Analysis of Geographic Areas
Apple Inc. operates in 3 regions: U.S.; China (includes Hong Kong and Taiwan); and Other countries.
Area Asset Turnover
Apple Inc., asset turnover by geographic area
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| U.S. | 3.99 | 4.16 | 4.75 | 4.74 | 4.22 | 4.14 |
| China (includes Hong Kong and Taiwan) | 13.96 | 12.56 | 10.22 | 9.09 | 5.56 | 4.82 |
| Other countries | 34.85 | 36.93 | 46.09 | 44.04 | 34.53 | 31.70 |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
- U.S. Asset Turnover
- The asset turnover ratio in the U.S. showed a moderate increase from 4.14 in 2019 to a peak of 4.75 in 2022, indicating improved efficiency in utilizing assets to generate revenue during this period. However, a decline followed in 2023 and 2024, with ratios decreasing to 4.16 and then 3.99, respectively. This suggests a potential reduction in asset utilization efficiency in recent years within the U.S. market.
- China (Includes Hong Kong and Taiwan) Asset Turnover
- The asset turnover ratio in the China region demonstrated a consistent and significant upward trend over the five years analyzed. Starting from 4.82 in 2019, the ratio increased steadily each year, reaching 13.96 by 2024. This surge reflects a substantial improvement in the efficiency of asset utilization in this geographic area, suggesting strong growth and possibly enhanced operational effectiveness in the China market and its associated regions.
- Other Countries Asset Turnover
- For other countries, asset turnover ratios started relatively high at 31.7 in 2019 and increased further to a peak of 46.09 in 2022, indicating very high asset efficiency. However, from 2023 onward, there was a noticeable decline to 36.93 and then 34.85 in 2024. Despite the decrease, the ratios remain significantly elevated compared to the U.S. and China markets, implying sustained high asset productivity but with some recent weakening.
- Overall Insights
- The data reveal varying dynamics across geographic regions. The U.S. exhibits a slight downturn after peaking in 2022, China shows a strong and steady improvement throughout the period, and other countries, while maintaining the highest ratios overall, have experienced some decline after reaching a peak in 2022. These trends could reflect differences in market maturity, operational changes, or economic conditions affecting each region's asset utilization performance.
Area Asset Turnover: U.S.
Apple Inc.; U.S.; area asset turnover calculation
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 142,196) | 138,573) | 147,859) | 133,803) | 109,197) | 102,266) |
| Long-lived assets | 35,664) | 33,276) | 31,119) | 28,203) | 25,890) | 24,711) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 3.99 | 4.16 | 4.75 | 4.74 | 4.22 | 4.14 |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 142,196 ÷ 35,664 = 3.99
The financial data for the U.S. geographic area displays notable trends in net sales, long-lived assets, and area asset turnover over a six-year period.
- Net Sales
- Net sales show a generally upward trajectory from 2019 through 2024, starting at 102,266 million US dollars and peaking at 147,859 million in 2022. A notable decline is seen in 2023 to 138,573 million, followed by a slight recovery to 142,196 million in 2024. This indicates robust growth in the earlier years, with some volatility in the latest periods.
- Long-lived Assets
- Long-lived assets consistently increased each year, rising steadily from 24,711 million US dollars in 2019 to 35,664 million in 2024. This progression suggests ongoing investments in fixed assets or capital expenditures, contributing to the expansion of the asset base over the observed period.
- Area Asset Turnover
- The area asset turnover ratio, which measures net sales relative to long-lived assets, shows an initial improvement from 4.14 in 2019 to a peak of 4.75 in 2022. However, a declining trend occurs thereafter, falling to 4.16 in 2023 and further to 3.99 in 2024. This decline suggests that asset efficiency in generating sales has diminished somewhat in the most recent years despite higher asset levels.
Overall, the analysis reveals growth in net sales and asset investment in the U.S. segment, tempered by a recent reduction in sales efficiency relative to assets. The decline in the asset turnover ratio alongside growing asset values points to potential challenges in maximizing the utilization of assets during the latter part of the period.
