Apple 2014 Annual Report Download - page 30

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Product Performance
iPhone
The following table presents iPhone net sales and unit sales information for 2014, 2013 and 2012 (dollars in millions and units in
thousands):
2014 Change 2013 Change 2012
Net sales $101,991 12% $ 91,279 16% $ 78,692
Percentage of total net sales 56% 53% 50%
Unit sales 169,219 13% 150,257 20% 125,046
The year-over-year growth in iPhone net sales and unit sales in 2014 resulted primarily from the successful introduction of new
iPhones in the latter half of calendar year 2013, the successful launch of iPhone 6 and 6 Plus beginning in September 2014,
and expanded distribution. iPhone unit sales grew in all of the Company’s operating segments, while iPhone net sales grew in
all segments except Rest of Asia Pacific. Overall average selling prices (“ASPs”) for iPhone were relatively flat in 2014 compared
to 2013, with growth in ASPs in the Americas and Retail segments being offset by a decline in ASPs in the Greater China,
Japan and Rest of Asia Pacific segments.
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 ASPs 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.
iPad
The following table presents iPad net sales and unit sales information for 2014, 2013 and 2012 (dollars in millions and units in
thousands):
2014 Change 2013 Change 2012
Net sales $ 30,283 (5)% $ 31,980 3% $ 30,945
Percentage of total net sales 17% 19% 20%
Unit sales 67,977 (4)% 71,033 22% 58,310
Net sales and unit sales for iPad declined in 2014 compared to 2013. iPad net sales and unit sales grew in the Greater China
and Japan segments but this growth was more than offset by a decline in all other segments. Overall iPad ASPs were relatively
flat in 2014 compared to 2013 with a shift in mix to higher-priced iPads being offset by the October 2013 price reduction of
iPad mini. ASPs increased in the Japan and Retail segments but were flat to slightly down in other segments.
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.
Apple Inc. | 2014 Form 10-K | 28