Apple is one of the most popular companies on the planet, and it is also one of the most profitable. Everyone knows that with the success of products such as the iPhone and iPad, Apple has earned more than $156 billion in net sales in 2012 alone. So what does the company do with all of its money?
The first expenditure Apple incurs is overhead costs for administrative and sales divisions. The company also spends more than $3 billion a year for research and development to maintain its reputation of bringing consumers new and exciting products. Because Apple has such a worldwide reputation, the company spends less than one percent of its total sales on advertising, which about $930 million. Apple also pays around $14 billion in taxes.