There is no doubt that Apple is one of the most successful and valuable companies in the world. But how does this big and valuable company spend its money? Master Business has done a breakdown of Apple, Inc’s expenses and gives us some clues about its formula for success! Breaking its own records Apple recorded record revenue and profit in the fourth-quarter of the 2012 financial year after selling 26.9 million iPhones – a 58% growth over the same quarter in 2011. The total operating expenses for the financial year 2012 were $13.421 billion. Net income before taxes for the financial year 2012 was $55.763 billion, net sales were $156.508 billion (higher than 2011 when they were $108.249 billion). Spending on the Increase Apple has grown and developed incredibly in the last few years, but and have invested heavily to make this possible. In “Selling, general and administrative” areas, they have invested $10.04 billion in the 2012 financial year, against $7.599 billion in 2011, $5.517 billion in 2010, $4.149 billion in 2009 and $3.761 billion in 2009. Apple has invested significantly in research and development as well. In the 2012 financial year they spent $3.381 billion, against $2.429 billion in 2011, $1.782 billion in 2010, $1.333 billion in 2009, and $1.109 billion in 2008. However, it’s worth mentioning that Microsoft, Intel, International Business Machines (IBM), Cisco Systems and Google have invested more than Apple in research and development. A few key expenses If you are interested in other details, here are a few key expenses:
- In 2011, the average pay for Bay Area/Silicon Valley CEOs was $3 million. With his stock options, Apple CEO Tim Cook’s pay came in at a staggering $378 million.
- In 2012, there was a 94% increase in data center spending from 2011, with an estimated $7.04 billion of expenses. However, this is expected to rise only 7% in 2013.
- $614 million was budgeted for retail stores in 2011, while the amount increased to $900 million in 2012.
- $7.1 billion was budgeted in 2012 for product tooling and manufacturing process equipment, corporate infrastructure and facilities and the information systems enhancements, software and hardware as well.