Summary
Apple Inc.'s 2010 10-K filing reveals a period of exceptional growth, driven primarily by the burgeoning iPhone and iPad businesses. Net sales surged by an impressive 52% to $65.2 billion, fueled by a nearly doubling of iPhone sales and the highly successful launch of the iPad, which contributed $5.0 billion in its inaugural year. The company demonstrated strong operational execution across all segments, including a significant rebound in retail store performance. Despite increasing competition and some component supply risks, Apple maintained robust profitability with a gross margin of 39.4% and healthy operating income. The company's strategic investments in research and development, coupled with its integrated product ecosystem and strong brand loyalty, position it well for continued innovation and market leadership.
Financial Highlights
48 data points| Revenue | $65.22B |
| Cost of Revenue | $39.54B |
| Gross Profit | $25.68B |
| R&D Expenses | $1.78B |
| SG&A Expenses | $5.52B |
| Operating Expenses | $7.30B |
| Operating Income | $18.39B |
| Net Income | $14.01B |
| EPS (Basic) | $0.55 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 25.46B |
| Shares Outstanding (Diluted) | 25.89B |
Key Highlights
- 1Net sales increased by 52% year-over-year to $65.2 billion, demonstrating robust growth across all product categories.
- 2iPhone sales more than doubled, reaching $25.2 billion, and represented 39% of total net sales, highlighting its increasing dominance in the smartphone market.
- 3The newly launched iPad generated $5.0 billion in sales within its first year, indicating strong market acceptance and potential for future growth.
- 4Mac sales saw a significant 26% increase, driven by strong demand for both portable and desktop models, indicating a resurgence in Apple's personal computer business.
- 5The company maintained healthy profitability with a gross margin of 39.4%, despite the introduction of new products with higher cost structures.
- 6Apple continued to expand its retail footprint, with net sales from its retail stores increasing by 47% to $9.8 billion, supported by the successful launch of the iPad.
- 7Research and development expenses increased by 34% to $1.8 billion, underscoring the company's commitment to innovation and new product development.