by the Alphabet parent company and Google the financial conglomerate, JPMorgan whose profit is at the level of $30.7 billion. In sixth place is located Shell with a profit of about $23.4 billion, followed by $20.8 Exxon Mobil billion. This follows Amazon with a profit of $10 billion.
2018
Capitalization falls below $1 trillion despite record revenue
At the end of fiscal year 2018, Apple raised $265.6 billion against $229.2 billion. Sales became record, but despite this, the company's shares fell 7% after the publication of the statements, and the market capitalization of the iPhone manufacturer decreased by $70 billion and was below $1 trillion.
Apple's net profit for the 12-month reporting period ended September 29, 2018 was $59.5 billion, while in fiscal 2017 it was measured at $48.4 billion.
Annual iPhone sales increased from 216.8 to 217.7 million units. Revenue from them in fiscal 2018 reached $166.7 billion. Thus, the sale of smartphones brought Apple almost 63% of revenue.
At a conference on the publication of annual reports, Apple CFO Luca Maesti said that starting in the first quarter of 2019, the company will cease to disclose the number of smartphones, computers and tablets sold. This information, according to the top manager, "does not always reflect the main strength of our business."
 | The number of sales now is not as relevant for us as it was in the past, given the breadth of our product portfolio and the strong spread of prices in any of these lines. By the way, our main competitors in the smartphone, tablet and computer markets do not provide quarterly information on quantitative sales, "Maetry said. |  |
The announcement was one of the reasons Apple's quotations fell, as investors are clearly not happy with the company's decision to withhold device sales. [8]
By the end of September 2018, Apple had accumulated $237.1 billion in cash, down $6 billion from three months earlier. Such a large stock generates rumors about large acquisitions of Apple and investments in content creation, and also allows the company to actively grow its business in developing regions and create thousands of new jobs in the United States.
Apple has returned €9bn in taxes to Ireland and will transfer another €5bn
In early August 2018, Apple announced the return of 9 billion euros in Irish taxes in accordance with the requirements of the European Union. The company remains to transfer another 5 billion euros. From June 30 to early August, Apple transferred 4.5 billion euros.
Apple is at the center of one of the largest cases under consideration by the European Commission (EC). The regulator declared illegal the tax breaks provided by Apple by the Irish government and ordered the company to pay the country's authorities 13 billion euros and 1 billion euros in interest.
According to the EC, over 10 years, Apple paid a 3.8 percent tax on $200 billion in profits made outside the United States. Apple was also a pioneer of the tax scheme, which was later called the "double Irish with Dutch sandwich." The company conducted profits through Irish and Dutch subsidiaries, paying the minimum tax, and then took it to the Caribbean.
European Commissioner for Competition Margrethe Vestager expressed dissatisfaction with the slow return of Apple funds, which she called "illegal state assistance for Apple from Ireland."
On August 2, 2018, European authorities announced their readiness to withdraw Apple's lawsuit if Apple transferred the entire required amount of funds.
| | We remain in close contact with the Irish authorities and hope that the return of illegal aid will be completed in full as soon as possible. It would also allow the current proceedings to be terminated and prevent the European Court of Justice taking up arms against Ireland for failing to comply with the commission's decision. | |
Apple's case has become the biggest in a string of investigations in which dozens of companies are suspected of underpaying billions of euros in taxes. The EC has not yet made a decision on [[McDonalds (McDonald's)|McDonald's] and on the British tax regime of international companies, Bloomberg notes[9]
Apple revenue more than Portugal's GDP
By May 15, 2018, Apple's market capitalization exceeded $962 billion. Thus, the American electronics manufacturer, whose revenues are larger than the GDP of some large countries, is close to becoming the first company worth $1 trillion.
According to Reuters, Apple's revenue in 2017 amounted to $229 billion, which is more than the GDP of countries such as Portugal and New Zealand, and roughly corresponds to Finland.
2017
The possibility of saving up to $47 billion thanks to President Trump's tax reform
In December 2017, it became known that the amount of Apple's tax liabilities could be reduced by $47 billion if Republicans promote their tax program of President Donald Trump, aimed primarily at reducing corporate income tax.
