Apple Inc.
Company Profile
Publication Date: 6 May 2011
www.datamonitor.com
Europe, Middle East & Africa
119 Farringdon Road
London
EC1R 3DA
United Kingdom
Americas
245 5th Avenue
4th Floor
New York, NY 10016
USA
Asia Pacific
Level 46
2 Park Street
Sydney, NSW 2000
Australia
t: +44 20 7551 9000
f: +44 20 7551 9090
e: euroinfo@datamonitor.com
t: +1 212 686 7400
f: +1 212 686 2626
e: usinfo@datamonitor.com
t: +61 2 8705 6900
f: +61 2 8088 7405
e: apinfo@datamonitor.com
Apple Inc.
ABOUT DATAMONITOR
Datamonitor is a leading business information company specializing in industry analysis.
Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased
expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive,
Energy, Consumer Markets, and Financial Services.
The company also advises clients on the impact that new technology and eCommerce will have on
their businesses. Datamonitor maintains its headquarters in London, and regional offices in New
York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies.
Datamonitor's premium reports are based on primary research with industry panels and consumers.
We gather information on market segmentation, market growth and pricing, competitors and products.
Our experts then interpret this data to produce detailed forecasts and actionable recommendations,
helping you create new business opportunities and ideas.
Our series of company, industry and country profiles complements our premium products, providing
top-level information on 10,000 companies, 2,500 industries and 50 countries. While they do not
contain the highly detailed breakdowns found in premium reports, profiles give you the most important
qualitative and quantitative summary information you need - including predictions and forecasts.
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic,
mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc.
The facts of this profile are believed to be correct at the time of publication but cannot be guaranteed. Please note that the
findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith
from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor
can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Apple Inc.
© Datamonitor
Page 2
Apple Inc.
TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview..............................................................................................4
Key Facts...............................................................................................................4
Business Description...........................................................................................5
History...................................................................................................................8
Key Employees...................................................................................................12
Key Employee Biographies................................................................................13
Major Products and Services............................................................................18
Revenue Analysis...............................................................................................20
SWOT Analysis...................................................................................................22
Top Competitors.................................................................................................28
Company View.....................................................................................................29
Locations and Subsidiaries...............................................................................32
Apple Inc.
© Datamonitor
Page 3
Apple Inc.
Company Overview
COMPANY OVERVIEW
Apple or "the company" is engaged in design, development and marketing of personal computers,
media devices, and portable digital music players. The company also sells a variety of related
software, services, peripherals, networking solutions, and third-party digital content and applications.
The company's portfolio of offerings comprises Macintosh (Mac) computing systems, iPods line of
portable digital music and video players, iPhone handsets and iPad portable multimedia and computing
devices. The company primarily operates in the US. It is headquartered in Cupertino, California and
employs 46,600 employees.
The company recorded revenues of $65,225 million during the financial year ended September 2010
(FY2010), an increase of 52% over 2009. The increase in revenues was mainly due to 93% growth
in sales of iPhone and robust sales of the iPad. The operating profit of the company was $18,385
million in FY2010, an increase of 56.6% over 2009. Its net profit was $14,013 million in FY2010, an
increase of 70.2% over 2009.
KEY FACTS
Head Office
Apple Inc.
1 Infinite Loop
Cupertino
California 95014
USA
Phone
1 408 996 1010
Fax
1 408 974 2113
Web Address
http://www.apple.com
Revenue / turnover 65,225.0
(USD Mn)
Financial Year End
September
Employees
46,600
NASDAQ National
Market Ticker
AAPL
Apple Inc.
© Datamonitor
Page 4
Apple Inc.
Business Description
BUSINESS DESCRIPTION
Apple or "the company" designs, manufactures and markets a range of personal computers, mobile
communication and media devices, and portable digital music players. The company sells a variety
of related software, services, peripherals, networking solutions, and third-party digital content and
applications. In addition, the company sells a variety of third-party Mac, iPhone, iPad and iPod
compatible products, including application software, printers, storage devices, speakers, headphones,
and various other accessories and peripherals. The company sells its products worldwide through
its retail stores, online stores, and direct sales force and third-party cellular network carriers,
wholesalers, retailers, and value-added resellers.
The company manages its business primarily on a geographic basis. It operates through five operating
segments: Americas, Europe, Japan, Asia-Pacific and retail. The Americas segment includes both
North and South America. The Europe segment includes European countries as well as the Middle
East and Africa. The Asia-Pacific segment includes Australia and Asia, but does not include Japan.
The retail segment operates Apple retail stores in 11 countries, including the US.
Each operating segment provides similar hardware and software products and similar services.
Apple's products can be grouped under different product lines which are as follows: Mac Hardware
Products, iTunes, iPhone, iPad, iPod, displays and peripheral products, software products and
computer technologies, and internet software and services.
The company hardware products comprise a range of personal computing products including desktop
and portable computers, Xserve servers, related devices and peripherals, and various third-party
hardware products. The Mac desktop and portable systems feature Intel microprocessors, Mac OS
X Version 10.6 Snow Leopard operating system and the iLife suite of software for creation and
management of digital photography, music, movies, DVDs and websites.
The company's desktop computers include iMac, Mac Pro and Mac mini. The iMac desktop computer
is an all-in-one design that incorporates a display, processor, graphics card, hard drive, optical drive,
memory and other components inside a single enclosure. The Mac mini is a desktop computer in a
compact enclosure.
Apple's portable computers include: MacBook–a portable computer designed for consumer and
education users; MacBook Pro–a portable computer designed for professionals and consumers and;
MacBook Air–a high performance, ultra-slim notebook computer designed for professionals and
consumers.
The company's iTunes digital music management software is an application for playing, downloading,
and organizing digital audio and video files and is available for both Mac and Windows-based
computers. iTunes is integrated with the iTunes Store, a service that allows customers to find,
Apple Inc.
© Datamonitor
Page 5
Apple Inc.
Business Description
purchase, rent, and download third-party digital music, audio books, music videos, short films,
television shows, movies, podcasts, games, and other applications.
Apple's iPhone combines a mobile phone, a widescreen iPod with touch controls, and an internet
communications device in a single handheld product. Based on the company's multi-touch user
interface, iPhone features desktop-class email, web browsing, searching, and maps and is compatible
with both Macs and Windows-based computers. The iPhone 4, the latest version if iPhone features
an all-new design, FaceTime video calling, high resolution Retina display, a 5 megapixel camera
with LED flash and front facing camera, high definition video recording, Apple's A4 processor and
a 3-axis gyroscope.
The iPad is a multi-purpose mobile device for browsing the web, reading and sending email, viewing
photos, watching videos, listening to music, playing games, and reading e-books. iPad allows
customers to access the iTunes Store to download audio and video files, as well as a variety of other
digital content and applications.
