Apple
APPLE COMPUTER INC (Form: 8-K, Received: 07/19/2006 16:29:37)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

 

July 19, 2006

Date of Report (date of earliest event reported)

 

APPLE COMPUTER, INC.

(Exact name of Registrant as specified in its charter)

 

California

0-10030

94-2404110

(State or other

(Commission File

(I.R.S. Employer

jurisdiction of

Number)

Identification Number)

incorporation)

 

 

 

1 Infinite Loop, Cupertino, CA 95014
(Address of principal executive offices)

 

(408) 996-1010
(Registrant’s telephone number, including area code)

 

Not Applicable
(Former name or former address, if changed
since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

Item 2.02               Results of Operations and Financial Condition

 

On July 19, 2006, Apple Computer, Inc. (Apple) issued a press release regarding Apple’s financial results for its third fiscal quarter ended July 1, 2006 and a related data sheet. A copy of Apple’s press release is attached hereto as Exhibit 99.1 and a copy of the related data sheet is attached hereto as Exhibit 99.2.

 

The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

 Item 9.01              Financial Statements and Exhibits

 

(d) Exhibits

 

The following exhibits are furnished herewith:

 

Exhibit
Number

 

Description

 

 

 

99.1

 

Text of press release issued by Apple Computer, Inc. dated July 19, 2006.

 

 

 

99.2

 

Data sheet issued by Apple Computer, Inc. dated July 19, 2006.

 

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

APPLE COMPUTER, INC.

Date: July 19, 2006

 

 

 

By:

/s/ Peter Oppenheimer

 

 

Peter Oppenheimer
Senior Vice President
and Chief Financial Officer

 

3



 

EXHIBIT INDEX

 

Exhibit
Number

 

Description

 

 

 

99.1

 

Text of press release issued by Apple Computer, Inc. dated July 19, 2006.

 

 

 

99.2

 

Data sheet issued by Apple Computer, Inc. dated July 19, 2006.

 

4


 

Exhibit 99.1

 

Apple Reports Third Quarter Results

Posts Second Highest Quarterly Revenue and Earnings in Company’s History

CUPERTINO, California—July 19, 2006—Apple® today announced financial results for its fiscal 2006 third quarter ended July 1, 2006. The Company posted revenue of $4.37 billion and a net quarterly profit of $472 million, or $.54 per diluted share. These results compare to revenue of $3.52 billion and a net profit of $320 million, or $.37 per diluted share, in the year-ago quarter. Gross margin was 30.3 percent, up from 29.7 percent in the year-ago quarter. International sales accounted for 39 percent of the quarter’s revenue.

 

Apple shipped 1,327,000 Macintosh® computers and 8,111,000 iPods during the quarter, representing 12 percent growth in Macs and 32 percent growth in iPods over the year-ago quarter.

 

“We’re thrilled with the growth of our Mac business, and especially that over 75 percent of the Macs sold during the quarter used Intel processors. This is the smoothest and most successful transition that any of us have ever experienced,” said Steve Jobs, Apple’s CEO. “In addition, iPod continued to earn a US market share of over 75 percent and we are extremely excited about future iPod products in our pipeline.”

 

“We’re very pleased to report the second highest quarterly sales and earnings in Apple’s history, resulting in year-over-year revenue growth of 24 percent and earnings growth of 48 percent,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth quarter of fiscal 2006, we expect revenue of about $4.5 to $4.6 billion. We expect GAAP earnings per diluted share of about $.46 to $.48, including an estimated $.03 per share expense impact from non-cash stock-based compensation, translating to non-GAAP EPS of about $.49 to $.51.”

 

As previously announced, an internal investigation discovered irregularities related to the issuance of certain stock option grants made between 1997 and 2001. A special committee of Apple’s outside directors has hired independent counsel to perform an investigation and the Company has informed the SEC. At this time, based upon the irregularities identified to date, management does not anticipate any material adjustment to the financial results included in this earnings release. However, if additional irregularities are identified by the independent investigation, a material adjustment to the financial information could be required.