The impressive scale of tax cuts, according to tax experts and observers of the Financial Times (FT), came under scrutiny in early December 2017, when bills from the Senate and House of Representatives in the United States agreed on the issue of managing approximately $1.3 trillion in revenues of American companies stored offshore.
The potential windfall for Apple is due to a reduced tax rate on foreign income outside the United States. Like many other companies, Apple decided to leave the bulk of its foreign profits abroad so as not to pay a 35% corporate tax, if funds were returned to the United States. Republicans in their program propose to tax such income no more than 14.5%, regardless of the location of the funds.
According to the rating agency Moody's, Apple's revenue outside the United States in investment and cash equivalent reaches $252 billion, which corresponds to about one fifth of all foreign revenues of American companies. Apple's combined net income significantly exceeds the $132 billion of Microsoft, the American corporation with the second largest foreign income.
If, under tax legislation in force by early December 2017, Apple returns its foreign income to its homeland, the company will have to pay $78.6 billion. According to the Senate tax bill, Apple will immediately have to pay approximately $31.4 billion for past foreign revenues. The difference between the two amounts is at least $47 billion, which exceeds the annual income of any other American company, the FT notes.[10]
Return of €13bn in unpaid Irish taxes
In early December 2017, Apple agreed to return unpaid taxes to Ireland in the amount of 13 billion euros. This was told by the Irish Minister of Finance Pascal Donohoe.
| | We have reached an agreement with Apple on the principles of the collection fund. We expect the work to be completed sometime in January 2018, and then we expect money from Apple to start flowing into our account in the first quarter of next year, "he said. | |
The head of the Irish financial department, at a meeting with the European Commissioner for Competition Margrethe Vestager, agreed on the parameters for Apple's tax refund procedure.
According to Donoghue, the parties will create a trust fund through which funds will be transferred. In addition, it is planned to attract an investment manager who will deal with financial management in Ireland.
In 2016, the European Commission (EC), according to the results of the investigation, concluded that Ireland provided Apple with unjustified tax breaks, as a result of which the country received less than 13 billion euros.
In its decision, the regulator emphasized that the American company gained a significant advantage over other companies. Following an investigation that lasted three years, the EC concluded that Apple's structure in Ireland "did not correspond to economic realities."
Apple did not comply with the EC's tax refund requirements, and then the commission sued Ireland.
According to a report by the South Korean Trade-Investment Promotion Agency, Ireland has become a tax haven for large international companies thanks to relatively low corporate taxes and various tax incentives. For example, foreign companies can pay taxes at a rate of as little as 6.5% for research and development activities in Ireland[11]
Sales growth to $229 billion for the year
In the 2017 fiscal year ended September 30, 2017, revenue Apple reached $229.2 billion against $215.6 billion a year earlier. Net profit during this time rose from 45.7 to 48.4 billion. dollars
For fiscal 2017, Apple sold 216.8 million smartphones against 211.9 million a year earlier.
Apple reported a return to revenue growth in the Chinese market thanks to a double-digit increase in iPhone sales. Luka Maestri also noted that the company doubled revenues in India, but did not disclose additional details on this score. Apple's performance in Russia is not given in the financial report.
Strong growth in sales of smartphones and Apple Pay in Russia
At the end of January 2017, Apple published a report on its work in the first quarter of fiscal 2017. The company noted the fast-growing sales of smartphones in Russia and the great success of the Apple Pay payment system, achieved partly at the expense of the Russian market.
For the reporting three-month period, closed on December 31, 2016, Apple's revenue amounted to a record $78.4 billion, which is 3.3% more than a year earlier. The company's sales increased for the first time in four quarters. Net income at the same time decreased from 18.4 to 17.9 billion dollars.
In October-December 2016, 78.29 million iPhones were sold against 74.78 million units in the same period in 2015. In the United States, Canada, Western Europe, Japan and Australia, double-digit growth in smartphone sales was recorded, while in many emerging markets, to which Apple includes Brazil, Turkey, Vietnam, Russia, countries of Central and Eastern Europe, the rise was even higher.