Apple's iPod line of portable digital music and media players includes iPod touch, iPod nano, iPod
shuffle and iPod classic.
The company manufactures the Apple Cinema High Definition Display and sells a variety of
Apple-branded and third-party Mac-compatible peripheral products, including printers, storage
devices, computer memory, digital video and still cameras, and various other computing products
and supplies.
Apple TV is a device that allows customers to rent and watch movies and television shows on their
television. Content from Netflix, YouTube, Flickr and MobileMe, as well as music, photos and videos
from a Mac or Windows-based computer can also be wirelessly streamed to a television through
Apple TV.
The company offers a range of software products and computer technologies for consumer, SMB,
education, enterprise, government, and creative customers. The company's operating system
software includes Mac OS X and iOS. The Mac OS X is built on an open-source UNIX-based
foundation and Mac OS X Snow Leopard is the seventh major release of Mac OS X. The iOS is the
company's mobile operating system that serves as the foundation for iPhone, iPad and iPod touch.
Apple's portfolio of application software includes iLife, iWork and other application software. iLife '11
is the latest version of the company's consumer-oriented digital lifestyle application suite included
with all Mac computers. iLife features iPhoto digital photo software application, iMovie, iDVD,
GarageBand music creation software application and iWeb. The iWork is the latest version of the
company's integrated productivity suite designed to help users create, present, and publish
documents, presentations, and spreadsheets. The company also offers various other application
software including Final Cut Studio, Final Cut Express, Final Cut Server, Logic Studio, Logic Express
9, Logic Studio Pro, and the FileMaker Pro database software.
Apple Inc.
© Datamonitor
Page 6
Apple Inc.
Business Description
In internet software and services, the company is focused on delivering seamless integration with
and access to the internet throughout its products and services. Apple's internet solutions adhere
to many industry standards to provide an optimized user experience. Safari 5 is the latest version
of the company's web browser that is compatible with Macs and Windows-based computers. MobileMe
is an annual subscription-based suite of internet services that delivers email, contacts and calendars
to and from native applications on iPhone, iPad, iPod touch, Macs, and Windows-based computers.
Apple Inc.
© Datamonitor
Page 7
Apple Inc.
History
HISTORY
Apple or "the company" was incorporated in 1977. It was co-founded by Steven Wozniak and Steven
P. Jobs. They introduced the first Apple I computer in 1976. The Apple I was a failure but Apple II
launched in 1980 was successful. The company offered its IPO in the year 1980.
In the early eighties, competition from the PC market and internal difficulties led to critical management
changes. By 1983, Apple faced stiff competition with the entry of IBM into the PC market, and the
failure of its Apple III version computer. Apple introduced its first mouse driven PC, the Macintosh,
in 1984.
By 1990, the market was flooded with cheap PC clones and Microsoft had launched Windows 3.0.
In 1994, the company launched the PowerPC chip based PowerMac, which allowed Macs to compete
with the speed of Intel's PC processors. Apple still had problems though and in 1995, the company
had a $1 billion order backlog. These problems were compounded by the launch of Windows 95.
The company's performance nosedived in 1995-96 when it lost $68 million.
In 1996, Apple acquired NeXT, and by virtue of which, its operating system (OS), Rhapsody, became
Apple's next-generation OS. By 1997, Apple had incurred huge losses running in millions of dollars.
Mr. Jobs, the co-founder returned as interim CEO. Under his leadership, Apple reorganized to
concentrate on its more profitable competencies, and divested its unsuccessful businesses as
spin-offs, including Newton, its personal digital assistant line of products.
Soon after Mr. Jobs returned, an agreement was made with Microsoft, and was subsequently followed
with the appearance of MS Office on Mac PCs. In 2001, the company acquired PowerSchool, one
of the providers of web-based student information systems for K-12 schools and school districts,
and Spruce Technologies, a privately held company involved in developing and marketing DVD
authoring products.
In the following year, Apple, Ericsson and Sun Microsystems formed an alliance to create a standard
format for delivering multimedia content to wireless devices, such as smartphones and PDAs. The
alliance combined Apple's QuickTime video creation software, Sun's content distribution software
and hardware, and Ericsson's mobile infrastructure and services expertise.
Apple pursued a number of acquisitions during 2002. The company acquired Prismo Graphics,
Silicon Grail, certain assets of Zayante, and also acquired the German based specialist music
software manufacturer, Emagic. Additionally, in 2002, the company acquired certain assets of Nothing
Real, a privately held company engaged in the development of high performance tools designed for
the digital image creation market.
Apple launched its iTunes music store, an online store for downloading music tracks and albums,
in 2003. In the following year, the company signed licensing agreements with three of the largest
European independent music labels, Beggars Group, Sanctuary Records Group and V2, adding
Apple Inc.
© Datamonitor
Page 8
Apple Inc.
History
tens of thousands of additional independent tracks from leading artists to the iTunes music store in
the UK, France and Germany. In the same year, Apple introduced its fourth generation iPod portable
digital music player.
In 2005, the company made an agreement to use Intel microprocessors in its Macintosh PCs. Later
in the year, the company collaborated with Acura, Audi, Honda and Volkswagen to deliver iPod with
their car stereos for 2006 model lines, and also introduced mobile phone with iTunes in collaboration
with Motorola and Cingular Wireless.
Chrysler, in association with Apple, integrated iPod option in the audio systems in its 2006 models.
In the same year, Apple sold its student information systems (SIS) division, PowerSchool, to Pearson.
Later in the year, Ford, General Motors and Mazda teamed up with Apple to integrate iPod across
their brand and models. In 2006, Apple teamed up with Air France, Continental, Delta, Emirates,
KLM and United Airlines to integrate iPod with in-flight entertainment systems.
The company changed its name from Apple Computer, Inc to Apple Inc in 2007, representing its
expanding product portfolio and increasing focus on consumer electronics market. Apple resolved
its 'iPhone' trademark issue with Cisco Systems by entering into an agreement in 2007. According
to the agreement, both the companies acknowledged the ownership rights and will use the trademark
in their products. In the same year, Apple launched its revolutionary product, iPhone, a smartphone
device, and also launched iPod nano, featuring two inch display.
In 2008, Apple introduced Time Capsule, a backup appliance that automatically and wirelessly backs
up everything on one or more Macs running Leopard. Subsequently, it also introduced Mac Pro with
eight processor cores, and MacBook Air, a thin notebook, which measures a maximum height of
0.76-inch.
Apple introduced Xsan 2, the first major upgrade to its easy-to-use, high performance, enterprise
class SAN file system for Mac OS X, in 2008. Subsequently, the company introduced MobileMe, a
new internet service that offers push email, push contacts and push calendars to native applications
on iPhone, iPod touch, Macs and PCs. Also in 2008, Apple announced iPod touch.
