Apple, domestic sales of 7 trillion won last year… First Korean performance in 12 years

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Apple recorded 7.97 trillion won in sales and 111.495 billion won in operating profit in Korea last year. This is the first business performance released after 12 years in Korea.

The operating profit margin was 1.57%, which is less than one-tenth of that of Apple’s headquarters, which is usually in the 20-30% range. It is difficult to avoid controversy that it is insufficient in investment such as after-sales support (AS) infrastructure, as most of the profits are sent to the headquarters even after generating huge sales in Korea.

Apple Korea Co., Ltd. has released financial statements and audit reports including domestic performance from October 1, 2020 to September 30, last year.

Apple Korea did not disclose its audit report after changing from a limited company to a limited company in 2009. However, in accordance with the Act on External Audit (New External Audit Act), such as the revised Joint Stock Company, which came into force in November 2019, the disclosure obligation will also apply to limited companies from last year.

Prior to this, other global companies such as Netflix disclosed their sales and operating profit for the first time in Korea in April last year. The reason Apple released its audit report on the same day is because it was an accounting firm in September.

According to the audit report, Apple paid 49.423 billion won in domestic sales incentives. It is interpreted that the subsidy shared with mobile carriers when selling devices such as iPhone has more than doubled compared to the previous year in line with the launch of the 5th generation (5G) mobile communication iPhone.

Apple Korea sales increased by 24.2% compared to the previous quarter. The increase in sales of major products such as iPhone, iPad, and Macbook is analyzed to be the result of an increase in product sales. On the other hand, operating profit fell 13.3% QoQ. Net income was 124.3 billion won. 980.9 billion won in retained earnings accumulated until the end of the previous year was paid out as dividends.

The corporate tax paid by Apple Korea last year stood at 62.89 billion won.

By Park Jeong-eun, staff reporter



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