As a result, the average sales value of the company's phones increased to $695 in December 2016 from $619 three months earlier. This growth was also helped by strong demand for the iPhone 7 Plus model.
The company's fast-growing revenues in the United States, Japan, Canada, France Australia, Brazil Turkey and Russia provided the company with record revenues in most developed and developing regions, Apple said in a report.
In early October 2016, the Apple Pay payment service was launched in Russia. The Russian market made a significant contribution to the increase in the volume of transactions in the system by 500% in the first quarter of 2017 of the fiscal year compared to the same period of 2016 of the fiscal year. By the end of January 2017 calendar year, Apple Pay is available in 13 countries, and the number of companies working around the world with this service has approached 2 million.[12]
2016
The first drop in revenue in 15 years to $215.6 billion
On October 25, 2016, Apple released its fiscal 2016 performance report. The annual revenue of the American corporation decreased for the first time in 15 years.
For the 12-month reporting period ended September 24, 2016, Apple's net profit was $45.7 billion against $53.4 billion a year earlier. Sales fell to $215.6 billion from $233.7 billion. The company's revenue fell for the first time since 2001.
Apple's revenue is declining largely because of weakening demand for the iPhone, which accounts for 63% of the California giant's turnover. In July-Senyatbra 2016, Apple sold 45.5 million phones worth $28.2 billion, respectively, 5% and 13% less than a year ago. The quarterly decline in iPhone sales turned out to be the third in a row. It is worth noting that reporting was being prepared two weeks after the start of sales of the new Apple iPhone 7 and iPhone 7 Plus, so their sales did not affect the results.
Apple's biggest revenue decline was recorded in Greater China (mainland China, Hong Kong, Macau and Taiwan), where turnover fell 30% year-on-year. In the United States, the drop in income was 7%, and in Europe this figure grew by 3%.
Apple itself called the financial indicators "confident" and noted the strong growth of the service business.
| | Our solid results for the quarter ended September summarize fiscal 2016, which was a very successful year for Apple. We are delighted with the reaction of users to the iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible performance of our services business, in which revenue growth was 24%, setting an absolute record, "said Apple CEO Tim Cook. | |
In comments to the report, Apple CFO Luka Maestri noted that the company recorded a record cash flow from operations ($16.1 billion for the fourth quarter of fiscal 2016) and returned $9.3 billion to investors in the form of share buybacks and dividend payments, bringing the total amount of payments to investors under the capital return program exceeded $186 billion.[13]
The European Union demanded that Apple pay Ireland €13 billion
Ireland demonstrated a "selective attitude" towards Apple and allowed the company to pay income taxes at an effective rate of 1%, the European Commission said in a statement. In her opinion, as a result, Apple received illegal tax breaks in the amount of up to €13 billion[14][15].
The European Commission stressed that the American company received a significant advantage over other companies. Following the investigation, which lasted three years, the regulator claims that Apple's structure in Ireland "did not correspond to economic realities."
The European Commission said in a statement that almost all revenues received by two Apple subsidiaries that managed sales outside the United States were counted as related to the "head office," although, according to the regulator, such offices existed "only on paper" and did not receive any profit.
We are talking about Apple Sales International and Apple Operations Europe. "Such income reserved for" head offices "was not taxed in any country on the basis of special provisions of Irish tax law, which are no longer valid," the report says.
The position of Brussels in the United States has already been called "unfair." The final decision, due on Tuesday, "could increase tensions between Europe and the United States regarding tax policy," Bloomberg notes.
The US Treasury called the tax investigation "dishonest" and said it would likely have a bad effect on Europe's investment climate and economic relations between the two countries. Democratic Party senator Charles Schumer accused Brussels of greed, the BBC reported.
According to Irish Finance Minister Michael Noonan, the country "did not provide a favorable tax regime for Apple." "Ireland is not doing deals with taxpayers," the minister added. The Irish cabinet later intends to meet to discuss the decision of the European Commission.
Apple said: "The European Commission has made an attempt to rewrite Apple's history in Europe, ignore Irish tax laws and upend the international tax system."