 

Apple will provide live streaming of its Q3 2006 financial results conference call utilizing QuickTime®, Apple’s standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Wednesday, July 19, 2006 at http://www.apple.com/quicktime/qtv/earningsq306/ and will also be available for replay. The QuickTime player is available free for Macintosh and Windows users at www.apple.com/quicktime.

 



 

 

This press release contains forward-looking statements about the Company’s estimated revenue and earnings per share, the estimated expense impact of non-cash stock-based compensation, and the potential for adjustments to the financial results included in this earnings release based upon irregularities related to the issuance of certain stock option grants made between 1997 and 2001. These statements involve risks and uncertainties and actual results may differ. Risks and uncertainties include the outcome of the recently-announced investigation into the Company’s historical stock option grants and any potential resulting impact on the Company’s financial statements or results; the effect competitive and economic factors and the Company’s reaction to them may have on consumer and business buying decisions with respect to the Company’s products; possible disruption in commercial activities caused by terrorist activity and armed conflict, such as changes in logistics and security arrangements, and reduced end-user purchases relative to expectations; possible disruption in commercial activity as a result of natural disasters or major health concerns including epidemics; continued competitive pressures in the marketplace; the ability of the Company to successfully evolve its operating system; the potential negative ramifications of the transition of all Macs to Intel microprocessors by the end of calendar 2006, or the announcement of such planned transition, for sales of current or future Mac products with Power PC processors; the ability of the Company to make timely delivery of new products with Intel microprocessors and related hardware and software technological changes and innovations to support Intel microprocessors; the development and availability on acceptable terms of components and services essential to enable the Company to deliver products based on Intel microprocessors in a timely manner; the continued availability on acceptable terms of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the ability of the Company to make timely delivery of new programs, products and successful technological innovations to the marketplace; the effect that product quality problems could have on the Company’s sales and operating profits; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the Company’s dependency on the performance of distributors and other resellers of the Company’s products; the Company’s reliance on the availability of third-party digital content; the Company’s dependency on third-party software developers to timely develop future applications that support Intel microprocessors and Power PC microprocessors; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; and risks associated with the Company’s retail initiative including significant investment cost, uncertain consumer acceptance and potential impact on existing reseller relationships. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 24, 2005, the Company’s Form 10-Q for the quarters ended December 31, 2005 and April 1, 2006, and the Company’s Form 10-Q for the quarter ended July 1, 2006 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

 

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store.

 



 

Press Contact:

Steve Dowling

(408) 974-1896

dowling@apple.com

 

Investor Relations Contacts:

Nancy Paxton

(408) 974-5420

paxton1@apple.com

 

Joan Hoover

(408) 974-4570

hoover1@apple.com

 

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr/), or call Apple’s Media Helpline at (408) 974-2042.

 

© 2006 Apple Computer, Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh and QuickTime are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

 



 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

(In millions, except share amounts)

 

 

 

 

 

 

July 1,

 

September 24,

 

 

 

2006

 

2005

 

ASSETS:

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

8,013

 

$

3,491

 

Short-term investments

 

1,163

 

4,770

 

Accounts receivable, less allowances of $51 and $46, respectively

 

1,089

 

895

 

Inventories

 

213

 

165

 

Deferred tax assets

 

491

 

331

 

Other current assets

 

1,522

 

648

 

Total current assets

 

12,491

 

10,300

 

Property, plant, and equipment, net

 

1,197

 

817

 

Goodwill

 

38

 

69

 

Acquired intangible assets

 

37

 

27

 

Other assets

 

1,386

 

338

 

Total assets

 

$

15,149

 

$

11,551

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

2,513

 

$

1,779

 

Accrued expenses

 

2,507

 

1,705

 

Total current liabilities

 

5,020

 

3,484

 

Non-current liabilities

 

761

 

601

 

Total liabilities

 

5,781

 

4,085

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Common stock, no par value; 1,800,000,000 shares authorized; 852,987,629 and 835,019,364 shares issued and outstanding, respectively

 

4,207

 

3,521

 

Deferred stock compensation

 

 

(60

)

Retained earnings

 

5,145

 

4,005

 

