Thursday, May 27, 2021

The NYT published an opinion piece this morning, The Apple Tax is Rotten by Farhad Manjoo.  The piece focuses on the recent court case (judgment pending) regarding the App Store.  We wanted to learn more.  Please keep in mind that our goal is not to critique the piece or the author.  We thought we ought to see how quickly we could inform ourselves, and our users about what could be learned about financial disclosures and particularly segments from Apple Inc’s latest filings, especially because that is what we do here at Calcbench.  

So, we dug right in.  

We went to the Disclosures section of Calcbench and looked up Apple’s segment disclosure to learn more.  It looks like this:

Note that there is nothing about the App Store here.  The only thing listed are geographies.  So, we continued and found that to obtain product level revenues, we need to go to the Revenue Recognition disclosure, where Apple breaks out the product revenue. 

Once you get there ( below picture), you can either download the data directly, or use the Calcbench Excel Add in to build some formulas and create a time-series.  

Here’s the breakdown of product revenues in dollars as well as percent of total.  Please note that the Apple Inc fiscal year ends around September 30 so the last bar in our time series graph represents the 6-month period ending on March 31, 2021. 

Quick conclusion, the iPhone is still king, but the services revenue is significant and growing in dollar terms as well as a piece of the overall pie (in $ B) .  

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