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Table of Contents
various legal proceedings and claims that arise in the ordinary course of business. In accordance with SFAS No. 5, Accounting for
Contingencies , the Company records a contingent liability when it is probable that a loss has been incurred and the amount is reasonably
estimable. There is significant judgment required in both the probability determination and as to whether an exposure can be reasonably
estimated. In management’s opinion, the Company does not have a potential liability related to any current legal proceedings and claims that
would individually or in the aggregate have a material adverse effect on its financial condition or operating results. However, the outcomes of
legal proceedings and claims brought against the Company are subject to significant uncertainty. Should the Company fail to prevail in any of
these legal matters or should several of these legal matters be resolved against the Company in the same reporting period, the operating results of
a particular reporting period could be materially adversely affected.
Net Sales
Fiscal years 2008 and 2007 spanned 52 weeks while fiscal year 2006 spanned 53 weeks. An additional week is included in the first fiscal quarter
approximately every six years to realign fiscal quarters with calendar quarters.
The following table summarizes net sales and Mac unit sales by operating segment and net sales and unit sales by product during the three fiscal
years ended September 27, 2008 (in millions, except unit sales in thousands and per unit amounts):
41
2008
Change
2007
Change
2006
Net Sales by Operating Segment:
Americas net sales
$
14,573
26
%
$
11,596
23
%
$
9,415
Europe net sales
7,622
40
%
5,460
33
%
4,096
Japan net sales
1,509
39
%
1,082
(11
)%
1,211
Retail net sales
6,315
53
%
4,115
27
%
3,246
Other Segments net sales (a)
2,460
40
%
1,753
30
%
1,347
Total net sales
$
32,479
35
%
$
24,006
24
%
$
19,315
Unit Sales by Operating Segment:
Americas Mac unit sales
3,980
32
%
3,019
24
%
2,432
Europe Mac unit sales
2,519
39
%
1,816
35
%
1,346
Japan Mac unit sales
389
29
%
302
(1
)%
304
Retail Mac unit sales
2,034
47
%
1,386
56
%
886
Other Segments Mac unit sales (a)
793
50
%
528
58
%
335
Total Mac unit sales
9,715
38
%
7,051
33
%
5,303
Net Sales by Product:
Desktops (b)
$
5,603
39
%
$
4,020
21
%
$
3,319
Portables (c)
8,673
38
%
6,294
55
%
4,056
Total Mac net sales
14,276
38
%
10,314
40
%
7,375
iPod
9,153
10
%
8,305
8
%
7,676
Other music related products and services (d)
3,340
34
%
2,496
32
%
1,885
iPhone and related products and services (e)
1,844
N
M
123
N
M
—
Peripherals and other hardware (f)
1,659
32
%
1,260
15
%
1,100
Software, service, and other sales (g)
2,207
46
%
1,508
18
%
1,279
Total net sales
$
32,479
35
%
$
24,006
24
%
$
19,315
Unit Sales by Product:
Desktops (b)
3,712
37
%
2,714
12
%
2,434
Portables (c)
6,003
38
%
4,337
51
%
2,869
Total Mac unit sales
9,715
38
%
7,051
33
%
5,303
Net sales per Mac unit sold (h)
$
1,469
—
%
$
1,463
5
%
$
1,391
iPod unit sales
54,828
6
%
51,630
31
%
39,409
Net sales per iPod unit sold (i)
$
167
4
%
$
161
(17
)%
$
195
iPhone unit sales
11,627
N
M
1,389
N
M
—