In 2009, Apple introduced iWork '09, a new version of Apple's office productivity suite, and iLife '09,
which features major upgrades to iPhoto, iMovie and GarageBand, and included iDVD and an
updated version of iWeb. Subsequently, the company introduced the iPhone 3GS, Apple's
third-generation smartphone with new features such as, longer battery life, high-quality 3 megapixel
autofocus camera, easy to use video recording and hands free voice control.
Later in the year, Apple launched its iTunes Store in Mexico with a selection of Mexican and
international music from all the major labels and independent labels. Subsequently, Apple launched
its previously announced iPod touch lineup with features including Apple Multi-Touch user interface,
3.5-inch widescreen glass display, Wi-Fi, Bluetooth, and a built-in accelerometer and speaker.
During the last quarter of 2009, the company updated its MacBook with LED-backlit display, Apple
Multi-Touch trackpad and built-in seven-hour battery, and subsequently, introduced its wireless
Apple Inc.
© Datamonitor
Page 9
Apple Inc.
History
Magic Mouse, the world's first mouse to use Apple's Multi-Touch technology. Subsequently, Apple
responded to a lawsuit brought against it by Nokia with a countersuit, claiming that Nokia infringed
13 Apple patents.
In January 2010, Apple announced iPad, a high-resolution, Multi-Touch display device for browsing
the web, reading, sending email, and viewing entertainment content.
In March 2010, Apple filed a lawsuit against HTC for infringing of 20 Apple patents related to the
iPhone's user interface, underlying architecture and hardware. In the next month, the company's
iPad, which was announced in January 2010, was made available in the US, Australia, Canada,
France, Germany, Italy, Japan, Spain, Switzerland and the UK, and sold 300,000 units on the first
day of its launch in the US. Subsequently in April 2010, the company previewed its iPhone OS 4
software and released a beta version of the software to iPhone Developer Program members.
The company launched iPad in nine more countries, including Australia, Canada, France, Germany,
Italy, Japan, Spain, Switzerland and the UK in May 2010.In the following month, Apple introduced
the new iPhone 4 featuring FaceTime, which allows video calling, and Apple’s new Retina display
for super crisp text, images and video.
In July 2010, Apple released Safari 5.0.1 with extensions support allowing developers to create
extensions with HTML5, CSS3 and JavaScript web standards. In the same month, the iPhone 4 was
launched in 17 more countries. Also in the month, Apple updated its all-in-one iMac line, with the
latest Intel Core i3, Core i5 and Core i7 processors and powerful new graphics.
Apple announced the new iPod touch in September 2010, with new features including Retina display,
FaceTime video calling, HD video recording, Apple’s A4 chip, 3-axis gyro, iOS 4.1 and Game Center.
In the same month, Apple introduced iTunes 10 with Ping, a new music-oriented social network.
Subsequently, Apple announced the new Apple TV which allows viewers to watch HD movies and
TV shows.
In October 2010, Apple introduced the Apple Store in China (apple.com.cn) to shop online for Apple
products. In the same month, Apple unveiled an all new MacBook Air. In the same month, Verizon
Wireless and Apple announced the availability of iPad at over 2,000 Verizon Wireless Stores in the
US.
The company announced that iOS 4.2, the latest version of Apple's mobile operating system, is
available for download for iPad, iPhone and iPod touch in November 2010. In the same month,
Oracle and Apple launched the OpenJDK project for Mac OS X. Subsequently, Apple and The
Dentsu Group formed a partnership to expand Apple’s iAd mobile advertising network to Japan in
early 2011. As part of the agreement, Dentsu will be responsible for the selling and creative execution
of iAds in Japan, and Apple will host, target and deliver the iAds to its iPhone and iPod touch users.
In January 2011, Verizon Wireless launched the iPhone on its network, ending the exclusivity of
AT&T. In the same month, Apple launched the Mac App Store with more than 1,000 free and paid
applications.
Apple Inc.
© Datamonitor
Page 10
Apple Inc.
History
Apple updated its MacBook Pro family with next generation processors and graphics, high-speed
Thunderbolt I/O technology and a new FaceTime HD camera in February 2011. In the same month,
Apple introduced iPad 2, featuring a new design that is 33% thinner and up to 15% lighter than the
original iPad.
In March 2011, Apple introduced iOS 4.3, the latest version of its mobile operating system, with
faster Safari mobile browsing performance with the Nitro JavaScript engine; iTunes Home Sharing;
enhancements to AirPlay; and the Personal Hotspot feature for sharing an iPhone 4 cellular data
connection over Wi-Fi.
Apple Inc.
© Datamonitor
Page 11
Apple Inc.
Key Employees
KEY EMPLOYEES
Name
Job Title
Board
Steven P. Jobs
Chief Executive Officer
Executive Board
Bill Campbell
Director
Non Executive Board
873684 USD
Millard Drexler
Director
Non Executive Board
1076258 USD
Albert Gore
Director
Non Executive Board
1278431 USD
Andrea Jung
Director
Non Executive Board
52214 USD
Arthur D Levinson
Director
Non Executive Board
849583 USD
Ronald D. Sugar
Director
Non Executive Board
Timothy D. Cook
Chief Operating Officer
Senior Management
59092572 USD
Peter Oppenheimer
Senior Vice President, Chief
Financial Officer
Senior Management
29796666 USD
Ronald B. Johnson
Senior Vice President, Retail
Senior Management
29795443 USD
D. Bruce Sewell
Senior Vice President, General
Counsel and Secretary
Senior Management
29739609 USD
Scott Forstall
Senior Vice President, iPhone
Software Engineering & Platform
Experience
Senior Management
Robert Mansfield
Senior Vice President, Hardware
Engineering
Senior Management
Philip W. Schiller
Senior Vice President, Worldwide
Product Marketing
Senior Management
Bertrand Serlet
Senior Vice President, Software
Engineering
Senior Management
Jeffrey E. Williams
Senior Vice President, Operations
Senior Management
Apple Inc.
© Datamonitor
Compensation
1 USD
Page 12
Apple Inc.
Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
Steven P. Jobs
Board: Executive Board
Job Title: Chief Executive Officer
Since: 1997
Age: 56
Mr. Jobs has been the CEO at Apple since 1997. He is one of the Co-founders of the company. Mr.
Jobs is also a Director at the Walt Disney Company (Disney) since 2006. His experience includes
over a decade of leading a high growth technology company.
Bill Campbell
Board: Non Executive Board
Job Title: Director
Since: 1997
Age: 70
Mr. Campbell has been a Director at Apple since 1997. He has been the Chairman at Intuit since
1998 and a Director at Intuit since 1994. Mr. Campbell is also the Chairman of the Board of Trustees
at Columbia University and a Director of The National Football Foundation & College Hall of Fame.
Millard Drexler
Board: Non Executive Board
Job Title: Director
Since: 1999
Age: 66
Mr. Drexler has been a Director at Apple since 1999. He has been the Chairman and CEO at J.Crew
Group since 2003. Previously, Mr. Drexler was the CEO at The Gap from 1995 and President from
1987 to 2002. He was also a Director at Gap from 1983 to 2002.
