Every year Apple files an annual report with the SEC. Today, Apple filed its annual report for 2008, and after digging through 93-page release, Tricia Duryee from
Although the entire document is actually a very interesting read, if you simply don’t have the patience or nerve to skim through the entire 93 page document, major notes of interest are listed below.
Whether you are a modest shareholder in the company, investor, loyal fan or have been getting interested in the company policies and practices, the annual SEC report is a good chance to get “in-the-know” on actual numbers and performance results directly from Cupertino.
• Employees: At the end the year, the company had about 32,000 full-time equivalent employees and an additional 3,100 temporary equivalent employees and contractors. That increased tremendously from the year ago period when the company employed 21,600 full-time employees, and 2,100 temps. This may have been driven in part by new store openings. The Company opened 50 new retail stores in 2008, bringing the total number of open stores to 247 as of September 27, 2008.
• On Tony Fadell’s departure: On Monday, we learned that Fadell, Apple’s SVP of the iPod division, was leaving for personal reasons. In his new role, he will serve as special advisor to Steve Jobs. Fadell will receive a salary of $300,000 annually, and will be entitled to bonus and other health and welfare benefits generally available to other senior managers until March 24, 2010.
• Advertising and R&D budgets increase: The Company’s R&D budget continues to increase year-over-year. In 2008, it totaled $1.1 billion, increasing 41 percent from $782 million in 2007, which compared to $712 million in 2006. “To remain competitive, the company believes that increased investment in research and development and marketing and advertising is necessary to maintain or expand its position in the markets where it competes…”
• International mix: In 2008, Apple became less dominant on the Americas segment. Although no market besides the U.S. comprised of more than 10 percent of the company’s sales, the Americas segment consisted of 45 percent of revenues, dropping from 48 percent a year ago. Apple breaks-down revenues for Europe, Japan and Asia Pacific. In 2008, net sales in Europe increased 40 percent over 2007, but remains 23 percent of total net sales. Japan net sales increased $427 million or 39 percent compared to 2007. Sales in the company’s “other segments,” which includes Asia Pacific, also experienced an increase. Of particular note is iTunes sales in Asia Pacific, which grew by 109 percent.
Other interesting tidbits not mentioned above surround and relate to Apple’s relentless stance on patenting their technology, software and products. The reports explains that Apple is “vigorously defending more than 21 patent infringement cases, 13 of which were filed during fiscal 2008.” The report goes onto explain the outcome possibilities to various legal situations as well as the iPhone’s position in the cut-throat mobile market.
With the June 2007 introduction of iPhone, the Company has begun to compete with mobile communication device companies that hold significant patent portfolios. Regardless of the scope or validity of such patents or the merits of any potential patent claims by competitors, the Company may have to engage in protracted litigation, enter into expensive agreements or settlements and/or modify its products. Any of these events could have a material adverse impact on the Company’s financial condition and operating results.
In early September, we reported about Apple’s ultimate decision to settle and pay $14 million to resolve the 20 outstanding investor derivative law suites over backdated stock options. While a publicly traded company
You can find the entire SEC filing in Apple’s Investor Relations section here.
[MacDailyNews via paidContent.org]
One Comment to “Apple’s Annual SEC Filing: Advertising, R&D Budget Increase, Patents”
Surprisingly, $1.1 Billion for an R&D budget doesn’t seem like that much. I thought they’d be up near $3 B a year at least.
Reply