Area Asset Turnover: China (includes Hong Kong and Taiwan)
Apple Inc.; China (includes Hong Kong and Taiwan); area asset turnover calculation
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 66,952) | 72,559) | 74,200) | 68,366) | 40,308) | 43,678) |
| Long-lived assets | 4,797) | 5,778) | 7,260) | 7,521) | 7,256) | 9,064) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 13.96 | 12.56 | 10.22 | 9.09 | 5.56 | 4.82 |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 66,952 ÷ 4,797 = 13.96
The data for the "China (includes Hong Kong and Taiwan)" geographic area demonstrates notable fluctuations and trends across the examined periods.
- Net Sales
- The net sales exhibit variability over the years. Starting at 43,678 million US dollars in 2019, there is a decline in 2020 to 40,308 million. However, 2021 shows a significant increase to 68,366 million, continuing to rise slightly in 2022 reaching 74,200 million. Subsequently, net sales slightly decrease to 72,559 million in 2023 and further decline to 66,952 million in 2024. This pattern indicates an initial contraction followed by a strong recovery and moderate decrease toward the end of the period.
- Long-lived Assets
- Long-lived assets trend downward during the period under review. Starting from 9,064 million US dollars in 2019, assets reduce consistently year-over-year to 4,797 million in 2024. The most pronounced decreases occur post-2021, with a reduction from 7,521 million in 2021 to 4,797 million in 2024, suggesting divestment, revaluation, or disposal of long-lived assets in the region.
- Area Asset Turnover
- The area asset turnover ratio, reflecting the efficiency in utilizing assets to generate sales, shows a rising trajectory each year. Starting at 4.82 in 2019, it increases steadily, reaching 13.96 in 2024. This marked improvement suggests enhanced effectiveness in asset usage and operational efficiency over time, potentially compensating for the reduction in long-lived assets.
Overall, the data reveals an initial dip in sales followed by a pronounced recovery and slight regression, a continuous reduction in asset base, and a consistent increase in asset turnover ratio. These trends suggest a strategic shift towards more efficient asset utilization amid fluctuating sales performance in the China geographic segment.
Area Asset Turnover: Other countries
Apple Inc.; Other countries; area asset turnover calculation
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 181,887) | 172,153) | 172,269) | 163,648) | 125,010) | 114,230) |
| Long-lived assets | 5,219) | 4,661) | 3,738) | 3,716) | 3,620) | 3,603) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 34.85 | 36.93 | 46.09 | 44.04 | 34.53 | 31.70 |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 181,887 ÷ 5,219 = 34.85
- Net Sales
- Net sales demonstrated a consistent upward trend over the six-year period, increasing from 114,230 million USD in 2019 to 181,887 million USD in 2024. This reflects a significant growth in revenue from the "Other countries" geographic segment, with the most notable jump occurring between 2020 and 2021, where sales surged by approximately 30.9%. Sales remained relatively stable from 2022 to 2023 before rising again in 2024.
- Long-Lived Assets
- Long-lived assets showed a gradual increase from 3,603 million USD in 2019 to 5,219 million USD in 2024. The asset base remained relatively stable from 2019 through 2022, with only modest annual increments. However, from 2022 onward, there was a sharper rise, particularly between 2022 and 2024, where assets increased by approximately 39.7%, indicating potentially higher investment or capital expenditure in this region during the latter years.
- Area Asset Turnover
- The area asset turnover ratio showed a rise from 31.7 in 2019 to a peak of 46.09 in 2022, reflecting improved efficiency in utilizing assets to generate sales over the initial period. However, this efficiency declined notably in the following years, dropping to 34.85 by 2024. Despite the increased asset base, the reduced turnover ratio suggests that the rapid asset investment post-2022 did not proportionally translate into higher sales, indicating a potential area for operational efficiency review.
Net sales
Apple Inc., net sales by geographic area
US$ in millions
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| U.S. | 142,196) | 138,573) | 147,859) | 133,803) | 109,197) | 102,266) |
| China (includes Hong Kong and Taiwan) | 66,952) | 72,559) | 74,200) | 68,366) | 40,308) | 43,678) |
| Other countries | 181,887) | 172,153) | 172,269) | 163,648) | 125,010) | 114,230) |
| Total | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
The data reveals distinct trends in net sales across three geographic areas over a six-year period ending in 2024.
