Apple: Last quarter’s Mac sales were driven primarily by sales of MacBook Air
Thursday, May 01, 2008 - 09:25 AM ESTApple Inc. today filed the company's Form 10-Q with the U.S. Securities and Exchange Commission, a portion of which details sales of Apple's Macintosh personal computers, which mentions the impact of the company's MacBook Air on recent Mac sales:
The increases in Mac net sales and unit sales were driven primarily by sales of the new MacBook Air, introduced in January 2008, and higher sales of the iMac and other Mac portable systems. - Apple Inc., Form 10-Q , MAy 1, 2008
During Apple's fiscal 2008 second quarter ended March 29, 2008, the company shipped 2,289,000 Macintosh computers, representing 51 percent unit growth and 54 percent revenue growth over the year-ago quarter.
In January 2008, the Company announced MacBook Air, an ultra-slim notebook computer that measures 0.16-inches at its thinnest point and 0.76-inches at its maximum height. The MacBook Air includes a 13.3-inch LED-backlit widescreen display, a full-size and backlit keyboard, a built-in iSight video camera, a trackpad with Multi-Touch gesture support, and AirPort Extreme 802.11n Wi-Fi networking.
Net sales and Mac unit sales by operating segment and net sales and unit sales by product:
(net sales in millions, except per unit amounts, and unit sales in thousands)

(a) During the third quarter of 2007, the Company revised the way it measures the Retail Segment’s operating results to a manner that is generally consistent with the Company’s other operating segments. Prior period results have been reclassified to reflect this change to the Retail Segment’s operating results along with the corresponding offsets to the other operating segments. Further information regarding the Company’s operating segments may be found in Notes to Condensed Consolidated Financial Statements at Note 7, “Segment Information and Geographic Data.”
(b) Other Segments include Asia Pacific and FileMaker.
(c) Includes iMac, Mac mini, Mac Pro, Power Mac, and Xserve product lines.
(d) Includes MacBook, iBook, MacBook Air, MacBook Pro, and PowerBook product lines.
(e) Consists of iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessories.
(f) Derived from handset sales, carrier agreements, and Apple-branded and third-party iPhone accessories.
(g) Includes sales of Apple-branded and third-party displays, wireless connectivity and networking solutions, and other hardware accessories.
(h) Includes sales of Apple-branded operating system, application software, third-party software, AppleCare, and Internet services.
(i) Derived by dividing total Mac net sales by total Mac unit sales.
(j) Derived by dividing total iPod net sales by total iPod unit sales.
NM = Not Meaningful
Net sales during the second quarter of 2008 increased $2.2 billion or 43% from the same period in 2007, and were up 38% or $4.7 billion for the first six months of 2008 compared to the same period in 2007. Several factors contributed to these increases, including the following:
• Macintosh net sales increased $1.2 billion or 54% during the second quarter of 2008 and increased $2.4 billion or 51% during the first six months of 2008 compared to the same periods in 2007. Mac unit sales increased by 772,000 units or 51% during the second quarter of 2008 and increased 1.5 million units or 48% during the first six months of 2008 compared to the same periods in 2007. The increases in Mac net sales and unit sales were driven primarily by sales of the new MacBook Air, introduced in January 2008, and higher sales of the iMac and other Mac portable systems. The Mac unit growth rate of 51% and 48% in the second quarter of 2008 and the first six months of 2008, respectively, exceeded the estimated growth rate of the overall personal computer industry during those timeframes reflecting strong customer demand for the Company’s Mac products. Net sales and unit sales of the Company’s portable systems increased 58% and 61%, respectively, during the second quarter of 2008, and increased 49% each during the first six months of 2008 compared to the same periods in 2007 from higher sales of portable systems in all of the Company’s operating segments. Performance of the Company’s desktop systems was also strong, with increased net sales and unit sales of 48% and 37%, respectively, during the second quarter of 2008, and 53% and 45%, respectively, during the first six months of 2008 compared to the same periods in 2007. Strong growth in net sales and unit sales of desktop systems was due primarily to strong demand for the iMac, which was updated in August 2007. Net sales per Mac unit sold increased by 2% for the second quarter and first six months of 2008, compared to the same periods in 2007 due primarily to a shift in product mix to higher-priced portable systems, particularly the MacBook Pro and MacBook Air.