Albert Gore
Board: Non Executive Board
Job Title: Director
Since: 2003
Age: 62
Apple Inc.
© Datamonitor
Page 13
Apple Inc.
Key Employee Biographies
Mr. Gore has been a Director at Apple since 2003. He has served as the Chairman at Current TV
since 2002, Chairman at Generation Investment Management since 2004 and a Partner at Kleiner
Perkins Caufield & Byers since 2007. Mr. Gore is also the Chairman of the Alliance for Climate
Protection.
Andrea Jung
Board: Non Executive Board
Job Title: Director
Since: 2008
Age: 52
Ms. Jung has been a Director at Apple since 2008. She has been the Chairman and CEO at Avon
since 2001, having previously served as the CEO at Avon since 1999 and as a Director since 1998.
Since 1998, Ms. Jung has been a Director at General Electric Company, where she serves on the
Management Development and Compensation Committee and the Nominating and Corporate
Governance Committee. She is also a Member at the New York Presbyterian Hospital Board of
Trustees, a Director at Catalyst, a nonprofit corporate membership research and advisory organization,
and the Chairman at the World Federation of Direct Selling Associations.
Arthur D Levinson
Board: Non Executive Board
Job Title: Director
Since: 2000
Age: 60
Dr. Levinson has been a Director at Apple since 2000. He has been the Chairman at Genentech
since 1999. Previously, Dr. Levinson also served as the CEO at Genentech from 1995 to 2009.
Since 2009, Dr. Levinson has served as an Advisor to Genentech's Research and Early Development
center and as a Member of the Scientific Resource Board, Genentech's external advisory group.
Dr. Levinson is a Director at NGM Biopharmaceuticals. He also serves as a Director at Amyris, on
the Board of Scientific Consultants of the Memorial Sloan-Kettering Cancer Center, on the Industrial
Advisory Board of the California Institute for Quantitative Biomedical Research, on the Advisory
Council for the Princeton University Department of Molecular Biology, on the Advisory Council for
the Lewis-Sigler Institute for Integrative Genomics and on the Executive Council of TechNet.
Ronald D. Sugar
Board: Non Executive Board
Job Title: Director
Since: 2010
Age: 62
Apple Inc.
© Datamonitor
Page 14
Apple Inc.
Key Employee Biographies
Dr. Sugar has been a Director at Apple since 2010. He is the retired Chairman of the Board and
CEO at Northrop Grumman. Dr. Sugar was the Chairman and CEO at Northrop Grumman from 2003
until 2009 and the President and Chief Operating Officer from 2001 until 2003. He was the President
and Chief Operating Officer at Litton Industries from 2000 until the company was acquired by Northrop
Grumman in 2001. He was earlier the Chief Financial Officer at TRW. He is also a Director at Amgen
since 2010 and at Chevron since 2005. Dr. Sugar is a Member of the National Academy of
Engineering, the Trustee of the University of Southern California, a Director of the Los Angeles
Philharmonic Association and the national trustee of the Boys and Girls Clubs of America.
Timothy D. Cook
Board: Senior Management
Job Title: Chief Operating Officer
Age: 50
Mr. Cook has been the Chief Operating Officer at Apple. He joined the company in 1998. Mr. Cook
also served as the Executive Vice President, Worldwide Sales and Operations from 2002 to 2005.
In 2004, his responsibilities were expanded to include the company's Macintosh hardware engineering.
From 2000 to 2002, Mr. Cook served as the Senior Vice President, Worldwide Operations, Sales,
Service and Support. From 1998 to 2000, he served as the Senior Vice President, Worldwide
Operations. Prior to joining the company, Mr. Cook was the Vice President, Corporate Materials at
Compaq. Prior to his work at Compaq, Mr. Cook was the Chief Operating Officer of the Reseller
Division at Intelligent Electronics. He also spent 12 years with IBM, most recently as the Director of
North American Fulfillment. Mr. Cook also has served as a Director at NIKE since 2005.
Peter Oppenheimer
Board: Senior Management
Job Title: Senior Vice President, Chief Financial Officer
Age: 48
Mr. Oppenheimer has been the Senior Vice President, Chief Financial Officer at Apple. He joined
the company in 1996. Mr. Oppenheimer also served as the Vice President and Corporate Controller
and as the Senior Director of Finance for the Americas region of the company. Prior to joining Apple,
Mr. Oppenheimer was the Chief Financial Officer of one of the four business units at Automatic Data
Processing. Prior to joining ADP, Mr. Oppenheimer spent six years in the IT Consulting Practice at
Coopers and Lybrand.
Ronald B. Johnson
Board: Senior Management
Job Title: Senior Vice President, Retail
Age: 52
Apple Inc.
© Datamonitor
Page 15
Apple Inc.
Key Employee Biographies
Mr. Johnson has been the Senior Vice President, Retail at Apple. He joined the company in 2000.
Prior to joining Apple, Mr. Johnson spent 16 years with Target Stores, most recently as the Senior
Merchandising Executive.
D. Bruce Sewell
Board: Senior Management
Job Title: Senior Vice President, General Counsel and Secretary
Age: 52
Mr. Sewell has been the Senior Vice President, General Counsel and Secretary at Apple. He joined
the company in 2009. Prior to Apple, he served as the Senior Vice President, General Counsel at
Intel from 2005. Mr. Sewell also served as Intel's Vice President, General Counsel from 2004 to
2005 and as the Vice President of Legal and Government Affairs, Deputy General Counsel from
2001 to 2004. Prior to joining Intel in 1995, Mr. Sewell was a Partner in the law firm of Brown and
Bain PC.
Scott Forstall
Board: Senior Management
Job Title: Senior Vice President, iPhone Software Engineering & Platform Experience
Age: 42
Mr. Forstall has been the Senior Vice President, iPhone Software Engineering & Platform Experience
at Apple. He joined the company in 1997 upon the company's acquisition of NeXT. Mr. Forstall also
has served as the Vice President of Platform Experience while leading several releases of Mac OS
X, and as Director of Application Frameworks. Prior to joining the company, Mr. Forstall worked at
NeXT developing core technologies.
Robert Mansfield
Board: Senior Management
Job Title: Senior Vice President, Hardware Engineering
Since: 2008
Age: 50
Mr. Mansfield has been the Senior Vice President, Hardware Engineering at Apple since 2008. He
joined the company in 1999 as the Vice President of Development Engineering. Prior to joining the
company, Mr. Mansfield was the Vice President of Engineering at Raycer Graphics and a Senior
Director at Silicon Graphics.
Philip W. Schiller
Apple Inc.
© Datamonitor
Page 16
Apple Inc.
