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Segment Operating Performance
The Company manages its business primarily on a geographic basis. Accordingly, the Company determined its
reportable operating segments, which are generally based on the nature and location of its customers, to be the
Americas, Europe, Greater China, Japan, Rest of Asia Pacific and Retail. The Americas segment includes both
North and South America. The Europe segment includes European countries, as well as India, the Middle East
and Africa. The Greater China segment includes China, Hong Kong and Taiwan. The Rest of Asia Pacific
segment includes Australia and Asian countries, other than those countries included in the Company’s other
operating segments. The Retail segment operates Apple retail stores in 13 countries, including the U.S. The
results of the Company’s geographic segments do not include results of the Retail segment. Each operating
segment provides similar hardware and software products and similar services. Further information regarding the
Company’s operating segments may be found in Note 11, “Segment Information and Geographic Data.”
Americas
The following table presents Americas net sales information for 2013, 2012 and 2011 (in millions):
2013 Change 2012 Change 2011
Net sales ........................................... $62,739 9% $57,512 50% $38,315
Percentage of total net sales ........................ 37% 37% 35%
The growth in the Americas segment net sales during 2013 was driven by increased sales of iPhone following the
introduction of iPhone 5 in September 2012 and iPhone 5s and 5c in September 2013, increased sales from the
iTunes Store, and increased sales of iPad, particularly iPad mini. These increases were partially offset by a
decrease in net sales of iPod and Mac and a decline in iPad ASPs.
The growth in net sales during 2012 was primarily driven by increased demand for iPhone following the launches
of iPhone 4s and iPhone 5, strong demand for the third generation iPad and iPad 2, and higher sales from the
iTunes Store.
Europe
The following table presents Europe net sales information for 2013, 2012 and 2011 (in millions):
2013 Change 2012 Change 2011
Net sales ........................................... $37,883 4% $36,323 31% $27,778
Percentage of total net sales ........................ 22% 23% 26%
Similar to the Americas segment, growth in net sales in the Europe segment during 2013 was primarily driven by
increased sales of iPhone, iPad and higher net sales from iTunes. These increases were partially offset by
decreases in net sales of Mac and iPod and a decline in iPad ASPs. Net sales in the Europe segment continue to
be negatively impacted by unfavorable economic conditions in parts of the region reflected by second half 2013
net sales falling 4% compared to the second half of 2012, which followed an 11% increase in net sales during the
first half of 2013.
The growth in net sales during 2012 was primarily driven by strong demand for the third generation iPad and
iPad 2, higher sales from the iTunes Store and increased demand for iPhone from the launch of iPhone 4s. iPhone
5 was launched in a limited number of countries in the Europe segment at the end of the fourth quarter of 2012
and did not contribute to the growth in net sales in the Europe segment to the extent it did in other segments.
Lower year-over-year growth in net sales in the Europe segment during 2012 compared to the Company’s other
geographic segments reflects growth in iPhone unit sales that was well below the growth rates experienced by the
Company’s other operating segments, partially offset by strong growth in iPad unit sales. Net sales in the Europe
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