Apple Annual Finance Report Highlights
- November 20th, 2007
- Apple Financials, Apple Legal News, Apple News, Apple Retail Stores, Steve Jobs
- Alex Brooks
Apple has recently published its annual report for the 2007 financial year (PDF) to the end of September.
The report reveals the company’s concerns over new suppliers, component supply concerns, major retail expansion and rising rewards for executives.
The report goes into detail about Apple’s record-breaking year as well as warning that CEO Steve Jobs may see his annual compensation rise.
“Because Mr Jobs’s continued leadership is critical to Apple, the Compensation Committee is considering additional compensation arrangements for him,” the filing states.
Jobs is famously paid a $1 salary but Apple also pays for the maintenance and running costs of his private Gulfstream Jet which was gifted to him in 1999. Apple paid out $776,000 in maintenance on the jet in the financial year, up from $202,000 in 2006 and down on the $1.1 million spent in 2005.
Also of note, Steve Jobs did not received a free iPhone from the company unlike every other Apple employee, the chief did receive an iPod but it is unknown whether it was a gift or reward.
Steve Jobs remains Apple’s second largest share holder with 5.5 million shares, the report states that Jobs has never sold any of them.
Jobs took advantage of a 30,000 share grant provided to him shortly after his return in 1997, but appeared to only do so as the grant expiry date was approaching. The surge in Apple’s share numbers and stock value since the options were granted a decade ago gave the executive 120,000 new shares worth more than $14.6 million.
At the end of Apple’s fiscal 2007 year it had opened a total of 197 Apple Retail Stores across the US, UK, Canada, Japan and Italy.
Apple’s employee base also shot up by around 4,000 employees; jumping from 17,787 to 21,600, most of the new hires in the retail operation.
The company’s hold on the flash memory market remains strong, the report reveals. Apple paid its flash suppliers a $1.25bn advance in 2006, but as of 29 September 2007, just $208m of the advance had been spent – despite the growing demand for flash.
Apple generated $24b in revenue for 2007, returning $3.5bn in net profit. It generated $19.3bn in revenue and $2bn in profit in 2006.
The report also confirms the company invested $782 million in research and development and $467 million on advertising during the 2007 financial year.