According to Cook, the statements of the European Commission on tax concessions for Apple by Ireland have no reason. "We found ourselves in a strange situation: we were obliged to pay additional taxes to the government of the country, which officially recognizes that we owe it nothing," the head of the company notes. Cook called the actions of the EU authorities unprecedented. He believes that the European Commissioners are proposing to replace the Irish tax legislation with their own vision.
2015
Revenue of $233.7 billion and record profit of $53.4 billion
On October 27, 2015, Apple published its results in fiscal year 2015. The American company's revenues were record thanks to growing demand for iPhones, expanding the geography of the availability of Apple Watch smartwatches and the largest computer sales in history.
For the 12-month reporting period ended September 26, 2015, Apple received revenue of $233.7 billion, up 22% from a year earlier. The corporation's net profit jumped 26%, reaching $53.4 billion.
The California giant's operating profit was $71.2 billion against $52.5 billion in fiscal 2014. Operating expenses for the same period rose to $22.4 billion from $18 billion. Apple spent about $8.1 billion on research and development.
The main source of profit for Apple remains the iPhone. This time, smartphones were sold in record numbers. In particular, 74.5 million iPhones were sold against 51 million for the same period last financial year. Also pleased with the sales of Mac computers: 5.5 million versus 4.8 million earlier. But iPad sales fell to 21.4 million - a year earlier, 24 million tablets were sold.
2015 Fingod Head of Apple Tim Cook called the most successful in the history of the company. The annual profit of the iPhone and iPad manufacturer turned out to be the largest in the history of the global market. The previous record belonged to the oil corporation ExxonMobil, which in 2008 recorded a net profit of $45.2 billion due to peak oil prices.
"This success was made possible by our commitment to creating the best and most advanced products in the world, which is a testament to the tremendous excellence of our team," Cook stated.
In July-September 2015, Apple sold a record number of computers for the quarter - 5.7 million units, which is 3% more on an annualized basis. iPhone sales increased by 22% to 48 million units, while iPad sales, on the contrary, decreased by 20% to 9.9 million devices.
On Internet services and various services (for example, the sale of licenses for the use of technologies), the American corporation earned $5.1 billion in the fourth quarter, increasing this result by 1% compared to a year ago.
Apple CFO Luca Maesti notes that during the quarter, the company returned $17 billion to investors in the form of share buybacks and dividend payments. The total amount of returned capital exceeded $143 billion out of $200 billion pledged to the program.[16]
Apple's corporate business reaches 50% of Microsoft's performance
At the end of September 2015, Apple announced revenues in the corporate market. They turned out to be equal to 50% of the corresponding indicators of Microsoft.
During a speech at a conference organized by a business manufacturer, software Box Apple's CEO Tim Cook said that his company's corporate business for the 12-month period ended in June 2015 amounted to $25 billion. The head of the IT giant did not specify what is included in this figure, and only noted that it does not take into account the income from people using Apple devices for work purposes.
'It'snot just a hobby. It's a real business, "Tim Cook said.
According to The Wall Street Journal, revenue from sales of business solutions of $25 billion corresponds to about 11% in Apple's annual turnover. Thus, the corporation is one of the ten largest technology sellers to other firms, but it earns the most from consumer products. Microsoft's sales of corporate solutions for the fiscal year, closed in June 2015, amounted to $52 billion.
Tim Cook sees the corporate market as very important for Apple's future growth. It is very difficult to work here without partner support, so the iPhone manufacturer has already begun working with IT giants such as IBM and Cisco.[17]
"In the past, Apple and IBM have been enemies, as have Apple and Microsoft. Microsoft and Apple can now work together on more things, which is great for our customers. That is why we are doing this, "said Tim Cook.
At the same time, he admitted that Apple lacks large contracts in the corporate market
"Wedon't have deep knowledge in the verticals that the business is in," Cook said, referring to selling solutions in sectors like financial services and power.
2014
Only 1 % of Apple sales will be available on the iPod
Decline in iPad sales and growth of iPhone and Mac in Q3
In April 2014, the company's report for the third quarter of the 2013-2014 financial year was published. The vendor's income amounted to $37.4 billion, and profit - $7.7 billion. For comparison, the company's income for the same quarter of the previous year amounted to $35.3 billion, and profit - $6.9 billion. During this period, Apple reduced iPad sales by 9%, increased iPhone sales by 13%, and Mac computers by 18%.