Accumulated other comprehensive income

 

16

 

 

Total shareholders’ equity

 

9,368

 

7,466

 

Total liabilities and shareholders’ equity

 

$

15,149

 

$

11,551

 

 



 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(In millions, except share and per share amounts)

 

 

 

THREE MONTHS ENDED

 

NINE MONTHS ENDED

 

 

 

July 1,

 

June 25,

 

July 1,

 

June 25,

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

4,370

 

$

3,520

 

$

14,478

 

$

10,253

 

Cost of sales (1)

 

3,045

 

2,476

 

10,292

 

7,245

 

Gross margin

 

1,325

 

1,044

 

4,186

 

3,008

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development (1)

 

175

 

145

 

533

 

387

 

Selling, general, and administrative (1)

 

584

 

472

 

1,808

 

1,389

 

Total operating expenses

 

759

 

617

 

2,341

 

1,776

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

566

 

427

 

1,845

 

1,232

 

 

 

 

 

 

 

 

 

 

 

Other income and expense

 

95

 

46

 

252

 

105

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

661

 

473

 

2,097

 

1,337

 

Provision for income taxes

 

189

 

153

 

650

 

432

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

472

 

$

320

 

$

1,447

 

$

905

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.55

 

$

0.39

 

$

1.72

 

$

1.13

 

Diluted

 

$

0.54

 

$

0.37

 

$

1.65

 

$

1.06

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share (in thousands):

 

 

 

 

 

 

 

 

 

Basic

 

851,375

 

815,092

 

840,759

 

804,098

 

Diluted

 

876,368

 

860,688

 

876,971

 

853,105

 


(1)           Stock-based compensation expense was allocated as follows:

 

Cost of sales

 

$

6

 

$

 

$

16

 

$

1

 

Research and development

 

$

12

 

$

2

 

$

40

 

$

4

 

Selling, general, and administrative

 

$

19

 

$

9

 

$

67

 

$

26

 

 



 

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS

 

(In millions, except share and per share amounts)

 

 

 

Three Months Ended July 1, 2006

 

Three Months Ended June 25, 2005

 

 

 

As Reported

 

Non-GAAP
Adjustments

   (a)

Non-GAAP

 

As Reported

 

Non-GAAP
Adjustments

    (a)

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin

 

$

1,325

 

$

6

   (b)

$

1,331

 

$

1,044

 

$

 

$

1,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin Percentage

 

30.3

%

0.1

%(b)

30.4

%

29.7

%

 

29.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

566

 

$

37

   (b)

$

603

 

$

427

 

$

11

   (c)

$

438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin Percentage

 

13.0

%

0.8

%(b)

13.8

%

12.1

%

0.3

%(c)

12.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

$

189

 

$

10

   (d)

$

199

 

$

153

 

$

1

   (d)

$

154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

472

 

$

27

 

$

499

 

$

320

 

$

10

 

$

330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.55

 

 

 

$

0.59

 

$

0.39

 

 

 

$

0.40

 

Diluted

 

$

0.54

 

 

 

$

0.57

 

$

0.37

 

 

 

$

0.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

851,375

 

 

 

851,375

 

815,092

 

 

 

815,092

 

Diluted

 

876,368

 

 

 

876,368

 

860,688

 

 

 

860,688

 


(a)        These adjustments reconcile the Company’s GAAP results of operations to its non-GAAP results of operations. The Company believes that presentation of results excluding non-cash stock-based compensation provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes.  These non-GAAP measures should not be viewed as a substitute for the Company’s GAAP results. The Company adopted the fair-value recognition provisions of SFAS No. 123 revised (123R) to expense stock-based compensation in its fiscal quarter ended December 31, 2005.  Prior to the adoption of SFAS No. 123R, the Company accounted for employee stock-based compensation using the intrinsic value method prescribed by APB No. 25.

 

(b)        These adjustments reflect the non-cash stock-based compensation expense as measured under SFAS No. 123R related to unvested stock awards, including stock options, restricted stock units, and employee stock purchase plan shares.  The fair-value calculated expense as determined on the awards’ grant date is recognized as the requisite service is rendered.

