Apple 2011 Annual Report Download - page 33

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Fiscal Year 2011 versus 2010
Net sales during 2011 increased $43.0 billion or 66% compared to 2010. Several factors contributed positively to this increase, including the
following:
Partially offsetting the positive factors contributing to the overall increase in net sales was a decrease in iPod net sales of $821 million or 10%
during 2011 compared to 2010. Similarly, iPod unit sales decreased by 15% in 2011 compared to 2010. However, net sales per iPod unit sold
increased during 2011 compared to 2010 due primarily to a shift in iPod product mix toward iPod touch. Net sales of iPod accounted for 7% of
the Company’s total net sales for 2011.
31
•
Net sales of iPhone and related products and services were $47.1 billion in 2011, representing an increase of $21.9 billion or 87%
compared to 2010. iPhone handset unit sales totaled 72.3 million during 2011, representing an increase of 32.3 million units or 81%
compared to 2010. iPhone year-over-year net sales growth reflected strong demand for iPhone 4 in all of the Company’
s operating
segments. The expanded U.S. distribution of iPhone to the Verizon Wireless network beginning in February 2011, continued
expansion into new countries, and increased distribution with other new carriers and resellers also contributed to the year-over-
year
growth of iPhone. As of September 24, 2011, the Company distributed iPhone in 105 countries through 228 carriers. Additionally,
the Company distributes iPhone through its direct channels and certain third-
party resellers. Net sales of iPhone and related products
and services accounted for 43% of the Company
’
s total net sales for 2011.
•
Net sales of iPad and related products and services, which the Company introduced in the third quarter of 2010, were $20.4 billion in
2011, representing an increase of $15.4 billion or 311% compared to 2010. Unit sales of iPad were 32.4 million during 2011, an
increase of 334% from 2010. The year-over-
year unit growth and net sales growth were driven by strong iPad demand in all of the
Company’s operating segments. The Company distributes iPad through its direct channels, certain cellular network carriers’
distribution channels and certain third-
party resellers. The Company distributed iPad in 90 countries as of September 24, 2011
compared to 26 countries as of September 25, 2010. Net sales of iPad and related products and services accounted for 19% of the
Company
’
s total net sales for 2011.
•
Mac net sales were $21.8 billion in 2011, representing an increase of $4.3 billion or 25% compared to 2010. Mac unit sales increased
by 3.1 million or 22% in 2011 compared to 2010. The year-over-
year growth in Mac net sales and unit sales was due primarily to
higher demand in all of the Company’
s operating segments for MacBook Air and MacBook Pro, which were updated in July 2011
and February 2011, respectively. The year-over-
year revenue growth for portables and desktops was 36% and 4%, respectively. Net
sales of the Company
’
s Macs accounted for 20% of the Company
’
s total net sales for 2011.
•
Net sales of other music related products and services were $6.3 billion in 2011, representing an increase of $1.4 billion or 28%
compared to 2010. The increase was due primarily to increased net sales from the iTunes Store, which was largely driven by App
Store expansion into new countries that contributed to strong growth in all of the Company’
s geographic segments. During 2011, the
combined net sales for the iTunes Store, App Store and iBookstore was $5.4 billion, representing an increase of 33% compared to
2010. The Company believes this continued growth is the result of heightened consumer interest in downloading third-
party digital
content, continued growth in its customer base of iPhone, iPad and iPod, expansion of third-
party audio and video content available
via the iTunes Store, and continued interest in and growth of the App Store. Net sales of other music related products and services
accounted for 6% of the Company
’
s total net sales for 2011.