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Sat, Nov 21, 2009 - 11:05 AM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Apple: Last quarter’s Mac sales were driven primarily by sales of MacBook Air
Thursday, May 01, 2008 - 09:25 AM EST

Apple Online StoreApple 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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May 01, 08 - 08:42 am Comment from: zippy

Damn I wish you guys iCal'd all the clowns that said it would be a niche market product or a straight up failure... Take That!

May 01, 08 - 08:43 am Comment from: Notafib

Not bad for a niche product, eh?

May 01, 08 - 08:43 am Comment from: Blue Dream

Let's not forget that iPod sales were great considering that the iPhone is also an iPod and didn't count in that category.

May 01, 08 - 08:44 am Comment from: silverwarloc

shhhaaaaaaaaaaaweeeeeeeeeet!!!!!!!!11

May 01, 08 - 08:45 am Comment from: Daner

Too bad about the glossy screen though, it really seems to be holding back sales...NOT!

May 01, 08 - 08:54 am Comment from: DLMeyer

I see Mac Desktop Net Sales up 48% (3 months) and 53% (6 months) while Unit Sales are up a less impressive 37% and 45%. It may well be true that Laptop Sales outpaced Desktop Sales, and that the MBA contributed significantly to last 3 month's growth (61% vs 49% for 6 months Unit Sales), I would not attribute the growth to MBA sales. Sure, many Desktop Sales - and non-MBA Portable Sales - are due to people coming in to the store to check out the slim beauty, but ... those are not sales. That's the MBA doing its job.

May 01, 08 - 08:56 am Comment from: shen

but, but, but,

it is going to be a bigger flop than the cube! didn't you read the comments!?!?

nooooooooooooooooooooo!


lmao, morons.....

May 01, 08 - 09:02 am Comment from: wyorancher

Man, Ballmer just needs to NOT comment on stuff. His mouth has to hurt from having a shoe in it all the time. As a seer and pundit he is pitiful - he has no idea what the public wants - none. I love watching him make fun of the iPhone - utter failure - most expensive phone, blah, blah - about half the cell phone owners I know are just waiting for their contracts to expire before switching.
Too funny.

May 01, 08 - 09:03 am Comment from: macromancer

So much for all the so-called experts who said the thing was going to be a dud.

You know who you are. Show your faces and admit you were wrong.

May 01, 08 - 09:07 am Comment from: Buster

I bought one for a colleague and while I was setting it up, everyone who saw it had to touch and play with it (the computer). I am a Mac fan and even I was surprised at how people reacted.
Therefore I guess this is a more general reaction given the high sales.

May 01, 08 - 09:07 am Comment from: macrohard

that's why we're not in his position.
many of us, the 'know it all', were wrong about mba. including me ;p
better keep our mouths shut in future ; p

May 01, 08 - 09:08 am Comment from: Rich Apple person

Well since it was just introduced DUH !!! Let's see how it does once the early adapters with the deep pockets have theirs. Watch the sales decline

May 01, 08 - 09:10 am Comment from: DLMeyer

zippy, it IS a "niche market" product. Rather silly to argue that point. The answer to that charge is not "No, it's NOT!" but "Yeah, so ...?". It came in to the niche and jacked it wide open. And, by the way, lots and lots of people have also come to look and then bought a different model. So ... "Yeah, it's a niche product ... and that's 'bad' because ...?". It's a growing niche that Apple had no product to fill before the MBA, now they have jumped in and stolen the growth, stolen previous share, gained a lot of attention outside the niche ... they struck GOLD! Sort of like they did with the iPod, yes?

May 01, 08 - 09:11 am Comment from: Mac+

I'm still skeptical... maybe people bought more Macbook or Macbook Pro.

As long as Apple doesn't break out its sales figures to show the exact number of MBA sold among its portable (just like they do for iPhones and iPods for handeld devices), I'll remain skeptical.

We need details, figures and results reported in full precision!!!

May 01, 08 - 09:13 am Comment from: Lars H

You can always trust the selfproclaimed experts,
they are ALWAYS wrong!!! grin

May 01, 08 - 09:15 am Comment from: Randian

@Rich Apple person

Something tells me that you're not quite as "rich" as you would have us believe. I smell envy, jealousy, and a latent sense of "I'm entitled, so where's mine?" in most of your posts. Perhaps the Apple line of products is not for you, RAP. Psystar perhaps?

