Apple New Zealand’s sales surge towards $1 billion

Apple’s New Zealand business appears to be booming, with sales up for the year ended 26 September 2020.

Local subsidiary Apple Sales New Zealand reported revenues of $965.5 million for the year, up from $838.2 million in 2019.

Cost of sales, however, were also well up, from $800.6 million to $925.1 million. Despite that Apple Sales NZ reported a profit of $23.4 million, up from $21.6 million.

The company paid $8 million in tax, down from $8.3 million for the year.

There was no sign in the financial statements of the kinds of tax disputes that have dogged Oracle, Microsoft and Cisco in New Zealand in recent years.

Globally, Apple has been one of the beneficiaries of the COVID-19 pandemic, despite store closures, as users and businesses updated their devices, services and associated technologies to support the shift to remote working.

The overall company posted record sales of US$274.5 billion in 2020, up 5.5 per cent on 2019.

However, the local subsidiary outpaced its parent in growth terms, recording a revenue lift of over 15 per cent.

During the year, Apple engineered a successful launch of its new iPhone SE in April but was forced to delay the launch of its new iPhone 12.

In August, Apple became the first US company to reach a valuation of US$2 trillion.

Apple bought local wireless charging startup PowerbyProxi in 2017 for an undisclosed sum known to be more than $100 million.

Apple Sales NZ reported total salaries and wages paid of just under $2 million, a shade up on 2019.

Locally, Apple products are distributed by Exeed and Ingram Micro.