Summary
Apple Inc.'s 2009 10-K report highlights a period of strong growth, primarily driven by the nascent but rapidly expanding iPhone business. Despite a challenging economic environment, the company demonstrated resilience, with total net sales increasing by 12% to $36.5 billion. The iPhone segment saw an extraordinary 266% surge in revenue, fueled by expanded distribution and the introduction of the iPhone 3GS. This growth, alongside continued strong performance in music-related products and services (like the iTunes Store and App Store), significantly offset a decline in Mac and iPod sales. The company's strategy of controlling hardware, software, and services integration, coupled with significant investments in R&D and retail expansion, continues to be a key differentiator. Financially, Apple maintained a robust cash position, ending the year with over $33 billion in cash, cash equivalents, and marketable securities, with no long-term debt. The company's gross margin percentage improved to 36.0%, reflecting lower component costs and a favorable sales mix. However, management anticipates future gross margin pressures due to product transitions and component cost fluctuations.
Financial Highlights
47 data points| Revenue | $42.91B |
| Cost of Revenue | $25.68B |
| Gross Profit | $17.22B |
| R&D Expenses | $1.33B |
| SG&A Expenses | $4.15B |
| Operating Expenses | $5.48B |
| Operating Income | $11.74B |
| Net Income | $8.23B |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.32 |
| Shares Outstanding (Basic) | 25.00B |
| Shares Outstanding (Diluted) | 25.40B |
Key Highlights
- 1iPhone revenue experienced explosive growth of 266%, reaching $6.8 billion, driven by expanded distribution and the launch of the iPhone 3GS.
- 2Total net sales increased by 12% to $36.5 billion, showcasing resilience despite economic headwinds.
- 3Mac sales declined 3% year-over-year, with lower average selling prices impacting revenue despite a 7% increase in unit sales.
- 4iPod sales decreased by 12% in revenue, with a slight 1% dip in unit sales, also affected by lower average selling prices.
- 5The iTunes Store and App Store continued to show strong growth, contributing significantly to the 'other music related products and services' category, which grew 21%.
- 6Apple maintained a very strong liquidity position, ending the fiscal year with over $33.9 billion in cash, cash equivalents, and marketable securities, with no outstanding long-term debt.
- 7Gross margin percentage improved to 36.0% from 34.3% in the prior year, driven by lower costs and a favorable product mix, though future declines are anticipated.