Apple 2014 Annual Report Download - page 31

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Mac
The following table presents Mac 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 $24,079 12% $21,483 (7)% $23,221
Percentage of total net sales 13% 13% 15%
Unit sales 18,906 16% 16,341 (10)% 18,158
The year-over-year growth in Mac net sales and unit sales for 2014 was primarily driven by increased sales of MacBook Air,
MacBook Pro and Mac Pro. Mac net sales and unit sales increased in all of the Company’s operating segments. Mac ASPs
decreased during 2014 compared to 2013 primarily due to price reductions on certain Mac models and a shift in mix towards
Mac portable systems.
Mac net sales and unit sales for 2013 were down or relatively flat in all of the Company’s operating segments. Mac ASPs
increased slightly partially offsetting the impact of lower unit sales on net sales. The decline in Mac unit sales and net sales
reflected the overall weakness in the market for personal computers.
iTunes, Software and Services
The following table presents net sales information of iTunes, Software and Services for 2014, 2013 and 2012 (dollars in
millions):
2014 Change 2013 Change 2012
iTunes, Software and Services $18,063 13% $16,051 25% $12,890
Percentage of total net sales 10% 9% 8%
The increase in net sales of iTunes, Software and Services in 2014 compared to 2013 was primarily due to growth in net sales
from the iTunes Store, AppleCare and licensing. The iTunes Store generated a total of $10.2 billion in net sales during 2014
compared to $9.3 billion during 2013. Growth in net sales from the iTunes Store was driven by increases in revenue from app
sales reflecting continued growth in the installed base of iOS devices and the expanded offerings of iOS Apps and related in-
App purchases. This was partially offset by a decline in sales of digital music.
The increase in net sales of iTunes, Software and Services in 2013 compared to 2012 was primarily due to growth in net sales
from the iTunes Store, AppleCare and licensing. The iTunes Store generated a total of $9.3 billion in net sales during 2013, a
24% increase from 2012. Growth in the iTunes Store, which includes the App Store, the Mac App Store and the iBooks Store,
reflected continued growth in the installed base of iOS devices, expanded offerings of iOS Apps and related in-App purchases,
and expanded offerings of iTunes digital content.
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 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 Part II, Item 8 of this Form 10-K in
the Notes to Consolidated Financial Statements in Note 11, “Segment Information and Geographic Data.”
Apple Inc. | 2014 Form 10-K | 29