Summary
Apple Inc.'s 2015 10-K filing highlights a robust fiscal year characterized by significant revenue growth, largely driven by a remarkable 52% increase in iPhone sales, which constituted 66% of total net sales. This surge in iPhone performance, particularly with the introduction of the iPhone 6 and 6 Plus, overshadowed a decline in iPad sales, attributed to longer repurchase cycles and potential cannibalization. Geographically, Greater China emerged as a standout performer, with an impressive 84% year-over-year net sales increase, underscoring its growing importance. The company also saw growth in Services and Other Products, with the new Apple Watch contributing to the latter. Financially, Apple demonstrated strong operational efficiency, with gross margin increasing to 40.1% from 38.6% in the prior year, benefiting from a favorable product mix and improved leverage on fixed costs. The company continued its aggressive capital return program, authorizing $140 billion for share repurchases and significantly increasing its quarterly dividend. Despite a strong operating performance, the company acknowledged risks related to intense competition, supply chain dependencies, currency fluctuations, and the ongoing need for innovation to maintain its market leadership.
Financial Highlights
58 data points| Revenue | $233.72B |
| Cost of Revenue | $140.09B |
| Gross Profit | $93.63B |
| R&D Expenses | $8.07B |
| SG&A Expenses | $14.33B |
| Operating Expenses | $22.40B |
| Operating Income | $71.23B |
| Interest Expense | $733.00M |
| Net Income | $53.39B |
| EPS (Basic) | $2.32 |
| EPS (Diluted) | $2.31 |
| Shares Outstanding (Basic) | 23.01B |
| Shares Outstanding (Diluted) | 23.17B |
Key Highlights
- 1Total net sales increased by 28% to $233.7 billion in fiscal year 2015, primarily driven by a 52% increase in iPhone net sales.
- 2iPhone sales constituted 66% of total net sales, with unit sales up 37% year-over-year, indicating strong customer demand for the iPhone 6 and 6 Plus models.
- 3Greater China showed exceptional growth, with net sales increasing by 84% year-over-year, highlighting its strategic importance.
- 4Gross margin improved to 40.1% from 38.6% in fiscal year 2014, driven by product mix and cost leverage.
- 5Apple continued its substantial capital return program, announcing an increase in its share repurchase authorization to $140 billion and increasing its quarterly dividend.
- 6iPad sales experienced a 23% decline in net sales, attributed to longer repurchase cycles and potential cannibalization by other Apple products.
- 7Research and Development (R&D) expenses increased significantly by 34% to $8.1 billion, reflecting the company's commitment to innovation and new product development.