Apple 2013 Annual Report Download - page 30

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Product Performance
iPhone
The following table presents iPhone net sales and unit sales information for 2013, 2012 and 2011 (net sales in
millions and units in thousands):
2013 Change 2012 Change 2011
Net sales ........................................ $ 91,279 16% $ 78,692 71% $ 45,998
Percentage of total net sales ..................... 53% 50% 42%
Unit sales ........................................ 150,257 20% 125,046 73% 72,293
The growth in iPhone net sales and unit sales during 2013 resulted from increased demand for iPhone in all of the
Company’s operating segments primarily due to the launch of iPhone 5 beginning in September 2012 and strong
ongoing demand for iPhone 4 and 4s. All of the Company’s operating segments experienced increases in net
sales and unit sales of iPhone during 2013 compared to 2012. The year-over-year impact of higher iPhone unit
sales in 2013 was partially offset by a 3% decline in iPhone average selling prices (“ASPs”) in 2013 compared to
2012 primarily as a result of a shift in product mix towards lower-priced iPhone models, particularly iPhone 4.
All of the Company’s geographic operating segments experienced a decline in iPhone ASPs during 2013.
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, except for the Rest of Asia Pacific segment. Growth in iPhone sales
during 2012 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 during 2012 for iPhone 4 and iPhone 3GS, and expanded distribution
with new carriers and resellers.
iPad
The following table presents iPad net sales and unit sales information for 2013, 2012 and 2011 (net sales in
millions and units in thousands):
2013 Change 2012 Change 2011
Net sales ........................................ $ 31,980 3% $ 30,945 61% $ 19,168
Percentage of total net sales ..................... 19% 20% 18%
Unit sales ........................................ 71,033 22% 58,310 80% 32,394
The growth in net sales and unit sales of iPad during 2013 resulted from growth in iPad unit sales in all of the
Company’s operating segments. This growth was driven by the launch of iPad mini and the fourth generation
iPad beginning in the first quarter of 2013. The year-over-year growth rate of total iPad unit sales was
significantly higher than the growth rate of total iPad net sales for 2013 due to a reduction in iPad ASPs of 15%
in 2013 compared to 2012. This decline resulted primarily from introduction of the lower priced iPad mini and
the full year impact of the price reduction on iPad 2 made in 2012. The decline in iPad ASPs was experienced to
various degrees by all of the Company’s operating segments.
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 third generation 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 10% reduction in ASPs as a
result of a shift in product mix toward lower-priced iPad models, a price reduction on iPad 2 and an increase in
indirect sales due to expanded distribution through third-party resellers.
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