Annual Sales of 7.0971 Trillion KRW... Operating Profit of 111.5 Billion KRW
22.6% of Total Asian Sales Excluding Japan and Greater China
1 Trillion KRW Accumulated Retained Earnings Simultaneously Remitted to Headquarters
[Asia Economy Reporter Cha Min-young] Apple Korea recorded sales of 7.0972 trillion won last year, marking a 24.2% increase compared to the previous year. This accounts for more than one-fifth of the sales generated in the Asia-Pacific region, excluding Japan and Greater China.
According to the audit report of Apple Korea LLC disclosed on the 12th, sales in Korea from October 1, 2020, to September 30, 2021, amounted to 7,097,197,000,000 won. This represents a 24.2% increase compared to the previous period.
During the same period, operating profit was 111,495,000,000 won, a 13.3% decrease from the previous period. Net income was 124,277,000,000 won. The operating profit margin was only 1.57%.
Annual sales of 7 trillion won is among the highest levels in the Asia region. According to Apple headquarters' global sales by region for the fiscal year, sales in the Asia-Pacific region, excluding separately accounted Japan and Greater China, amounted to 26.356 billion USD (approximately 31.4 trillion won). Korea's sales account for 22.6% of this total.
Apple stated that sales consisted of electronic devices such as iPhones, iPads, MacBooks, services, and other product sales. The strong sales of smartphones like the iPhone 13 last year, along with service revenue from operating the mobile app market, the App Store, appear to have been reflected. Apple's service sales have been on the rise annually. Since the recent launch of the online video service (OTT) 'Apple TV Plus (+)' in Korea, related sales are expected to be additionally reflected from the 2022 fiscal year.
Nearly 1 trillion won in retained earnings carried over was also fully remitted to headquarters last year through dividends. Apple, which did not pay dividends in the previous period, allocated about 980.9 billion won, the entire accumulated retained earnings, as dividends for the current period. This amount corresponds to 7.9 times the recent net income.
Meanwhile, this is the first time in 12 years since 2009 that Apple has disclosed an audit report in Korea. Apple Korea did not disclose audit reports after changing from a corporation to a limited liability company in 2009. However, following the revised External Audit Act for corporations, which took effect in November 2019, limited liability companies have been required to disclose reports starting last year.
Apple disclosed the audit report on this day because it is a September fiscal year-end company with a different accounting year basis. This differs from other global companies such as Netflix, which have different fiscal year standards.
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