2013: US Senate: Apple evaded billions of dollars in taxes
USA A Senate subcommittee said in May 2013 it was Apple evading billions dollars in income tax by using offshore tax havens to do so.
The Senate Permanent Subcommittee on Investigations said Apple is using a "complex network of offshore firms," including three overseas subsidiaries that are not tax residents of any country, to reduce the amount of income tax.
A sub-commission report said one of Apple's Irish subsidiaries had not paid income taxes in any country for the past five years. The report found the practice was not outside the law, but subcommittee chairman Sen. John McCain called for the company to be held accountable for exploiting tax loopholes.
"Apple claims to be the largest corporate taxpayer in the U.S., but by virtue of its size and scale alone, it is also among America's largest tax defaulters," McCain said in a press statement. - A company that has gained huge success by leveraging the power of the U.S. economy should not shift its profits abroad to evade U.S. taxes, purposefully depriving the American people of income. It's important to understand Apple's dodgy tax structure so we can effectively plug the loopholes used by many US multinationals. "
The sub-commission says Apple is using an offshore holding company called Apple Operations International, which is not a tax resident of any country. This holding company was established in Ireland in 1980, but has no full-time employees or physical presence. In Ireland, only companies whose control and management is carried out domestically fall under tax jurisdiction, while in the United States the status of a tax resident comes from the actual location of the company.
The subcommittee's report states that Apple Operations International has not filed an income tax return in the past five years, although its revenue between 2009 and 2012 was $30 billion.
Also, the sub-commission stated that the second Irish subsidiary, Apple Sales International, had a total sales of $74 billion over the same four-year period, but paid tax for 2011 at an effective rate of only five hundredths of a percent. According to the subcommittee, using these tax loopholes and offshore firms, Apple has avoided paying taxes of $44 billion in taxable income over the past four years.
As of May 2013, Apple's cash reserve is $145 billion, but more than $100 million of this amount is outside the United States.
Apple sent an official assurance to the Senate Permanent Subcommittee on Investigations, in which it said it was doing its business "in full compliance with the law and in the spirit of the law" and "paying all taxes required by law" in the United States and abroad.
The company emphasized that it pays a "colossal amount of taxes in the United States" and is probably the largest income tax payer in the country, indicating that it paid $6 billion in taxes for its 2012 fiscal year.
"Apple welcomes an objective study of the corporate taxation system in the United States, which has not kept pace with the onset of the digital era and the rapidly changing global economy," the document says.
Later, the head of Apple gave answers to the accusations in the US Senate:
"Apple is an American company"
"Apple has hadunprecedented success over the last 10 years. The worldwide popularity of our products has reached unprecedented heights, and our overseas revenues are twice our US revenue today. I'm often asked: Does Apple still consider itself an American company? My answer was always' yes'. We are proud to be an American company and equally proud of our contribution to the U.S. economy[18]
Mobile Application Economics
"If you've ever used an iPhone or iPad, you know that mobile apps are now one of the hottest areas of IT. Applications have made software development a fast-growing segment of employment in the United States. According to our estimate, the App Store has created almost 300,000 new jobs in the United States. Developers of applications sold through the App Store earned over $9 billion - half of this amount last year alone. This economic activity simply did not exist five years ago. But Apple took the bold step of creating its App Store and gave life to the mobile app economy. "
Creating jobs
"While U.S. employment growth has stagnated in the past decade, Apple's workforce in the country has grown five times. Today the company has 50 thousand people, and we have staff in all 50 states. Apple has created hundreds of thousands of jobs in small and large companies that support us - from people in production to those who supply products to our customers. So, components for iPhone and iPad are made in Texas, and glass for iPhone comes from Kentucky. In total, Apple has created or secured 600,000 new jobs. We've used our profit growth to invest billions of dollars to create even more jobs in America. We are investing $100 million to launch the Macintosh line in the United States by the end of this year. The product will be assembled in Texas, components from Illinois and Florida, components from Kentucky and Michigan. "
Largest taxpayer
"To our knowledge, Apple has become the largest corporate income tax payer in America. Last year, our effective tax rate paid to the U.S. Federal Center in cash was 30.5%, and we paid the U.S. Treasury nearly $6 billion in cash. This is more than $16 million per day. And we expect more to come this year. "
"Up to the Last Dollar"
"We payall the taxes we are owed - up to the last dollar. We do not just observe the law, but we observe the very spirit of the law. We don't rely on tax tricks. We do not transfer intellectual property abroad or use it to sell our products back to the United States and pay no taxes. We don't stash money in the Caribbean. We do not take money from our overseas branches to fund our U.S. business and thereby circumvent the repatriation tax.'
