Apple's Opex Efficiency

asymco | Apple’s R&D Efficiency.

Following up on R&D efficiency, we are measuring operational expenses for Apple.

Here is the chart showing how, as a percent of sales, R&D + SG&A have declined, though R&D has been more resilient holding fairly steady at 3 percent and SG&A dropping from about 11% to approximately 9%.

  • M

    What does SG&A stand for?

    • JonathanU

      SG&A = Selling, General and Administration.

      Essentially any cost related to the business period that is not incorporated into COGS (Cost of Goods Sold); the line item before Gross Margin or Gross Profit. This encapsulates just the costs with the physical goods that are actually sold (ie for iPhone, chips, components etc.)

      -Cost of Goods Sold
      =Gross Margin/Profit
      -Selling, General & Administration
      =Operating Income/Profit (aka EBIT – Earnings before Interest and Taxation)

      Check any Income Statement for a further breakdown.


  • Asymco

    Cost related to selling, overhead and administration. Includes advertising, promotion, management salaries and, the expenses for running the Apple stores.