Key Employee Biographies
Board: Senior Management
Job Title: Senior Vice President, Worldwide Product Marketing
Age: 50
Mr. Schiller has been the Senior Vice President, Worldwide Product Marketing at Apple. He rejoined
the company in 1997. Prior to rejoining the Company, Mr. Schiller was the Vice President of Product
Marketing at Macromedia from 1995 to 1997 and the Director of Product Marketing at FirePower
Systems from 1993 to 1995. Prior to that, Mr. Schiller spent six years at the company in various
marketing positions.
Bertrand Serlet
Board: Senior Management
Job Title: Senior Vice President, Software Engineering
Age: 50
Mr. Serlet has been the Senior Vice President, Software Engineering at Apple. He joined the company
in 1997 upon the company's acquisition of NeXT and also served as the Vice President of Platform
Technology. At NeXT, Mr. Serlet held several engineering and managerial positions, including
Director of Web Engineering.
Jeffrey E. Williams
Board: Senior Management
Job Title: Senior Vice President, Operations
Since: 2010
Age: 47
Mr. Williams has been the Senior Vice President, Operations at Apple. He joined the company in
1998 and assumed his current position in July 2010. Mr. Williams also served as the Head of
Worldwide Procurement and Vice President of Operations at the company. Prior to joining the
company, Mr. Williams worked in a number of operations and engineering roles at IBM from 1985
to 1998.
Apple Inc.
© Datamonitor
Page 17
Apple Inc.
Major Products and Services
MAJOR PRODUCTS AND SERVICES
Apple is a major player in the PCs, portable digital music players, and mobile devices. Some of the
key products and services of the company include:
MAC products:
Mac Pro
Mac mini
MacBook
MacBook Air
MacBook Pro
iMac
Mac Accessories:
Magic Mouse
Magic Trackpad
Keyboard
Cinema Displays
Apple Battery Charger
Wi-Fi Base Stations:
AirPort Express
AirPort Extreme
Time Capsule
Servers:
Xsan
Mac OS X Server
Mac OS X Snow Leopard
Applications:
iLife
iWork
QuickTime 7
AppleWorks
Aperture
Final Cut Studio
Final Cut Server
Final Cut Express HD
Logic Studio
Logic Express
Apple Remote Desktop 3
iPod:
Apple Inc.
© Datamonitor
Page 18
Apple Inc.
Major Products and Services
iPod touch
iPod classic
iPod nano
iPod shuffle
iPhone:
iPhone 3GS
iPhone 3G
Apps for iPhone
Accessories
iPad:
iPad with 3G
iOS4
iTunes:
Music
Movies
TV Shows
Audio books
Games
Applications
Podcasts
Apple Inc.
© Datamonitor
Page 19
Apple Inc.
Revenue Analysis
REVENUE ANALYSIS
Apple
The company recorded revenues of $65,225 million during the financial year ended September 2010
(FY2010), an increase of 52% over 2009. In FY2010, Americas, the company's largest geographic
market, accounted for 37.6% of the total revenues.
The company's primary reporting format is by geographic divisions. The company also reports its
revenues by eight product divisions: iPhone (accounted for 38.6% of total revenues in FY2010);
portables (17.3%); iPods (12.7%); desktops (9.5%); iPad (7.6%); other music related products and
services (7.6%); software, service and other (3.9%); and peripherals and other hardware (2.8%).
Revenues by product divisions
In FY2010, the iPhone and related products and services division recorded revenues of $25,179
million, an increase of 93.2% over 2009.
The portables division recorded revenues of $11,278 million in FY2010, an increase of 18.3% over
2009.
The iPod division recorded revenues of $8,274 million in FY2010, an increase of 2.3% over 2009.
The desktops division recorded revenues of $6,201 million in FY2010, an increase of 43.4% over
2009.
The iPad and related products and services division recorded revenues of $4,958 million in FY2010.
The iPad was launched by the company in FY2010.
The other music related products and services division recorded revenues of $4,948 million in
FY2010, an increase of 22.6% over 2009.
The software, service and other sales division recorded revenues of $2,573 million in FY2010, an
increase of 6.7% over 2009.
The peripherals and other hardware division recorded revenues of $1,814 million in FY2010, an
increase of 23% over 2009.
Revenues by Geography
Americas, Apple's largest geographical market, accounted for 37.6% of the total revenues in FY2010.
Revenues from Americas reached $24,498 million in 2010, an increase of 29.1% over 2009.
Apple Inc.
© Datamonitor
Page 20
Apple Inc.
Revenue Analysis
Europe accounted for 28.7% of the total revenues in FY2010. Revenues from Europe reached
$18,692 million in 2010, an increase of 58.3% over 2009.
Japan accounted for 6.1% of the total revenues in FY2010. Revenues from Japan reached $3,981
million in 2010, an increase of 74.7% over 2009.
Asia-Pacific accounted for 12.7% of the total revenues in FY2010. Revenues from Asia-Pacific
reached $8,256 million in 2010, an increase of 159.7% over 2009.
Retail* accounted for 15% of the total revenues in FY2010. Revenues from retail reached $9,798
million in 2010, an increase of 47.2% over 2009.
Note: *The retail segment operates Apple retail stores in 11 countries, including the US.
Apple Inc.
© Datamonitor
Page 21
Apple Inc.
SWOT Analysis
SWOT ANALYSIS
Apple or "the company" is engaged in design, development and marketing of personal computers,
media devices, and portable digital music players. The company also sells a variety of related
software, services, peripherals, networking solutions, and third-party digital content and applications.
The Apple brand is well recognized amongst most consumers. The company's strong brand enables
it to command a premium pricing and create significant demand for its products such as iMac, iPod,
iPhone and iPad. Strong brand image gives the company an edge over regional and global
competitors. However, rising popularity of Android may affect the attractiveness of Apple's iOS
affecting the market share of Apple.
Strengths
Weaknesses
Strong brand image provides an edge over
competitors
Robust financial performance strengthens
investors' confidence and provides capital
for future growth avenues
Focused R&D driving innovation and
consolidating its market position
Patent infringement lawsuit may affect
financial condition and operating results
Product recalls may harm Apple's reputation
and add significant warranty and other
expenses
Opportunities
Threats
Strong growth in smartphone and tablet
markets to boost Apple's revenues
Robust outlook for mobile advertising
market provides growth opportunity
Rising popularity of Google Android may
affect its market share
Frequent absence of Steve Jobs to impact
high growth sustenance levels
Intense competition may affect revenues
and profitability
Dependence on specific suppliers may
affect its operations
Strengths
Strong brand image provides an edge over competitors
The Apple brand is well recognized amongst most consumers. Apple's products enjoy a high level
of brand awareness and brand recognition throughout all its markets. This is evident with the rapid
sales of new Apple launches. For instance, net sales of iPad and related products and services was
$5 billion and unit sales of iPad were 7.5 million during 2010. iPad was released in the US in April
2010 and in various other countries over the remainder of 2010. Also, the company sold 7.33 million
Apple Inc.
