Apple 2012 Annual Report Download - page 35

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Japan
Net sales in the Japan segment increased $5.1 billion or 94% during 2012 compared to 2011. The growth in net
sales during 2012 was primarily driven by increased demand for iPhone following the launches of iPhone 4S and
iPhone 5, expanded distribution with a new iPhone carrier, strong demand for the new iPad and iPad 2, higher
sales from the iTunes Store, and strength in the Japanese Yen relative to the U.S. dollar. The Japan segment
represented approximately 7% and 5% of the Company’s total net sales for 2012 and 2011, respectively.
Net sales in the Japan segment increased $1.5 billion or 37% during 2011 compared to 2010. The key
contributors to Japan’s net sales growth were increased iPhone sales, strong sales of iPad, increased sales of Mac,
and strength in the Japanese Yen relative to the U.S. dollar. The Japan segment represented 5% and 6% of the
Company’s total net sales for 2011 and 2010, respectively.
Asia-Pacific
Net sales in the Asia-Pacific segment increased $10.7 billion or 47% during 2012 compared to 2011. The growth in
net sales during 2012 was mainly due to increased demand for iPhone from the launch of iPhone 4S, strong demand
for the new iPad and iPad 2, and higher Mac sales. Growth in the Asia Pacific segment was affected by the timing
of iPhone and iPad product launches. iPhone 5 was launched in a limited number of countries in the Asia Pacific
segment during the fourth quarter of 2012 and was not launched in China during 2012, and the new iPad that was
introduced by the Company in March 2012 was not launched in China until the fourth quarter of 2012. The Asia-
Pacific segment represented approximately 21% of the Company’s total net sales in both 2012 and 2011.
Net sales in the Asia Pacific segment increased $14.3 billion or 174% during 2011 compared to 2010. The
Company experienced particularly strong year-over-year net sales growth in its Asia Pacific segment during
2011, especially in Greater China, which includes Hong Kong and Taiwan. Korea and Australia also experienced
strong year-over-year revenue growth. Higher net sales in the Asia Pacific segment were due mainly to the
increase in iPhone sales primarily attributable to the strong demand for iPhone 4 and carrier expansion, strong
sales of iPad, and increased Mac sales. The Asia Pacific segment represented 21% and 13% of the Company’s
total net sales in 2011 and 2010, respectively.
Retail
Net sales in the Retail segment increased $4.7 billion or 33% during 2012 compared to 2011. The growth in net
sales during 2012 was driven primarily by increased demand for iPhone following the launches of iPhone 4S and
iPhone 5, strong demand for the new iPad and iPad 2, and higher Mac net sales. Lower year-over-year growth in
net sales in the Retail segment during 2012 compared to the Company’s other segments reflects the significant
growth in iPad indirect distribution channel expansion. The Retail segment accounted for 12% and 13% of the
Company’s total net sales for 2012 and 2011, respectively.
The Company opened 33 new retail stores during 2012, 28 of which were outside the U.S., ending the year with
390 stores open compared to 357 stores at the end of 2011. As of September 29, 2012, the Company had a total
of 250 U.S. retail stores and 140 international retail stores. With an average of 365 stores and 326 stores during
2012 and 2011, respectively, average revenue per store increased 19% to $51.5 million in 2012 compared to
$43.3 million in 2011.
Net sales in the Retail segment increased $4.3 billion or 44% during 2011 compared to 2010. The increase in net
sales was driven primarily by strong demand for iPad, higher Mac sales, and an increase in iPhone sales. The
Company opened 40 new retail stores during 2011, 28 of which were outside the U.S., ending the year with
357 stores open compared to 317 stores at the end of 2010. As of September 24, 2011, the Company had a total
of 245 U.S. retail stores and 112 international retail stores. During 2011, the Company had an average of
326 stores compared to an average of 288 stores during 2010. The average revenue per store increased 27% to
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