Saturday, September 3, 2011

Apple's Expanding Global Reach

Over the most recent four fiscal quarters ended in June, Apple reached $100 billion in revenue. In this four-quarter period revenue rose at the rate of 75.73% and eps rose 90.2%. Apple's revenue growth is fueled not only by the popular iPhone and iPad which accounted for 61% of the $100 billion in revenue, it's also fueled by a broadening of the company's global reach.
Apple manages its business on a geographic basis. In this article I'm providing an overview of Apple's sales by region for the first nine months of the current fiscal year ended in June. During this nine-month period revenue rose 78.2% to $79.979 billion and operating income increased 93.85% leading to an eps gain of 96.2% over the prior-year period. Apple's remarkable cost discipline kept operating expenses under 9% of revenue in the June quarter and sustains the rates of eps growth above the rates of growth in revenue.

While it's easy to view Apple and Apple's revenue and earnings growth as a function solely of the company's popular products, further study indicates the company's expanding global distribution of products, including new iPhone carriers and new retail stores are important components of the company's continuing success.

The graph and table data below detail sales and operating income by region and illustrate Apple's broadening global reach as the iPhone, iPad and Macintosh line of personal computers are made available to a growing number of the world's consumers. 



Revenue Thru 
Revenue Thru
% YOY
Operating
Operating
% YOY
Region
6/25/2011
6/26/2010
Gain
Income 2011
Income 2010
Gain







Americas
28,667
17,312
65.59%
10,250
5,482
86.98%
Europe
20,381
13,234
54.00%
8,414
5,457
54.19%
Japan
4,326
2,580
67.67%
1,996
1,185
68.44%
Asia-Pacific
16,062
5,524
190.77%
6,869
2,553
169.06%
Retail
10,543
6,232
69.18%
2,665
1,447
84.17%







Total
79,979
44,882
78.20%
30,194
16,124
87.26%







Stock-Based Compensation Expense
Other Corporate Expenses, net
-870
-655

-4,244
-2,531








Total Operating Income


25,080
12,938
93.85%