 

(c)         These adjustments reflect the non-cash compensation expense as measured under APB No. 25 related primarily to restricted stock awarded to the Company’s CEO in fiscal 2003 and restricted stock units awarded to selected members of the Company’s senior management team in fiscal 2004 and 2005. Note that neither the Company’s GAAP nor non-GAAP results of operations in fiscal year 2005 included the accounting impact had the Company chosen to apply the fair-value recognition provisions of SFAS No. 123R.

 

(d)        Amount reflects the expected tax impact on the above noted non-GAAP adjustments.

 



 

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS

 

(In millions, except share and per share amounts)

 

 

 

Nine Months Ended July 1, 2006

 

Nine Months Ended June 25, 2005

 

 

 

As Reported

 

Non-GAAP
Adjustments

    (a)

Non-GAAP

 

As Reported

 

Non-GAAP
Adjustments

    (a)

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin

 

$

4,186

 

$

16

   (b)

$

4,202

 

$

3,008

 

$

1

   (c)

$

3,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin Percentage

 

28.9

%

0.1

%(b)

29.0

%

29.3

%

   (c)

29.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

1,845

 

$

123

   (b)

$

1,968

 

$

1,232

 

$

31

   (c)

$

1,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin Percentage

 

12.7

%

0.9

%(b)

13.6

%

12.0

%

0.3

%(c)

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

$

650

 

$

36

   (d)

$

686

 

$

432

 

$

3

   (d)

$

435

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,447

 

$

87

 

$

1,534

 

$

905

 

$

28

 

$

933

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.72

 

 

 

$

1.82

 

$

1.13

 

 

 

$

1.16

 

Diluted

 

$

1.65

 

 

 

$

1.75

 

$

1.06

 

 

 

$

1.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

840,759

 

 

 

840,759

 

804,098

 

 

 

804,098

 

Diluted

 

876,971

 

 

 

876,971

 

853,105

 

 

 

853,105

 


(a)        These adjustments reconcile the Company’s GAAP results of operations to its non-GAAP results of operations. The Company believes that presentation of results excluding non-cash stock-based compensation provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes.  These non-GAAP measures should not be viewed as a substitute for the Company’s GAAP results. The Company adopted the fair-value recognition provisions of SFAS No. 123 revised (123R) to expense stock-based compensation in its fiscal quarter ended December 31, 2005.  Prior to the adoption of SFAS No. 123R, the Company accounted for employee stock-based compensation using the intrinsic value method prescribed by APB No. 25.

 

(b)        These adjustments reflect the non-cash stock-based compensation expense as measured under SFAS No. 123R related to unvested stock awards, including stock options, restricted stock, restricted stock units, and employee stock purchase plan shares.  The fair-value calculated expense as determined on the awards’ grant date is recognized as the requisite service is rendered.

 

(c)         These adjustments reflect the non-cash compensation expense as measured under APB No. 25 related primarily to restricted stock awarded to the Company’s CEO in fiscal 2003 and restricted stock units awarded to selected members of the Company’s senior management team in fiscal 2004 and 2005. Note that neither the Company’s GAAP nor non-GAAP results of operations in fiscal year 2005 included the accounting impact had the Company chosen to apply the fair-value recognition provisions of SFAS No. 123R.

 

(d)        Amount reflects the expected tax impact on the above noted non-GAAP adjustments.

 



 

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL GUIDANCE SUMMARY

 

(In millions, except per share amounts)

 

The financial guidance provided below is an estimate based on information available as of July 19, 2006. The Company’s future performance and financial results are subject to risks and uncertainties, and actual results could differ materially from the guidance set forth below. Some of the factors that could affect the Company’s financial results are stated above in this press release. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 24, 2005, the Company’s Form 10-Q for the quarters ended December 31, 2005 and April 1, 2006, and the Company’s Form 10-Q for the quarter ended July 1, 2006 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

 

 

 

Q4 2006 Financial Guidance Summary

 

 

 

GAAP

 

Non-GAAP Adjustments

    (a)

Non-GAAP

 

Gross margin percentage

 

28.4

%

0.1

%(b)

28.5

%

 

 

 

 

 

 

 

 

Operating expenses

 

$

785

 

$

34

   (b)

$

751

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

0.46 - $0.48

 

$

0.03

   (c)

$

0.49 - $0.51

 


(a)        These adjustments reconcile the Company’s GAAP to its non-GAAP financial guidance for the fourth quarter of fiscal 2006. The Company believes that excluding non-cash stock-based compensation provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes.  These non-GAAP measures should not be viewed as a substitute for the Company’s GAAP results.

