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May 8th, 2004

Lesser-known facts from Apple’s earnings statement (TUAW)

The attention-grabbing numbers from Apple’s most recent earnings statement
have already made the rounds — US$46 billion in revenue, net profit of $13
billion, 37 million iPhones sold — and all of that within three months. Apple
didn’t just turn in record-breaking performance for a tech company; only Exxon
has ever managed to have a more profitable quarter than the one Apple just
reported.

Combing through the spreadsheets on Apple’s earnings statement provides some
additional insight into the company’s overall performance, where its strengths
and weaknesses lie, and where the company might be headed in the future. These
numbers aren’t as headline-grabbing as Apple’s profits or unit sales, but they
tell an important story all the same.

### Research and Development

In three months, Apple’s expenditures on R&D totalled a staggering $758
million. This compares to expenditures of “only” $575 million the year before.
To get an idea of how much money Apple’s pouring into R&D, compare its three-
month expenditures to the production costs of _Avatar_, one of the most
expensive films ever produced. _Avatar_ cost $237 million; in just three
months, Apple’s R&D expenditures are enough to finance an entire _Avatar_
trilogy.

The $575 million in …

TUAW

Clerks – 37

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