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Services
The following table presents net sales information of Services for 2015, 2014 and 2013 (dollars in millions):
2015 Change 2014 Change 2013
Net sales $ 19,909 10% $ 18,063 13% $ 16,051
Percentage of total net sales 9% 10% 9%
The increase in net sales of Services during 2015 compared to 2014 was primarily due to growth from Internet Services and licensing. The
App Store, included within Internet Services, generated strong year-over-year net sales growth of 29%.
The increase in net sales of Services in 2014 compared to 2013 was primarily due to growth in net sales from Internet Services, AppleCare
and licensing. Internet Services generated a total of $10.2 billion in net sales during 2014 compared to $9.3 billion during 2013. Growth in
net sales from Internet Services 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.
Segment Operating Performance
The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments consist of the
Americas, Europe, Greater China, Japan and Rest of Asia Pacific. 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 those Asian countries not included in the Company’s
other reportable operating segments. Although, each reportable operating segment provides similar hardware and software products and
similar services, they are managed separately to better align with the location of the Company’s customers and distribution partners and
the unique market dynamics of each geographic region. Further information regarding the Company’s reportable operating segments can
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.”
Americas
The following table presents Americas net sales information for 2015, 2014 and 2013 (dollars in millions):
2015 Change 2014 Change 2013
Net sales $ 93,864 17% $ 80,095 4% $ 77,093
Percentage of total net sales 40% 44% 45%
The year-over-year growth in Americas net sales during 2015 was driven primarily by growth in net sales and unit sales of iPhone, partially
offset by a decline in net sales and unit sales of iPad.
The growth in the Americas segment in 2014 was due to increased net sales of iPhone, Mac and Services that was partially offset by a
decline in net sales of iPad and Other Products and weakness in foreign currencies relative to the U.S. dollar compared to 2013. iPhone
growth resulted primarily from the successful introduction of iPhone 5s and 5c in September 2013 and the successful launch of iPhone 6
and 6 Plus in September 2014. Mac growth was driven primarily by increased net sales and unit sales of MacBook Air and Mac Pro.
Europe
The following table presents Europe net sales information for 2015, 2014 and 2013 (dollars in millions):
2015 Change 2014 Change 2013
Net sales $ 50,337 14% $ 44,285 8% $ 40,980
Percentage of total net sales 22% 24% 24%
The year-over-year increase in Europe net sales during 2015 was driven primarily by growth in net sales and unit sales of iPhone, partially
offset by the effect of weakness in foreign currencies relative to the U.S. dollar and a decline in net sales and unit sales of iPad.
The growth in the Europe segment in 2014 was due to increased net sales of iPhone, Mac and Services, as well as strength in European
currencies relative to the U.S. dollar, partially offset by a decline in net sales of iPad. iPhone growth resulted primarily from the successful
introduction of iPhone 5s and 5c in the second half of calendar 2013 and the successful launch of iPhone 6 and 6 Plus in over 20
countries in Europe in September 2014. Mac growth was driven primarily by increased net sales and unit sales of MacBook Air, MacBook
Pro and Mac Pro.
Apple Inc. | 2015 Form 10-K | 26