Apple 2012 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2012 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 88

  • 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

Fiscal Year 2012 versus 2011
Net sales during 2012 increased $48.3 billion or 45% compared to 2011. Several factors contributed positively to
this increase, including the addition of a 14th week in the first quarter of 2012, as well as the following:
• Net sales of iPhone and related products and services were $80.5 billion in 2012, representing an
increase of $33.4 billion or 71% compared to 2011. iPhone unit sales totaled 125.0 million during
2012, representing an increase of 52.8 million units or 73% compared to 2011. The year-over-year
growth in iPhone net sales and unit sales during 2012 reflects strong demand for iPhone in all of the
Company’s operating segments, which is primarily a result of the launches of iPhone 4S in the first
quarter of 2012 and iPhone 5 in the fourth quarter of 2012, ongoing demand for iPhone 4 and iPhone
3GS, and expanded distribution with new carriers and resellers. Net sales of iPhone and related
products and services were 51% and 43% of the Company’s total net sales for 2012 and 2011,
respectively.
• Net sales of iPad and related products and services were $32.4 billion in 2012, representing an increase
of $12.1 billion or 59% compared to 2011. Unit sales of iPad were 58.3 million during 2012, an
increase of 80% from 2011. The year-over-year increase in iPad net sales and unit sales during 2012
was driven by strong demand for iPad in all of the Company’s operating segments as a result of the
launch of the new iPad in March 2012, continued demand for iPad 2, and expanded distribution with
new resellers. The year-over-year growth rate of iPad unit sales was higher than the growth rate of iPad
net sales during 2012 due to a reduction of average selling prices as a result of a shift in product mix
toward lower-priced iPad models, the price reduction for iPad 2 and an increase in indirect sales due to
expanded distribution through third-party resellers. Net sales of iPad and related products and services
were 21% and 19% of the Company’s total net sales for 2012 and 2011, respectively.
• Mac net sales were $23.2 billion in 2012, representing an increase of $1.4 billion or 7% compared to
2011. Mac unit sales totaled 18.2 million during 2012, representing an increase of 1.4 million or 9%
compared to 2011. The year-over-year growth in Mac net sales and unit sales during 2012 reflects
increased demand for Mac portables in all of the Company’s operating segments driven by 2012
releases of updated models of MacBook Air and MacBook Pro, including the new MacBook Pro with
Retina display in June 2012. Partially offsetting the increase in net sales of Mac portables was a decline
in net sales of Mac desktops that reflected the overall decline in the market for desktop personal
computers during 2012. Additionally, the Company did not introduce updated versions of its Mac
desktop products in 2012. Mac net sales were 15% and 20% of the Company’s total net sales for 2012
and 2011, respectively.
• Net sales of other music related products and services were $8.5 billion in 2012, representing an
increase of $2.2 billion or 35% compared to 2011. The increase was due primarily to growth of the
iTunes Store, which generated total net sales of $7.5 billion for 2012 compared to net sales of
$5.4 billion during 2011. The strong results of the iTunes Store reflect growth of the App Store; growth
of the Company’s customer base; and the continued expansion of third-party audio, video and book
content available for sale or 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 were 5% and 6% of the Company’s total net sales for 2012 and 2011, respectively.
Partially offsetting the positive factors contributing to the overall increase in net sales was a decrease in iPod net
sales experienced across all operating segments. iPod net sales were $5.6 billion in 2012, a decrease of
$1.8 billion or 25% compared to 2011. Similarly, iPod unit sales decreased by 17% in 2012 compared to 2011.
Declines in net sales and unit sales of iPod reflect the continuing contraction of the overall market for MP3
players. Net sales of iPod were 4% and 7% of the Company’s total net sales for 2012 and 2011, respectively.
The Company has historically experienced higher net sales in its first fiscal quarter compared to other quarters in
its fiscal year due in part to holiday seasonal demand. Actual and anticipated timing of new product introductions
31