 

(b)        Reflects the expected non-cash compensation expense attributable to stock-based compensation awards including stock options, restricted stock units, and employee stock purchase plan shares. This amount reflects the total estimated expense from the application of SFAS No. 123R, which the Company adopted in the first quarter of fiscal 2006.

 

(c)         This adjustment represents the expected net of tax impact on earnings per share from the non-GAAP adjustments related to stock-based compensation expense.

 

 

Exhibit 99.2

 

Apple Computer, Inc.

Q3 2006 Unaudited Summary Data

 

 

 

Q2 2006 Actual

 

Q3 2005 Actual

 

Q3 2006 Actual

 

Sequential Change

 

Year/Year Change

 

Operating Segments

 

CPU Units K

 

Rev $M

 

CPU Units K

 

Rev $M

 

CPU Units K

 

Rev $M

 

Units

 

Revenue

 

Units

 

Revenue

 

Americas

 

494

 

$

2,122

 

595

 

$

1,739

 

642

 

$

2,188

 

30

%

3

%

8

%

26

%

Europe

 

316

 

966

 

283

 

742

 

301

 

899

 

- 5

%

- 7

%

6

%

21

%

Japan

 

82

 

309

 

76

 

227

 

79

 

258

 

- 4

%

- 17

%

4

%

14

%

Retail

 

154

 

636

 

144

 

555

 

216

 

715

 

40

%

12

%

50

%

29

%

Other Segments (1)

 

66

 

326

 

84

 

257

 

89

 

310

 

35

%

- 5

%

6

%

21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Segments

 

1,112

 

$

4,359

 

1,182

 

$

3,520

 

1,327

 

$

4,370

 

19

%

0

%

12

%

24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sequential Change

 

Year/Year Change

 

 

 

Units K

 

Rev $M

 

Units K

 

Rev $M

 

Units K

 

Rev $M

 

Units

 

Revenue

 

Units

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Desktops (2)

 

614

 

$

833

 

687

 

$

845

 

529

 

$

705

 

- 14

%

- 15

%

- 23

%

- 17

%

Portables (3)

 

498

 

739

 

495

 

720

 

798

 

1,161

 

60

%

57

%

61

%

61

%

Subtotal CPUs

 

1,112

 

1,572

 

1,182

 

1,565

 

1,327

 

1,866

 

19

%

19

%

12

%

19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

iPod

 

8,526

 

1,714

 

6,155

 

1,103

 

8,111

 

1,497

 

- 5

%

- 13

%

32

%

36

%

Other Music Related Products and Services (4)

 

NM

 

485

 

NM

 

241

 

NM

 

457

 

NM

 

- 6

%

NM

 

90

%

Peripherals and Other Hardware

 

NM

 

264

 

NM

 

266

 

NM

 

236

 

NM

 

- 11

%

NM

 

- 11

%

Software, Service and Other Sales

 

NM

 

324

 

NM

 

345

 

NM

 

314

 

NM

 

- 3

%

NM

 

- 9

%

Total Apple

 

 

 

$

4,359

 

 

 

$

3,520

 

 

 

$

4,370

 

 

 

0

%

 

 

24

%


(1)           Other Segments include Asia Pacific and FileMaker .

(2)           Includes iMac, eMac, Mac mini, PowerMac and Xserve product lines.

(3)           Includes MacBook, iBook, MacBook Pro and PowerBook product lines.

(4)           Consists of iTunes Music Store sales, iPod services, and Apple-branded and third-party iPod accessories.

 

NM:  Not Meaningful