updated 10:20 am EDT, Wed October 28, 2009
Company makes gains in iTunes, losses in iPods
Apple has published an official 10-K statement for its 2009 fiscal year, revealing some broader trends. The company for instance sold 54 million iPods, 1 percent less than in 2008; the result was more damaging in financial terms, bringing in 12 percent less revenue at $8.091 billion. Lower selling prices are said to be blame, as each iPod is estimated to have brought in an average of $149, as compared to $167 in 2008.
iTunes however is said to be experiencing "double digit" growth in all areas, something Apple attributes to several factors. Among these is a growing base of iPod and iPhone users, which in turn have access to an increasing amount of audio and video at the iTunes Store, along with an expanding number of apps at the App Store. All such material is recorded as generating $4.036 billion in 2009, up 21 percent.
Gross margin is expected to decline in the future, as result of lower prices, a higher US dollar and greater component and logistics costs, as well as future product transitions. The statement also suggests that American sales are becoming less important to Apple, having shrunk from 57 to 54 percent.
Significant expenses on the company's ledgers include research and development, which cost the company $1.3 billion, 20 percent more than in 2008. Snow Leopard alone is said to have required $71 million, in spite of being a minor upgrade. Advertising expenses rose from $486 million to $501 million, while private jetplane allowances for CEO Steve Jobs fell from $871,000 to $4,000. This is largely explainable as a result of the executive's medical problems, which left him unable to work for several months.
Other major expenses include payments of $500 million to LG for LCDs, and another $500 million to Toshiba for flash memory.