© Datamonitor
Page 22
Apple Inc.
SWOT Analysis
iPads in the first quarter of 2011. Apple leverages its brand image to differentiate its product offering
and drive sales. The company's strong brand enables it to command a premium pricing and create
significant demand for its products such as iMac, iPod, iPhone and iPad. In FY2010, net sales of
iPhone increased 93% to $25.2 billion. Also, the net sales of Mac desktops and portables increased
43% and 18%, respectively, while net sales of other music related products and services increased
23% compared to 2009.
According to industry sources, Apple is the fourth largest player in the global mobile phone market.
The company holds a market share of approximately 5% and trails Nokia, Samsung and LG
Electronics, which hold 29%, 18.5% and 6.5%, respectively. Moreover, in the global smartphone
market, Apple's iOS platform is the third largest player, with a market share of approximately 18.5%.
The company is projected to take the second spot by overtaking the Symbian platform by the end
of 2011. Strong brand image gives the company an edge over regional and global competitors.
Robust financial performance strengthens investors' confidence and provides capital for future growth
avenues
Apple reported robust financial performance in the past few years. The company's total revenue
increased to $65,225 million in FY2010 from $19,315 million in 2006, representing a compounded
annual growth rate (CAGR) of 36%. The company's net income rose at a CAGR of 63% to $14,013
million from $1,989 million in 2006. Following the trend, Apple's net income margin also improved
to 21.5% in 2010 from 10.3% 2006.
Strong operating performance has resulted in higher cash and cash equivalents for the company.
The company's cash and cash equivalents stood at $51,011 million in FY2010, which grew at a
CAGR of 50% from $10,110 million in 2006. Strong growth in revenues and cash flows indicates
the company's robust financial position, which strengthens investors' confidence, as well as allows
it to invest in future growth avenues.
Focused R&D driving innovation and consolidating its market position
Apple has a strong focus on research and development (R&D) as continual investment in R&D is
critical for the development and enhancement of innovative products and technologies. In addition
to evolving its PCs and related solutions, the company continues to capitalize on the convergence
of the PC, digital consumer electronics and mobile communications by creating and refining
innovations, such as the iPod, iPhone, iTunes Store, Apple TV and iPad. Apple leverages its unique
ability to design and develop its own operating system, hardware, application software, and services
to provide its customers new products and solutions with superior ease-of-use, seamless integration,
and innovative industrial design.
The company's R&D expenditure was $1,782 million, $1,333 million and $1,109 million in FY2010,
2009 and 2008, respectively. The company's research and development spending is focused on
further developing its existing Mac line of personal computers; the Mac OS X and iOS operating
systems; application software for the Mac; iPhone, iPad and iPod and related software. It also plans
to develop new digital lifestyle consumer and professional software applications and invest in new
Apple Inc.
© Datamonitor
Page 23
Apple Inc.
SWOT Analysis
product areas and technologies in coming years. Strong R&D has enabled the company to continually
launch new products and upgrade the existing ones. In March 2011, the company introduced iPad
2, the next generation of iPad featuring an entirely new design that is 33% thinner and up to 15%
lighter than the original iPad.
Apple's strong focus on research and development has led to the launch of innovative products such
as iPod, iPhone and iPad enhancing its brand image and consolidating its market position.
Weaknesses
Patent infringement lawsuit may affect financial condition and operating results
The company is involved in legal complaints relating to patent infringement. For example, in January
2010, Nokia filed a revised suit against Apple with the US International Trade Commission (ITC),
alleging that Apple has infringed Nokia's patents in almost all of its mobile phones, portable music
players, and computers. Motorola Mobility had filed complaints against the company in the US District
Court for the Districts of Florida, Illinois, Delaware and in the International Trade Commission (ITC).
These complaints include claims of patent infringement related to certain of the company's products.
Unfavorable verdict in any of the matters related to patent infringement or other intellectual property
rights may affect the company's financial condition and operating results.
Product recalls may harm Apple's reputation and add significant warranty and other expenses
The company's products and services experience quality problems from time to time. Apple sells
highly complex hardware and software products and services that can contain defects in design and
manufacture. Defects may also occur in components and products that the company purchases
from third parties. There can be no assurance the company will be able to detect and fix all defects
in the hardware, software and services it sells.
For instance, in 2010, due to antenna problems in the newly launched iPhone 4 smartphone, demands
for product recall were raised. Instead of the complete product recall, the company offered iPhone
4 customers a free case that will mitigate reception problems. Similarly, in 2008, Apple announced
Ultracompact USB Adapter Exchange Program. Under certain conditions, the new Ultracompact
Apple USB power adapter's metal prongs broke off and remained in a power outlet, creating the risk
of electric shock. Therefore, the company decided to exchange every Ultracompact power adapter
for a new redesigned adapter, free of charge. Product defects may harm Apple's reputation and add
significant warranty and other expenses.
Opportunities
Strong growth in smartphone and tablet markets to boost Apple's revenues
Apple Inc.
© Datamonitor
Page 24
Apple Inc.
SWOT Analysis
The worldwide smartphones market segment is forecast to record strong growth in coming years.
The shipments for smartphones are expected to exceed 400 million globally.The number is expected
to reach approximately 850 million by the end of 2013. Apple is the third largest player in the
smartphone market segment in the US since launching its first mobile device, iPhone, in 2007.
iPhone is a multimedia and internet-enabled mobile phone, combining mobile phone, widescreen
iPod and internet functionalities and applications that support email, web browsing and maps on a
mobile phone. The company also experienced strong growth in its iPhone business in recent years.
Its iPhone and related offerings revenues almost doubled, at a rate of 93.2% in 2010 over 2009, to
record revenues of $25,179 million from $13,033 million in 2009.
Moreover, the demand for tablets is increasing over the years. Globally, tablet shipments are expected
to touch 150 million units by 2013. Apple launched the iPad in January 2010. In FY2010, the iPad
generated $5 billion in revenues and showed unit sales of 7.5 million. In the first quarter of 2011,
iPad sales were 7.33 million.
Mobile apps are one of the most important factors in driving sales of smartphones. Apple is the
strongest player in the mobile apps market, with approximately 350,000 apps. Its closest competitor,
the Android market has 250,000 apps, while Blackberry and Windows Phone 7 has 20,000 and
9,000 apps respectively. The mobile app market is expected to exceed $9 billion by 2014. With its
innovative products such as iPhone and iPad, Apple is in a position to increase its share in the
growing smartphone and tablet market.
Robust outlook for mobile advertising market provides growth opportunity
Global mobile advertising market is forecast to recover and have a modest growth in near future.
According to industry sources the mobile advertising market is forecast to reach approximately $25
billion globally by the year 2015, riding on the strong growth of smartphones in both developed and
emerging nations.
