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A Bite Out of Apple

DUT OF With its explosively popular products and knack for design, Apple, Inc., maintains a wide profit margin on its products while keeping its R&D and lobbying costs relatively low. It's not always clear how Apple spends its money, but check out this breakdown of expenses for some clues about its formula for sUccess. THE WORLD'S MOST VALUABLE COMPANYS BREAKING ITS OWN RECORDS NET 2011 SALES 2012 $108.249 billion GROSS 2011 $43.818 billion (cost of sales subtracted) $156.508 billion MARGIN 2012 $68.662 billion (cost of sales subtracted) Growth in one fiscal year Total Operating Expenses Net Income Before Taxes 2011 - 2012 58% $13.421 billion $55.763 billion SPENDING ON THE INCREASE SELLING, GENERAL AND ADMINISTRATIVE RESEARCH AND DEVELOPMENT FY 2008 $3.761 billion FY 2008 $1.109 billion FY 2009 $4.149 billion FY 2009 $1.333 billion FY 2010 $5.517 billion FY 2010 $1.782 billion FY 2011 $2.429 billion FY 2011 $7.599 billion FY 2012 $10.04 billion FY 2012 $3.381 billion COMPANIES THAT QUTSPEND APPLE ON RESEARCH & DEVELOPMENT (intel) Google Microsoft CISCO. A FEW KEY EXPENSES SPENDING ON DATA CENTERS 94% 7% Only 7% projected increase for 2013 Increase from 2011 2011 2012 2013 $7.04 billion estimated expenses on data centers in 2012 SALARIES I $3 Million Average Bay Area/Silicon Valley CEO FY 2011 $378 Million Tim Cook, CEO of Apple 2012 2011 RETAIL STORES BUDGET $614 million $900 million Product tooling/manufacturing process equipment $7.1 BILLION Corporate infrastructure and facilities Information systems enhancements, software, and hardware budgeted in 2012 for A LOWER TAX RATE INCOME TAX RATE 31.8% 24.4% 24.2% 25.2% 2009 2010 2011 2012 INCOME TAXES PAID STATUTORY 75% MCOME TAX RATE for companies like Apple 2011 2012 Reason cited for paying lower rate: Foreign earnings excluded because they're "intended to be indefinitely reinvested outside the U.S." – SEC Annual 10-K, 2011 $8.283 billon $14.03 billion 9.8%. APPLE'S GLOBAL TAX RATE BUILDING AN IMAGE ADVERTISING EXPENSES ANNUAL SPENDING ON ADVERTISING 2009 $501 Million 2010 $691 Million 2011 $933 Million ADVERTISING FOR KEY PRODUCTS IPHONE (SINCE 2007) $647 Million IPAD >$457 Million D.C. LOBBYING FACEROOK $816k INTEL $882k AMAZON $900k MICAOSOFT $1.8 Million GOOGLE $5 Million APPLE $500k THE REAL COST OF APPLE PRODUCTS $199 $347.55 BILL OF MATERIALS BILL OF MATERIALS MANUFACTURING COST $10.75 15.4% MANUFACTURING COST OF PRICE WITHOUT CONTRACT %3D 57% 16 GB IPHONE 5 OF RETAIL PRICE HEY, SO YOU MIGHT NOT HAVE A MULTI-MILLION-DOLLAR SALARY. BUT AT LEAST YOU DONT PAY $14 BILLION IN TAXES, RIGHT? 16 GB IPAD 3RD GENERATION WIFI+46 Brought to you by: MASTER-BUSINESS-ADMINISTRATION.ORG SOURCES http:// salary_n_1676660.html billions-in-taxes-2012-4 Page2.html Teardowns/News/pages/iPhone5-Carries-$199-BOM-Virtual-Teardown-Reveak.aspx BITE APPLE SPENDS ITS MONEY

A Bite Out of Apple

shared by absolutelytrue on Jan 25
How the world's most valuable company spends its money.


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