Apple 2014 Annual Report Download - page 33

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The growth in net sales in the Greater China segment during 2013 resulted from two major iPhone introductions during the
year, iPhone 5 in December 2012 and iPhone 5c and iPhone 5s in September 2013. Further contributing to the growth in 2013
was the introduction of the fourth generation iPad and iPad mini during the second quarter of 2013 and an increase in iPhone
channel inventory as of the end of 2013 compared to the end of 2012. While net sales in the Greater China segment were up
13% for all of 2013, net sales for the second half of 2013 declined 4% compared to the second half of 2012.
Japan
The following table presents Japan net sales information for 2014, 2013 and 2012 (dollars in millions):
2014 Change 2013 Change 2012
Net sales $14,982 11% $13,462 27% $10,571
Percentage of total net sales 8% 8% 7%
In 2014 the Japan segment generated year-over-year increases in net sales and unit sales of every major product category
except iPod and experienced growth in net sales of iTunes, Software and Service. The year-over-year growth in iPhone was
driven by the successful launch of iPhone 5s and 5c in September 2013, the successful launch of iPhone 6 and 6 Plus in
September 2014, increased demand for the Company’s entry-priced iPhones and the addition of a significant new carrier in the
fourth quarter of 2013. These positive factors were partially offset by weakness in the Japanese Yen relative to the U.S. dollar.
The increase in net sales in the Japan segment during 2013 reflected significant increases in unit volumes of iPhone and iPad,
strong growth of iTunes Store net sales and an increase in iPhone channel inventory as of the end of 2013 compared to the
end of 2012. These positive factors were partially offset by declines in ASPs for iPhone and iPad and by weakness in the
Japanese Yen relative to the U.S. dollar.
Rest of Asia Pacific
The following table presents Rest of Asia Pacific net sales information for 2014, 2013 and 2012 (dollars in millions):
2014 Change 2013 Change 2012
Net sales $10,344 (7)% $11,181 4% $10,741
Percentage of total net sales 6% 7% 7%
Net sales in the Rest of Asia Pacific segment declined in 2014 compared to 2013 due to year-over-year reductions in net sales
in all major product categories except Mac and reductions in unit sales of iPad and iPod. Net sales in 2014 were also negatively
affected by the weakness in several foreign currencies relative to the U.S. dollar, including the Australian dollar.
The year-over-year growth in Rest of Asia Pacific segment net sales during 2013 was primarily driven by the launch of iPhone 5
and higher sales from the iTunes Store, partially offset by a decrease in net sales of iPad and Mac.
Apple Inc. | 2014 Form 10-K | 31