10-Q Watch: Apple Ups Headcount And Spending On R&D; Fadell Will Receive Salary For Advisory Role
This story was written by Tricia Duryee.
Apple (NSDQ: AAPL) filed its annual report for the 2008 fiscal year with the SEC today, and after combing through the 93-page document, we found a few items worth noting. Here's the highlights:
Employees: At the end the year, the company had about 32,000 full-time equivalent employees and an additional 3,100 temporary equivalent employees and contractors. That increased tremendously from the year ago period when the company employed 21,600 full-time employees, and 2,100 temps. This may have been driven in part by new store openings. The Company opened 50 new retail stores in 2008, bringing the total number of open stores to 247 as of September 27, 2008.
On Tony Fadell's departure: On Monday, we learned that Fadell, Apple's SVP of the iPod division, was leaving for personal reasons. In his new role, he will serve as special advisor to Steve Jobs. Fadell will receive a salary of $300,000 annually, and will be entitled to bonus and other health and welfare benefits generally available to other senior managers until March 24, 2010.
Advertising and R&D budgets increase: The Company's R&D budget continues to increase year-over-year. In 2008, it totaled $1.1 billion, increasing 41 percent from $782 million in 2007, which compared to $712 million in 2006. "To remain competitive, the company believes that increased investment in research and development and marketing and advertising is necessary to maintain or expand its position in the markets where it competes..."
International mix: In 2008, Apple became less dominant on the Americas segment. Although no market besides the U.S. comprised of more than 10 percent of the company's sales, the Americas segment consisted of 45 percent of revenues, dropping from 48 percent a year ago. Apple breaks-down revenues for Europe, Japan and Asia Pacific. In 2008, net sales in Europe increased 40 percent over 2007, but remains 23 percent of total net sales. Japan net sales increased $427 million or 39 percent compared to 2007. Sales in the company's "other segments," which includes Asia Pacific, also experienced an increase. Of particular note is iTunes sales in Asia Pacific, which grew by 109 percent.
By Tricia Duryee