abstract: according to estimates apple in 2013 total revenue of $171 billion, made $14 billion more than in 2012. Yet the $5 billion profit is less than in 2012. Why the decline in revenue growth is profit? The answer is simple: with the increasing competition, apple product premium ability decline. At the same time, research and development of marketing and other related costs are rising gradually.
apple just released the 2013 fourth quarter results. From this we can from apple’s entire four quarterly earnings, to the performance of the whole year of 2013 and 2013 for apple make a contrast.
apple’s total revenue of $157 billion in 2012, including sales of the device, iPhone, iPod, Mac, online music, application and so on many from all related products, apple earned $42 billion in profit. , apple’s total revenue of $2013 in 171 billion, but profit only $37 billion.
this number, plus the fact that apple has been unable to maintain rapid growth, is apple’s shares could no longer reach the root cause of high of $700. With its $14 billion revenue growth, profit has dropped by $5 billion?
the answer is very simple.
as the smartphone and tablet market matures, apple had enjoyed high premium constantly eroded profitability in weak. Please see the following visual information:
the picture show is one of the largest two pieces of apple revenue products – the iPhone and the average selling price (ASP). We can see clearly that before 2012, the average selling price of products basically stable, from 2012 to 2013, however, decline gradually. From the Angle of consumers, apple’s products more and more “cost-effective”, but from the financial perspective, it’s profitability in the attenuation.
at the same time, apple expenditure increasing.
the proportion of cost is increased, rose from 36% in 2012 to 38.4% in 2013, which rose from $880 to $107 billion. Research and development costs soaring, only $2012 in 3.4 billion, rose to $4.5 billion in 2013. Marketing costs also rose by $800 million to $15.3 billion.
in the end, despite apple’s profit margins decline, it is only relative to the previous apple. Apple is still the world’s most earn hardware company, not one.