Story image

Apple NZ almost doubles profit... pays $3.9m tax

05 Feb 14

Apple Sales New Zealand, the local unit of the iPad and iPod maker, almost doubled annual profit on largely flat sales, while extracting a dividend that eclipsed earnings.

Net profit jumped to $10.5 million in the 12 months ended Sept. 28, from $5.5 million a year earlier, while sales slipped 1.5 percent to $565.6 million, according to the company's financial statements lodged with the Companies Office.

The local unit of the world's biggest tech company paid income tax of $3.9 million in the year, up from $2.5 million in 2012. Apple is one of a number high-profile multinational companies criticised for minimising tax by routing profits through offshore subsidiaries.

The Organisation for Economic Development is discussing measures to clamp down on such arrangements, and Revenue Minister Todd McClay yesterday said New Zealand tax department officials will be participating in the Paris-based talks this week.

Apple NZ's accounts show the local unit was flush with cash during the year, with cash and equivalents rising to $26.5 million as at Sept. 28 from $4.3 million a year earlier. The company paid a $14.8 million dividend in March last year, its first since the 2010 financial year, when it returned $33 million to its parent.

The bulk of Apple NZ's revenue went to related parties in the global group. It spent $531.5 million buying inventory from related parties, down from $539.2 million in 2012. Its total cost of sales was $541.4 million, leaving it with a gross margin of 4.1 percent in the 2013 year, slightly wider than the 3.4 percent margin a year earlier.

Apple NZ sold $552.8 million of goods in the 2013 year, down from $561.3 million a year earlier, while service fee income rose to $11.9 million from $9.7 million.

By Paul McBeth - BusinessDesk

Proofpoint launches feature to identify most targeted users
“One of the largest security industry misconceptions is that most cyberattacks target top executives and management.”
How blockchain will impact NZ’s economy
Distributed ledgers and blockchain are anticipated to provide a positive uplift to New Zealand’s economy.
McAfee named Leader in Magic Quadrant an eighth time
The company has been once again named as a Leader in the Gartner Magic Quadrant for Security Information and Event Management.
Symantec and Fortinet partner for integration
The partnership will deliver essential security controls across endpoint, network, and cloud environments.
Review: Blue Mic’s Satellite headphones are good but...
Blue Mic’s newest wireless headphones deliver on sound, aesthetic, and comfort - but there is a more insidious issue at hand.
Is Supermicro innocent? 3rd party test finds no malicious hardware
One of the larger scandals within IT circles took place this year with Bloomberg firing shots at Supermicro - now Supermicro is firing back.
Forcepoint and Chillisoft - “a powerful combination”
Following Chillisoft’s portfolio expansion by signing on Forcepoint, the companies’ execs explain how this is a match made in cybersecurity heaven.
David Hickling in memoriam: “Celebrate the life and the music it made”
Dave was a well-respected presence in the IT channel and his recent death was felt by all the many people who knew him as a colleague and a friend.