May 01, 08 - 09:17 am Comment from: JRA

Never take a trip without seeing at least one Air in an airport or hotel lobby. To me, anecdotally, that is decent market penetration. Was also at a conference in February, they gave away two Macbook Air's, one each afternoon. Conference organizers said they had the best attendance in the trade room ever for prize drawings this year.

May 01, 08 - 09:20 am Comment from: MacSheikh

@ Buster

"I bought one for a colleague..."

Hi Buster! Remember me? I'm your colleague from the department next to yours! Btw, that MacBook Air is really nice, huh? grin

May 01, 08 - 09:21 am Comment from: DLMeyer

<,b>Rich Apple person</b> ... why? This is not like the iPhone, where there was a lot of pent-up demand and an early burst of sales. If you needed an ultra-light you could always go to Sony, or stick with a 12" MacBook (for a while) if you needed a Mac. The 12" MB was dropped in order to build up a bit of demand, sure, but it didn't really do a great job filling that niche. Sorry, I don't see your scenario.
Would you care to bet that MBA sales will grow the next three quarters running? Maybe trailing the rest of the growth in Mac's market share, but growing even so? That niche has lots of room to expand.

May 01, 08 - 09:23 am Comment from: John C. Randolph

"Ballmer just needs to NOT comment on stuff. "

Bad-mouthing Apple's the only way he can get attention. Nobody's going to listen to him when he's talking about his own crap.

-jcr

May 01, 08 - 09:32 am Comment from: Cap

I think the MacBook Air is a fine machine, but I find it very hard to believe that it is "driving" overall Mac sales. Maybe it's driving more traffic into their stores, but I'd be willing to bet the house that the overwhelming majority of those people end up walking out with a MacBook or MBP rather than an Air.

May 01, 08 - 09:34 am Comment from: Ampar

"You know who you are. Show your faces and admit you were wrong."

That's the beauty of insufferable obstinance. Even when he's wrong he's never wrong.

"the early adapters with the deep pockets"

I didn't realize DB-25s had pockets.

May 01, 08 - 09:34 am Comment from: macoverdose_dot_com

just a matter of time before all the commodity PC makers start pulling optical drives and ethernet ports out of their laptops and pushing them as revolutionary..... clowns

May 01, 08 - 09:39 am Comment from: HuskerMac

It really is amazing. Ballmer is always wrong, and that's what so right about him.

May 01, 08 - 09:42 am Comment from: Ampar

" . . . and pushing them as revolutionary..... clowns"


But for now, you can expect many of them to flip-floppy on the subject. Too acer-bic?

May 01, 08 - 09:43 am Comment from: FatMac

@DLM, @MacPlus, I also see no proof that it's the MBA that's driving the increase. It's in Apple's interest to say it is, though.

Still, my mother wants to buy a new laptop and wants one!

May 01, 08 - 09:48 am Comment from: Raymond in DC

Notafib writes, "Not bad for a niche product, eh?" Indeed. BMW is a niche auto manufacturer. Yet it not only inspires the overall market, but is a viable business in its own right. Apple makes "niche" computers, but that niche grows day by day. So what if the MBA is deemed a "niche" product? The world is full of niche products and niche businesses happily making money.

May 01, 08 - 09:51 am Comment from: Fred Mertz

Apple is not lying in their Form 10-Q to the SEC in order to make MacBook Air sales look good.

MacBook Air sales are good. Take that to the bank.

If you think Apple is lying in their 10-Q, then you don't understand what a 10-Q is and you really ought to stop posting and go study for your 3rd grade spelling test.

May 01, 08 - 09:59 am Comment from: Cubert

Wow, lots of suckers out there who value form factor over function. Look at the MacAir benchmarks to see what I mean.

May 01, 08 - 09:59 am Comment from: Splat

Every time I watch Ballmer comment on an Apple product, you can tell he KNOWS he is lying. I feel sorry for the guy, he is puppet that is forced to tow the company line. At first I could laugh at him, but after the MicroHoo, debacle I feel sorry for him. I am sure the MicroHoo deal isn't over but who really cares if Microsoft buys Yahoo?