- U.S. Market
- Net sales demonstrate a consistent upward trajectory from 2019 through 2022, rising from 102,266 million USD to 147,859 million USD, marking a significant growth. However, in 2023, there is a noticeable decline to 138,573 million USD, followed by a modest recovery to 142,196 million USD in 2024. Overall, the U.S. market shows strong expansion but with some recent volatility.
- China (includes Hong Kong and Taiwan)
- Sales in China exhibit a fluctuating pattern. Initially, sales decreased from 43,678 million USD in 2019 to 40,308 million USD in 2020. This was followed by a substantial surge to 68,366 million USD in 2021 and continued growth in 2022 reaching 74,200 million USD. After peaking in 2022, sales declined in subsequent years, falling to 72,559 million USD in 2023 and further to 66,952 million USD in 2024. This indicates an overall recovery after the initial dip, but with a recent downward trend.
- Other Countries
- The “Other countries” category shows consistent and strong growth throughout the period. Sales increased each year from 114,230 million USD in 2019 to 181,887 million USD in 2024. The growth is steady and significant, with no evidence of decline or stagnation, indicating expanding market presence outside of the U.S. and China.
- Total Net Sales
- Total net sales mirror the combined effects of the geographic trends. There is a pronounced increase from 260,174 million USD in 2019 to a peak of 394,328 million USD in 2022. Following this peak, total sales slightly decreased to 383,285 million USD in 2023 but recovered to 391,035 million USD in 2024. This overall growth suggests expanding revenues, although the slowdown in growth after 2022 highlights emerging challenges or market saturation in certain areas.
Long-lived assets
Apple Inc., long-lived assets by geographic area
US$ in millions
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| U.S. | 35,664) | 33,276) | 31,119) | 28,203) | 25,890) | 24,711) |
| China (includes Hong Kong and Taiwan) | 4,797) | 5,778) | 7,260) | 7,521) | 7,256) | 9,064) |
| Other countries | 5,219) | 4,661) | 3,738) | 3,716) | 3,620) | 3,603) |
| Total | 45,680) | 43,715) | 42,117) | 39,440) | 36,766) | 37,378) |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
- U.S. Long-Lived Assets
- The long-lived assets in the U.S. show a consistent upward trend over the six-year period. Starting at $24,711 million in 2019, the value increased each year, reaching $35,664 million by 2024. This represents an overall increase of approximately 44.3%, indicating sustained investment or asset growth within the U.S. geographic area.
- China (includes Hong Kong and Taiwan) Long-Lived Assets
- The long-lived assets in China, including Hong Kong and Taiwan, exhibit a downward trajectory. The value declined sharply from $9,064 million in 2019 to $4,797 million in 2024, marking a reduction of nearly 47.1%. The decrease was steady over the years, with noticeable drops after 2021, reflecting either asset disposals, impairments, or reduced investment in this region.
- Other Countries Long-Lived Assets
- Assets categorized under 'Other countries' experienced a gradual increase. Starting from $3,603 million in 2019, the value rose to $5,219 million in 2024, an approximate growth of 44.9%. This steady rise suggests growing asset allocation in other international markets outside the U.S. and China.
- Total Long-Lived Assets
- The overall total of long-lived assets shows a positive upward trend, increasing from $37,378 million in 2019 to $45,680 million in 2024, which is an increase of about 22.2%. Despite the significant decline in the China segment, the total asset growth is driven by substantial increases in the U.S. and other countries, indicating geographic diversification and shifting asset allocation priorities.
- Summary
- There is a clear strategic shift in geographic allocation of long-lived assets. The U.S. remains the dominant region with continuous asset growth. China’s assets have been declining significantly, potentially signaling reduced focus or challenges in that market. Conversely, investments in other international locations have been increasing steadily, suggesting a diversification effort outside the traditional core markets. Overall, total assets have grown, reflecting a positive expansion or reinvestment trend despite regional disparities.