Capital abroad serves for international growth
"Ouroverseas branches account for 70% of our cash due to the rapid growth of our international business. We use that profit to fund our overseas operations - spending billions of dollars buying equipment to make Apple products and to fund the construction of Apple retail salons around the world. Under the current corporate tax system, moving that cash back to the United States would cost us too much. Unfortunately, the Tax Code has not kept pace with the digital age. The tax system puts American corporations at a disadvantage compared to foreign competitors, which do not have such restrictions on the free movement of capital. "
For tax reform
"We recommend a significant simplification of the corporate tax system. This reform should not affect the income of the state, but will eliminate all expenses on corporate tax, reduce corporate income tax rates. It is necessary to introduce a reasonable tax on profits abroad in order to ensure the free movement of capital back to the United States. We offer our recommendations, clearly aware that this is likely to lead to higher taxes on Apple in the US. But we strongly believe that such comprehensive reform would be fair to all taxpayers, allow America to remain competitive on the world stage, and promote U.S. economic growth. ""I
think the US sales tax rate, as most studies I've seen show, should be in the 25 per cent range if all tax costs are set aside."
Reduce repatriation tax
"Today there is a barrier in terms of repatriation of cash - it returns to the country with a tax of 35%. Therefore, our proposal is such that we eliminate all corporate tax expenses, move to a simple system and have a reasonable tax on the return of money from abroad. And I think if we did that, then a lot of companies would move their capital here to invest in the United States, and that would be great for the economy. ""Apple is
not calling for a temporary tax exemption. We believe that the Tax Code will be radically reformed. I think that the rate on the return of profits received abroad should be about a few percent. And I think this will not have a negative impact on state revenues. That means: some companies will pay a little more - and I think we'll be one of them - and others will pay less. But more importantly, it will contribute to the country's growth. "
California, sweet home
"We are an American company, we have an overwhelming amount of R&D going on in California. I never had a thought of moving our headquarters to another country.'
Apple has no plans to return cash to the United States
"We cannot use our overseas cash to invest in the United States. I have no intention of returning foreign cash here at the current tax rate. That's not to say Apple will never do that, even if the U.S. government doesn't lower the repatriation tax rate. Things can change. "
2012
Apple's financial risk analysis
According to financial analysts, the greatest risk to Apple's assets, ironically, is what is now just the strength of the company's business - incredibly high margins. However, usually the margins of equipment companies are expressed in single digits. A large margin, however, is completely normal for software companies such as Microsoft, whose business is based on products with a much lower production cost.
Having built a hardware and software empire, that is, by crossing these two types of IT businesses, Apple managed to achieve huge market shares in the devices it produces and at the same time put the law described above on its head.
The graph below shows Apple's steady revenue growth from September 2007 to March 2012.
Such high business margins allowed Apple to even reduce prices to almost $600 for its flagship devices. smartphones iPhone However, all good things ever end.