• Net sales of iPods increased $129 million or 8% during the second quarter of 2008 and increased $699 million or 14% during the first six months of 2008 compared to the same periods in 2007, due primarily to strong sales of the iPod touch, which was introduced in September 2007. iPod unit sales increased 1% to 10.6 million for the second quarter of 2008 and increased 4% to 32.8 million for the first six months of 2008, as compared to the same periods in 2007. Net sales per iPod unit sold increased 7% and 9% during the second quarter and the first six months of 2008, respectively, resulting from a shift in product mix toward higher priced iPods, particularly a shift from the iPod shuffle to the iPod touch.
• Net sales of iPhone and related products and services were $378 million and $619 million in the second quarter and first six months of 2008, respectively, with iPhone handset unit sales totaling 1.7 million and 4.0 million during the second quarter and first six months of 2008, respectively. During 2008 sales of iPhone expanded beyond the U.S. to certain European countries. iPhone net sales include the portion of handset revenue recognized in accordance with subscription accounting over the product’s 24-month estimated economic life, as well as revenue from sales of iPhone accessories and carrier agreements.
• Net sales of other music related products and services increased $228 million or 35% during the second quarter of 2008 and increased $402 million or 31% during the first six months of 2008 compared to the same periods in 2007, due primarily to increased net sales from the iTunes Store. The Company believes this success is the result of heightened consumer interest in downloading third-party digital content, as well as the expansion of third-party audio and video content available for sale and rent via the iTunes Store.
• Net sales of peripherals and other hardware increased $103 million or 33% during the second quarter of 2008 and increased $188 million or 31% during the first six months of 2008 compared to the same periods in 2007, due primarily to an increase in wireless networking products and other hardware accessories, including printers and scanners.
• Net sales of software, service, and other sales rose $184 million or 53% during the second quarter of 2008 and increased $465 million or 67% during the first six months of 2008 compared to the same periods in 2007. This growth was driven largely by strong demand for Mac OS X Leopard, which was released in the first quarter of 2008, increased Internet services and other Apple-branded and third-party software products, and increased net sales of AppleCare Protection Plan (“APP”) extended service and support contracts, which was attributable to higher overall Mac sales.
MacDailyNews Note: Additionally, in the document's regional breakdowns, Apple mentions strong MacBook Air sales in the following regions:
Americas: "Net sales in the Americas segment during the second quarter of 2008 increased $801 million or 32%, compared to the same period in 2007, while Americas Mac unit sales increased 46% year-over-year. The increase in net sales during the second quarter of 2008 was attributable primarily to higher sales of Mac portable and desktop systems, iPhone and sales from the iTunes Store. The increase in net sales of Mac portable systems is attributable primarily to sales of the new MacBook Air, which was introduced in January 2008."
Europe: "Net sales in Europe increased $531 million or 43% during the second quarter of 2008 compared to the same period in 2007, while total Mac unit sales in Europe increased 45% on a year-over-year basis. The increase in net sales was due mainly to strong growth in net sales of all Mac portable and desktop systems, as well as increased sales of iPhone and sales from the iTunes Store. The increase in net sales of desktop and portable systems is attributable primarily to the strong demand for the iMac and the new MacBook Air, which was introduced in January 2008."
Japan: "Japan’s net sales increased $140 million or 49% during the second quarter of 2008 and $255 million or 45% during the first six months of 2008 compared to the same periods in 2007. Additionally, Mac unit sales grew 49% and 40% during the second quarter and first six months of 2008, respectively, compared to the same periods in 2007. These increases were attributed to growth in all of the Mac desktop and portable systems particularly the iMac, MacBook, and the new MacBook Air, which was introduced in January 2008."
Apple Form 10-Q filing in full here.
MacDailyNews Take:
• "That thing’s missing half the things on my PC. Where’s the DVD drive?" - Microsoft CEO Steve Ballmer, commenting on Apple's new MacBook Air, March 6, 2008
• "There are a lot of flaws with the MacBook Air, and it is unlikely to be much of a success." - MarketWatch Gasbag John Dvorak, January 25, 2008
• "The Cube, although a stunning piece of industrial design, was a commercial flop, and I think the MacBook Air will be, too." - CNET executive editor Molly Wood, January 22, 2008
[Attribution: setteB.IT. Read the story in Italian via setteB.IT here. Google Italian to English translation here.]


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