Science Work

Apple’s investments outside R&D spur innovation

Apple Inc., together with subsidiaries, designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players; and sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Its products and services include iPhone, iPad, Mac, iPod, Apple TV, the iOS and Mac OS X operating systems, iCloud, and various accessory and support offerings, as well as a range of consumer and professional software applications. The company sells its products and services to consumers, small and mid-sized business, education, enterprise, and government customers through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In addition, it offers various third-party iPhone, iPad, Mac, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals, through its online and retail stores; and digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store. As of September 24, 2011, the company had 357 retail stores, including 245 stores in the United States and 112 stores internationally. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.

Net sales £39,186 £24,667     £85,519     £51,408
Cost of sales   £20,622     £14,449     £46,252     £30,892
Gross margin   £18,564   £10,218     £39,267     £20,516
Research and development   £841   £581     £1,599     £1,156
Selling, general and administrative £ 2,339     £1,763     £4,944     £3,659
Total operating expenses £3,180 £2,344     £6,543     £4,815
Operating income   £15,384     £7,874     £32,724     £15,701
Other income and expense £148 26     £285     £162
Income before provision...