Apple is growing in breadth
Over the last four fiscal quarters (up to and including June), Apple’s revenue amounted to $ 100 billion. During this time, the company’s revenue grew by 75.73%, and net profit – by 90.2%.
This success is due not only to the sales of the iPhone and iPad, which accounted for 61% of the 100 billion earned, but also to the expansion of sales coverage.
Management at Apple is based on the geographical principle. This article provides an overview of the company’s sales by region for the first 9 months of the current fiscal year, up to and including June. During this period, revenue grew by 78.2% and amounted to $79,979 billion. Production profit increased by 93.85%, and net profit increased by 96.2%, compared to the same period of the previous year. Thanks to the successful pricing policy of the company, no more than 9% of profit was spent on operating expenses in the 3rd quarter, as a result, the level of net profit exceeded the level of income received.
Of course, Apple’s revenue growth can easily be explained by the popularity of its products. But do not forget about another important factor – expansion into new regions, signing contracts with new mobile operators and opening new points of sale.
The graph and table show the level of Apple’s production profit in different regions for fiscal years 2010 and 2011.
Apple: growing in breadthIn the first 9 months of the current fiscal year, Apple’s revenue in the Asia-Pacific region, excluding Japan, increased by 191% and amounted to $ 16,062 billion.
Due to this, the region’s share in the company’s profit increased to 20%, in the same period last year this figure was only 12.3%. Contracts with new mobile operators and high iPad sales allowed us to significantly exceed last year’s results.
Apple Branded storesIn the first 9 months of the current fiscal year, Apple opened 327 branded stores, and in 2010, for the same period of time – only 293. The average profit of the store increased by 48% and now amounts to $ 32.6 million.
Apple branded stores not only promote the brand, but also increase sales of Macintosh computers. The company’s management has repeatedly stated that 50% of consumers who bought a Mac in a company store had not bought computers from this company before.
North and South AmericaNorth and South America in the first 9 months of the current fiscal year brought Apple (excluding retail sales) 36% of revenue – this is 65.59% more than in the same period of the previous year.
One of the reasons for this sales growth was the conclusion of an agreement with one of the leading mobile operators in the United States, Verizon. The increase in the number of mobile operators in order to attract new customers has become the main reason for Apple’s revenue growth in the most profitable region for them.
Production profitProduction profit of the company
Apple has grown in the first 9 months of the current fiscal year and now accounts for 31.36% of total revenue. The reason for this was the skillful management of current costs and high gross profit from sales. Ensuring a high gross income on the international market is the most effective way to support the growth rate of production profit, which is higher than the growth rate of the total profit of the company. The graph below shows the distribution of Apple’s profits by region over the last 9 months of the current fiscal year. Apple’s revenues are expected to increase in the Asia-Pacific region in the September quarter. Analysts also believe that profits from Apple branded stores will continue to grow in the next quarter, which will begin in less than 3 weeks.
