Apple 2010 Annual Report Download - page 37

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Table of Contents
Fiscal Year 2010 versus 2009
Net sales during 2010 increased $22.3 billion or 52% compared to 2009. Several factors contributed positively to these increases, including the
following:
34
(c)
Includes iTunes Store sales, iPod services, and Apple
-
branded and third
-
party iPod accessories.
(d)
Includes revenue recognized from iPhone sales, carrier agreements, services, and Apple
-
branded and third
-
party iPhone accessories.
(e)
Includes revenue recognized from iPad sales, services and Apple
-
branded and third
-
party iPad accessories.
(f)
Includes sales of displays, wireless connectivity and networking solutions, and other hardware accessories.
(g)
Includes sales of Apple
-
branded operating system and application software, third
-
party software, Mac and Internet services.
(h)
Derived by dividing total product
-
related net sales by total product
-
related unit sales.
NM
= Not Meaningful
•
Net sales of iPhone and related products and services were $25.2 billion in 2010 representing an increase of $12.1 billion or 93%
compared to 2009. Net sales of iPhone and related products and services accounted for 39% of the Company’
s total net sales for the
year. iPhone unit sales totaled 40 million in 2010, which represents an increase of 19.3 million or 93% compared to 2009. iPhone
year
-over-
year growth was attributable primarily to continued growth from existing carriers, expanded distribution with new
international carriers and resellers, and strong demand for iPhone 4, which was released in the U.S. in June 2010 and in many other
countries over the remainder of 2010. As of September 25, 2010, the Company distributed iPhone in 89 countries through 166
carriers.
•
Net sales of iPad and related products and services were $5.0 billion and unit sales of iPad were 7.5 million during 2010. iPad was
released in the U.S. in April 2010 and in various other countries over the remainder of 2010. As of September 25, 2010, the
Company distributed iPad in 26 countries. The Company distributes iPad through its direct channels, certain cellular network
carriers’ distribution channels and certain third-
party resellers. Net sales of iPad and related products and services accounted for 8%
of the Company
’
s total net sales for 2010, reflecting the strong demand for iPad during the five months following its release.
•
Mac net sales increased by $3.6 billion or 26% in 2010 compared to 2009, and Mac unit sales increased by 3.3 million or 31% in
2010 compared to 2009. Net sales per Mac unit sold decreased by 4% in 2010 compared to 2009 due primarily to lower average
selling prices of Mac portable systems. Net sales of the Company’s Macs accounted for 27% of the Company’
s total net sales in 2010
compared to 32% in 2009. During 2010, net sales and unit sales of the Company’
s Mac portable systems increased by 18% and 25%,
respectively, primarily attributable to strong demand for MacBook Pro, which was updated in April 2010. Net sales and unit sales of
the Company’
s Mac desktop systems increased by 43% and 45%, respectively, as a result of higher sales of iMac, which was updated
in July 2010.
•
Net sales of other music related products and services increased $912 million or 23% during 2010 compared to 2009. This increase
was due primarily to growth of the iTunes Store which generated total net sales of $4.1 billion for 2010. The results of the iTunes
Store reflect growth of the iTunes App Store, continued growth in the installed base of iPhone, iPad, and iPod customers, and the
expansion of third-
party audio and video content available for sale and rent via the iTunes Store. The Company continues to expand
its iTunes content and applications offerings around the world. Net sales of other music related products and services accounted for
8% of the Company
’
s total net sales for 2010.
•
Net sales of iPods increased $183 million or 2% during 2010, while iPod unit sales declined by 7% during 2010 compared to 2009.
Net sales per iPod unit sold increased by 10% to $164 in 2010 compared to 2009, due to a shift in product mix toward iPod touch.
iPod touch had strong growth in each of the Company’
s reportable operating segments. Net sales of iPods accounted for 13% of the
Company
’
s total net sales for the year compared to 19% in 2009.