Apple 2004 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2004 Apple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Notes:
(a)
Total Macintosh unit sales
3,290
9
%
3,012
(3
)%
3,101
Net sales per Macintosh unit sold (g)
$
1,496
0
%
$
1,491
2
%
$
1,462
iPod unit sales
4,416
370
%
939
146
%
381
Other Segments include Asia Pacific and FileMaker.
(b) Includes Xserve product line.
(c)
Includes eMac product line.
(d)
Other Music Products consists of iTunes Music Store sales, iPod
-
related services, and Apple
-
branded and third
-
party iPod
-
related
accessories.
(e)
Net sales of Peripherals and Other Hardware include sales of Apple
-
branded and third
-
party displays, wireless connectivity and
networking solutions, and other hardware accessories.
(f) Net sales of Software include sales of Apple-branded operating system and application software and sales of third-party software.
(g) Net sales per Macintosh unit sold is derived by dividing total Macintosh net sales by total Macintosh unit sales.
Fiscal Year 2004 versus 2003
During fiscal 2004, net sales increased 33% or $2.1 billion from fiscal 2003. Several factors have contributed favorably to net sales during 2004:
•
Net sales of Macintosh systems increased $432 million or 10% during fiscal 2004 compared to 2003 while net sales per
Macintosh unit sold remained relatively flat on a year-over-
year basis. Unit sales of Macintosh systems increased 278,000 units or
9% during fiscal 2004 compared to 2003. These increases in net sales and unit sales were a result of strong demand for all of the
Company's Macintosh systems, except for the iMac. The Company's portable systems, consisting of the PowerBook and iBook,
produced the strongest revenue and unit growth during fiscal 2004 compared to 2003 of approximately 26% and 33%,
respectively. Unit sales of portable systems accounted for 51% of all Macintosh systems sold during fiscal 2004 compared to only
42% during 2003. The Company believes that these results reflect an overall trend in the industry towards portable systems.
Performance of the Company's Power Macintosh systems also yielded positive results in fiscal 2004, including a 15% and 6%
increase in net sales and unit sales, respectively. The increase in year-to-date Power Macintosh sales is due primarily to the
introduction of the Power Mac G5, which began shipping at the end of fiscal 2003. Although Power Macintosh sales have
increased from the prior year, sales of this product were constrained in the second half of 2004 as a result of manufacturing
problems at IBM, the Company's sole supplier of the PowerPC G5 processor.
• Net sales of iPods rose $961 million or 279% during fiscal 2004 compared to 2003. Unit sales of iPods totaled 4.4 million in
fiscal 2004, which represents an increase of 370% from the 939,000 iPod units sold in fiscal 2003. Strong demand for the iPods
during fiscal 2004 continued to be
29