In April 2010, Apple launched its mobile advertising platform, iAd. Apple had earlier acquired mobile
ad platform Quattro Wireless to take a foothold in the mobile ad market. iAds combine the emotion
of TV advertising with the interactivity of Internet advertising, giving advertisers a dynamic and
powerful new way to bring motion and emotion to mobile users. iAd launched its mobile ad campaigns
from leading global brands including AT&T, Best Buy, Campbell Soup Company, Chanel, Citi,
DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner
Broadcasting System, Unilever and The Walt Disney Studios. Robust outlook for mobile advertising
market provides a growth opportunity for the company.
Threats
Rising popularity of Google Android may affect its market share
Apple Inc.
© Datamonitor
Page 25
Apple Inc.
SWOT Analysis
The Google Android OS for smartphone is gaining rapid popularity. With the acquisition of Android
Inc. in 2005, and the subsequent launch of Google’s mobile OS “Android” changed the competitive
landscape of smartphone business globally. According to Andy Rubin, Google's Vice President of
Engineering and one of the cofounders of the earlier Android Inc., approximately 350,000 Android
smartphone are activated daily. In comparison with this, every day approximately 150,000 iPhone
are activated. Additionally, Android is fast emerging as the preferred mobile OS for OEMs with
multiple OEMs using the platform for their devices. HTC and Samsung have been aggressively
pushing new mobile phones based on the Android platform. Also, Sony and Motorola are also actively
leveraging the Android platform.
Moreover, the online application store for Android applications “Android Market” is growing at a rapid
pace. The Android Market currently offers approximately 250,000 apps, compared to 350,000 offered
by Apple's App Store, although Android has been a late entrant in the market. Increasing popularity
of Android may affect the attractiveness of Apple's iOS affecting the market share of Apple.
Frequent absence of Steve Jobs to impact high growth sustenance levels
Apple has been usually viewed along with its charismatic and visionary founder, Mr. Jobs who has
always been instrumental in managing the growth of the company and leading it to its current size.
However, he is not keeping in good health since last several years and will be proceeding on third
long medical leave since 2004. This announcement has raised serious concerns about the health
of Mr. Jobs, a survivor of pancreatic cancer. In the near past, he had taken a six-month leave to
undergo a liver transplantation. The announcement of leave resulted in an 8% drop in Apple's share
price.
Mr. Jobs' involvement with the company is highly weighed by all the stakeholders, as he has been
instrumental in Apple's success after he rescued the company in 1996 by returning from a 12 year
absence. The sequential launch of many high end tech-gadgets such as iPhone in 2007 followed
by iPad in 2010 has enabled the company to create iconic brands for itself with the sleek handheld
devices in techo-gadgets space. Apple is currently also the largest technology company in terms of
market capitalization.
The absence of Steve Jobs is feared to delay the launch of next level iPad-II series and other related
launches, which may sublime the growth sustainability of the company. Apple needs more dynamic
innovations if it has to continue its momentum of expanding. Without Mr. Jobs' full-time involvement,
that may turn out to be a challenge.
Intense competition may affect revenues and profitability
Apple operates in a highly competitive and rapidly evolving technology industry. The company faces
intense competition in consumer electronics, PCs and related software and peripheral products
markets. Rapid technological advances in both hardware and software, increasing the capabilities
and use of PCs and digital electronic devices, characterize these markets. Rapid changes in the
technology have resulted in the frequent introduction of new products with competitive prices, features
and performance characteristics.
Apple Inc.
© Datamonitor
Page 26
Apple Inc.
SWOT Analysis
The company's competitors include Microsoft, Dell, Hewlett-Packard, Fujitsu, Samsung Electronics,
Sony and Toshiba, among others. The company is currently focused on market opportunities related
to mobile communication devices including the iPhone. The mobile communications industry is highly
competitive with several large, well-funded and experienced competitors. Further, the launch of
iPhone spiked the demand for smartphone with touch functionality and other innovative features.
This made several players in the mobile phone market, such as Nokia, HTC, RIM, Palm, Samsung
and LG Electronics, launch their respective smartphone devices in the market creating significant
competition. Intense competition in various markets in which Apple operates may result in the price
erosion which may affect the company's revenues and profitability in the long run.
Dependence on specific suppliers may affect its operations
The company depends on third party suppliers for various components used in its products. Although
most components essential to the company's business are generally available from multiple sources,
certain key components including microprocessors, enclosures, certain liquid crystal displays (LCDs),
certain optical drives, and application-specific integrated circuits (ASICs) are currently obtained by
the company from single or limited sources. Moreover, many key components that are available
from multiple sources including NAND flash memory, dynamic random access memory (DRAM) and
certain LCDs, are subject to industry-wide shortages and significant commodity pricing fluctuations.
The company's dependence on few suppliers makes it susceptible to supply and pricing risks, which
may adversely affect the company's operations.
Apple Inc.
© Datamonitor
Page 27
Apple Inc.
Top Competitors
TOP COMPETITORS
The following companies are the major competitors of Apple Inc.
Dell Inc.
Fujitsu Limited
Hewlett-Packard Company
International Business Machines Corporation
Samsung Electronics Co., Ltd.
Sony Corporation
Toshiba Corporation
Research In Motion Limited
Nokia Corporation
Sony Ericsson Mobile Communications AB
Lenovo Group Limited
Motorola, Inc.
Microsoft Corporation
Acer Inc
LG Electronics, Inc.
Oracle Corporation
Google Inc.
Apple Inc.
© Datamonitor
Page 28
Apple Inc.
Company View
COMPANY VIEW
An excerpt from the ‘Management's Discussion and Analysis of Financial Condition and Results of
Operations’ section is given below. The statement has been taken from the company’s 10-K filing
for fiscal year 2010.
Fiscal Year 2010 versus 2009
Net sales during 2010 increased $22.3 billion or 52% compared to 2009. Several factors contributed
positively to these increases, including the following:
Net sales of iPhone and related products and services were $25.2 billion in 2010 representing an
increase of $12.1 billion or 93% compared to 2009. Net sales of iPhone and related products and
services accounted for 39% of the Company's total net sales for the year. iPhone unit sales totaled
40 million in 2010, which represents an increase of 19.3 million or 93% compared to 2009. iPhone
year-over-year growth was attributable primarily to continued growth from existing carriers, expanded
distribution with new international carriers and resellers, and strong demand for iPhone 4, which
was released in the U.S. in June 2010 and in many other countries over the remainder of 2010. As
of September 25, 2010, the Company distributed iPhone in 89 countries through 166 carriers.
Net sales of iPad and related products and services were $5.0 billion and unit sales of iPad were
7.5 million during 2010. iPad was released in the U.S. in April 2010 and in various other countries
over the remainder of 2010. As of September 25, 2010, the Company distributed iPad in 26 countries.