If it suddenly turns out that Apple's profitability has reached its peak or even begun to decline, it will invariably have a depressive effect on the stock market. In favor of the fact that sooner or later this may happen, there is a number of evidence:
- Apple's margin reaches about 30% after paying taxes. This is an incredibly high figure both for the equipment manufacturer and in general for the IT company;
- Competition in the user device market is intensifying. Apple is able to generate above profit to the extent that it keeps prices for its devices on the top bar, while achieving the maximum reduction in operating costs. But the emergence of a new generation of phones from Samsung is successfully competing with apple phones, and a comparable Google tablet is sold for half the price of an iPad;
- Sales within Apple's product portfolio are gradually shifting in favor of more budget models, and the pricing policy for the corporation will become an increasingly acute problem as it enters the mass market and competition increases from cheaper models of other vendors;
- The next billion users smartphones and tablets will be much more price sensitive than the first billion. At the moment, the number of smartphone users in the world has reached 1 billion, and cell phones - 6 billion. Now the increase in the smartphone market will come at the expense of the less wealthy inhabitants of the planet, so the issue of the price of the device will be increasingly significant in the competition;
- The share of the iPad in Apple's total revenue is growing, but the average price of the device has dropped sharply over the past year due to a certain combination of sales of more expensive and cheaper versions of the tablet. Thus, sales in this area increased by 84% over the year, but revenue - only by 52%. Perhaps Apple is preparing a device that can oppose small tablets like the Kindle and Google Nexus 7, which cost about $200. However, it is certain that in this price segment the company's margin will not be so high.
Revenue Structure: Third Quarter
Apple released data for the third fiscal quarter of 2012, reporting revenue of $35 billion, which was below Wall Street expectations ($37.1 billion). According to the released information, the iPhone continues to be the main driver of the company's revenue growth, but is no longer the most profitable item for Apple.
So, iPhone sales accounted for 46% of Apple's revenue in the third quarter of 2012, which is lower than the 58% figure achieved in the second quarter of 2012, although in general the result is still quite impressive for a phone that entered the market 5 years ago.
Apple 2007-2012 revenue structure quarterly
In quarterly terms, iPhone sales brought in less revenue to the extent that device prices for the specified period decreased from $647 to $624 per device. At the same time, the share of iPad sales in Apple's total revenue over a comparable time period increased from 17% to 26%.
Comparable to the iPad, the third-quarter revenue share was computer sales revenue. Sales of iPad, software and services accounted for only a few percent of revenue.
2008: Revenue - $7.9 billion
Apple's revenue for the IV quarter of the 2008 fiscal year ended September 27 amounted to $7.9 billion. Net income was $1.14 billion or $1.26 per share.
In the period from July to September 2008, the company sold 2 million 611 thousand computers, Macintosh which turned out to be 21% more in quantitative and 17% more in monetary terms compared to the same three-month period in 2007. Sales of iPod players amounted to 11 million 52 thousand - 8% more in numerical and 3% more in monetary terms. Sales iPhone amounted to 6 million 892 thousand - against 1 million 119 thousand in the same period a year ago.
2009: Revenue - $42.9 billion
Fiscal year ended at the end of September 2009:
- Revenue - $42.9 billion,
- Net profit - $8.2 billion.
1995: Turnover of $11 billion
In 1995, Apple's turnover exceeded $11 billion.
Notes
- ↑ CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
- ↑ Apple Doesn’t Make Videogames. But It’s the Hottest Player in Gaming
- ↑ CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
- ↑ Apple Reports Fourth Quarter Results
- ↑ [http://www.cnews.ru/news/top/2019-04-02_apple_perestala_byt_samoj_pribylnoj_kompaniej , Apple has ceased
- ↑ be
- ↑ most profitable company in the world. There is no chance of regaining the title]
- ↑ [Apple Reports Fourth Quarter Results https://www.apple.com/newsroom/2018/11/apple-reports-fourth-quarter-results/]
- ↑ [1]Apple Still Has $5.8 Billion to Pay After EU's 2016 Tax Demand
- ↑ Apple will see up to $47bn potential benefit from tax reform
- ↑ Ireland to finally start collecting €13bn Apple back taxes early next year
- ↑ Apple (Aapl) Q1 2017 Results - Earnings Call Transcript
- ↑ Apple Reports Fourth Quarter Results
- ↑ The European Union demanded that Apple pay Ireland €13 billion
- ↑ The European Commission may require Apple to pay taxes in the amount of up to $19 billion
- ↑ Apple Reports Record Fourth Quarter Results
- ↑ Apple’s Business-Related Revenue Hits $25 Billion
- ↑ " 10 points from the answers of Apple's chief executive in the US Senate
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