Apple 2011 Annual Report Download - page 35

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countries, other than Japan. The Retail segment operates Apple retail stores in 11 countries. Each reportable operating segment provides similar
hardware and software products and similar services. Further information regarding the Company’
s operating segments may be found in Note 8,
“Segment Information and Geographic Data” in Notes to Consolidated Financial Statements of this Form 10-K.
Americas
During 2011, net sales in the Americas segment increased $13.8 billion or 56% compared to 2010. The primary contributors to the growth in net
sales was a significant year-over-
year increase in iPhone revenue from carrier expansion and strong demand for iPhone 4 and increased sales of
iPad and Macs, partially offset by a decrease in iPod net sales. Higher sales of third-
party digital content and applications from the iTunes Store
and App Store also drove an increase in sales during 2011. The Americas segment represented approximately 35% and 37% of the Company’
s
total net sales for 2011 and 2010, respectively.
During 2010, net sales in the Americas segment increased $5.5 billion or 29% compared to 2009. This increase in net sales was driven by
increased iPhone revenue, strong demand for iPad, continued demand for Mac desktop and portable systems, and higher sales of third-
party
digital content and applications from the iTunes Store. The Americas segment represented 37% and 44% of the Company’
s total net sales in
2010 and 2009, respectively.
Europe
For 2011, net sales in the Europe segment increased $9.1 billion or 49%, compared to 2010. The increase in net sales during 2011 was
attributable primarily to the continued year-over-
year increase in iPhone revenue from carrier expansion and strong demand for iPhone 4, and
increased sales of iPad and Macs, partially offset by a decrease in iPod net sales. The Europe segment represented 26% and 29% of total net
sales for 2011 and 2010, respectively.
During 2010, net sales in Europe increased $6.9 billion or 58% compared to 2009. The growth in net sales was due mainly to a significant
increase in iPhone revenue attributable to continued growth from existing carriers and country and carrier expansion, increased sales of Mac
desktop and portable systems and strong demand for iPad, partially offset by a stronger U.S. dollar. The Europe segment represented 29% and
28% of the Company’s total net sales in 2010 and 2009, respectively.
Japan
Japan’s net sales increased $1.5 billion or 37% during 2011 compared to 2010. The key contributors to Japan’
s net sales growth were increased
iPhone revenue, strong sales of iPad, increased sales of Macs, and strength in the Japanese Yen relative to the U.S. dollar. The Japan segment
represented 5% and 6% of total net sales for 2011 and 2010, respectively.
The recent earthquakes and tsunami that struck the northeast coast of Japan have created uncertainty regarding general economic and market
conditions in Japan. Any significant impact of these events on consumer demand could negatively impact the Company’
s net sales in Japan in
the future. The Company does not currently believe that the impact of these events will have a material adverse effect on the Company or its
results of operations.
During 2010, Japan’s net sales increased $1.7 billion or 75% compared to 2009. The primary contributors to this growth were significant year-
over-
year increases in iPhone revenue, strong demand for iPad, and to a lesser extent strength in the Japanese Yen. The Japan segment
represented 6% and 5% of the Company’s total net sales for 2010 and 2009, respectively.
33