The Company distributes iPad through its direct channels, certain cellular network carriers' distribution
channels and certain third-party resellers. Net sales of iPad and related products and services
accounted for 8% of the Company's total net sales for 2010, reflecting the strong demand for iPad
during the five months following its release.
Mac net sales increased by $3.6 billion or 26% in 2010 compared to 2009, and Mac unit sales
increased by 3.3 million or 31% in 2010 compared to 2009. Net sales per Mac unit sold decreased
by 4% in 2010 compared to 2009 due primarily to lower average selling prices of Mac portable
systems. Net sales of the Company's Macs accounted for 27% of the Company's total net sales in
2010 compared to 32% in 2009. During 2010, net sales and unit sales of the Company's Mac portable
systems increased by 18% and 25%, respectively, primarily attributable to strong demand for MacBook
Pro, which was updated in April 2010. Net sales and unit sales of the company's Mac desktop
systems increased by 43% and 45%, respectively, as a result of higher sales of iMac, which was
updated in July 2010.
Net sales of other music related products and services increased $912 million or 23% during 2010
compared to 2009. This increase was due primarily to growth of the iTunes Store which generated
total net sales of $4.1 billion for 2010. The results of the iTunes Store reflect growth of the iTunes
App Store, continued growth in the installed base of iPhone, iPad, and iPod customers, and the
expansion of third-party audio and video content available for sale and rent via the iTunes Store.
Apple Inc.
© Datamonitor
Page 29
Apple Inc.
Company View
The Company continues to expand its iTunes content and applications offerings around the world.
Net sales of other music related products and services accounted for 8% of the Company's total net
sales for 2010.
Net sales of iPods increased $183 million or 2% during 2010, while iPod unit sales declined by 7%
during 2010 compared to 2009. Net sales per iPod unit sold increased by 10% to $164 in 2010
compared to 2009, due to a shift in product mix toward iPod touch. iPod touch had strong growth in
each of the Company's reportable operating segments. Net sales of iPods accounted for 13% of the
Company's total net sales for the year compared to 19% in 2009.
Fiscal Year 2009 versus 2008
Net sales during 2009 increased $5.4 billion or 14% compared to 2008. Several factors contributed
positively to these increases, including the following:
iPhone revenue and net sales of related products and services amounted to $13.0 billion in 2009,
an increase of $6.3 billion or 93% compared to 2008. The year-over-year iPhone revenue growth is
largely attributable to the year-over-year increase in iPhone handset unit sales. iPhone handset unit
sales totaled 20.7 million during 2009, which represents an increase of 9.1 million or 78% during
2009 compared to 2008. This growth is attributed primarily to expanded distribution and strong
overall demand for iPhones. iPhone 3GS was released in the U.S. on June 19, 2009 and in many
other countries over the remainder of 2009.
Net sales of other music-related products and services increased $696 million or 21% during 2009
compared to 2008. The increase was due predominantly to increased net sales of third-party digital
content and applications from the iTunes Store, which experienced double-digit growth in each of
the Company's geographic segments during 2009 compared to the same period in 2008. The
Company believes this is attributable primarily to continued interest in and growth of the iTunes App
Store, continued growth in the Company's base of iPhone, iPad, and iPod customers, and the
expansion of third-party audio and video content available for sale and rent via the iTunes Store.
Partially offsetting the favorable factors discussed above, net sales during 2009 were negatively
impacted by certain factors, including the following: Net sales of iPods decreased $1.1 billion or 12%
during 2009 compared to 2008. iPod unit sales decreased by 1% during 2009 compared to 2008.
Net sales per iPod unit sold decreased 11% to $149 in 2009 compared to 2008, resulting from lower
average selling prices across all of the iPod product lines, due primarily to price reductions taken
with the introduction of new iPods in September 2009 and September 2008 and a stronger U.S.
dollar, offset partially by a higher mix of iPod touch sales.
Mac net sales declined 3% during 2009 compared to 2008, while Mac unit sales increased by 7%
over the same period. Net sales per Mac unit sold decreased by 10% during 2009 compared to
2008, due primarily to lower average selling prices across all Mac portable and desktop systems
and a stronger U.S. dollar. Net sales of Macs accounted for 32% of the Company's total net sales
for 2009. During 2009, Mac portable systems net sales and unit sales increased by 9% and 20%,
Apple Inc.
© Datamonitor
Page 30
Apple Inc.
Company View
respectively, compared to 2008. This growth was driven by strong demand for MacBook Pro, which
was updated in June 2009 and October 2008, and which experienced double-digit net sales and
unit growth in each of the Company's reportable operating segments compared to the same period
in 2008. The Company also had a higher mix of Mac portable systems sales, which is consistent
with overall personal computer market trends. Net sales and unit sales of the Company's Mac desktop
systems decreased by 23% and 14%, respectively, during 2009 compared to 2008. The decrease
in net sales of Mac desktop systems was due mainly to a shift in product mix towards lower-priced
desktops, lower average selling prices across all Mac desktop systems and a stronger US dollar.
Apple Inc.
© Datamonitor
Page 31
Apple Inc.
Locations and Subsidiaries
LOCATIONS AND SUBSIDIARIES
Head Office
Apple Inc.
1 Infinite Loop
Cupertino
California 95014
USA
P:1 408 996 1010
F:1 408 974 2113
http://www.apple.com
Other Locations and Subsidiaries
Apple Canada
7495 Birchmount Road
Markham
Ontario L3R 5G2
CAN
Apple Ireland
Hollyhill Industrial Estate
Hollyhill
Cork
IRL
Apple Australia
South Sydney
New South Wales 1235
AUS
Apple China
Beijing No. 1 Jianguomenwai Avenue
Chaoyang District
International Trade Building
12th Floor
Block 3
CHN
Apple Hong Kong
2401 Tower One
Times Square
Causeway Bay
HKG
Apple India Private Limited
5/F Du Parc Trinity
17 Mahatma Gandhi Road
Bangalore
560-001
IND
Apple Malaysia Sdn Bhd.
Unit 02 Plaza Level
Block A Wisma Tenggara
No 45 Medan Setia 1
Plaza Damansara Bukit Damansara
Kuala Lumpur 50490
MYS
Apple South Asia Pte. Ltd.
7 Ang Mo Kio Street 64
Singapore
569086
SGP
Apple Inc.
© Datamonitor
Page 32
Apple Inc.
Locations and Subsidiaries
Apple Korea
Kangnam-gu
Seoul 159
ASEM Tower
32 stories 32.01
KOR
iTunes SARL
8 rue Heinrich Heine
L-1720
LUX
Apple Asia LLC
333 Tun Hwa South Road
Sec A
16th Floor
TWN
Apple Japan
163-1480
3-20-2 Nishi-Shinjuku
Shinjuku-ku
Tokyo
Tokyo Opera City
JPN
Apple Inc.
© Datamonitor
Page 33