May 01, 08 - 10:11 am Comment from: Hmmmm

@Rich Apple person, chances are if you got to proclaim that you`re wealthy, YOU`RE NOT...... give it up.

May 01, 08 - 10:12 am Comment from: Cubert

I finally found what I was referring to:

http://www.primatelabs.ca/blog/2007/12/mac-performance-december-2007/

Every Mac released in the last 10 years are compared with each other and ranked.

Enjoy!

May 01, 08 - 10:13 am Comment from: Falkirk

Cubert said: "Wow, lots of suckers out there who value form factor over function. Look at the MacAir benchmarks to see what I mean."

Classic. You missed the point. Again.

It's ALL about function. The Air does not have the specs of other computers. But it functions exactly as it's core buyers require it to function. IT SERVES THEIR NEEDS.

The easiest way to sum it up is to say that Engineering is not about what's included in a product. Great Engineering is about what you leave off.

May 01, 08 - 10:14 am Comment from: Splat

@Cubert

I think it is about portability more than function. I suspect most MBA owners have a home system and use the MBA when they travel. If you travel I bet the MBA is WONDERFUL. I DREAD dragging my Dell brick with me on trips. I can not remember once in all my years of flying ever using the optical drive either.

May 01, 08 - 10:17 am Comment from: Cubert

"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

Molly, We've (me and my Cube) got our sights on you!

May 01, 08 - 10:19 am Comment from: Jubei

I think Cuberts Zune must have broke. He seems more upset that usual. Or perhaps he told everyone of his cohorts that the MBA would be a failure and it backfired. He's not shi errr Zune Faced. Yeah thats more like it. Zune = Poop, that works. "Zuned Faced" wink

May 01, 08 - 10:23 am Comment from: Cubert

@silverwarloc,
Right hand slipped off that shift key and under the table at the end of typing that.

@Buster,
"everyone who saw it had to touch and play with it (the computer)."

Thanks for the clarification!


tongue wink

May 01, 08 - 10:23 am Comment from: ChrissyOne

No way. Too limited! Too expensive! No food processor!

NO ONE IS GOING TO BUY ONE!!!

NO CHANCE!!!

May 01, 08 - 10:26 am Comment from: Cubert

@Falkirk, Splat, and Jubei,
As a proud owner of a Cube, I completely understand the sacrifice of function for form (although the Cube performs admirably when compared to the hardware of the day). My own posts from when the Air was released said as much - it is for design lovers. However, look at the benchmarks I posted. I was shocked to see how poorly the Air performs compared to Macbooks from a year or two ago.

May 01, 08 - 10:31 am Comment from: Cubert

P.S.
A Zune?!?!?! Puleeeeeze! I don't need to defend my Apple Fanboy cred here.


grin

May 01, 08 - 10:34 am Comment from: Ampar

"@Rich Apple person, chances are if you got to proclaim that you`re wealthy, YOU`RE NOT...... give it up."

Maybe Rich Apple person is a different kind of rich:

• informal (of a remark) causing ironic amusement or indignation : these comments are a bit rich coming from a woman with no money worries.

Or, more probably:

• (of food) containing a large amount of fat, spices, sugar, etc. : dishes with wonderfully rich sauces.

May 01, 08 - 10:37 am Comment from: @Cubert

When I am traveling I just don't need that much performance, I am not even sure I would notice it to tell you the truth. When I am at my desk, you bet I want as much as I can get but on the road I am not doing anything that requires much. After a 14 hour flight, a few delays, and standing in endless lines at customs the MBA would be welcome over something that might get my email a nano second faster.

I never had a Cube, but I have had about everything else including several Newtons.

May 01, 08 - 10:37 am Comment from: Splat

Whoops Sorry @Cubert....didn't mean to do that....ack!

May 01, 08 - 10:39 am Comment from: HMCIV

I didn't expect it to be as heavy a hitter as it is. Good for Apple!

May 01, 08 - 10:46 am Comment from: Cubert

@@Cubert,
Cube users, 12 inch Powerbook users, and Newton users are all a rare breed. Any other Apple products out there that have such a fanatical following? Off the top of my head I can't think of any.

May 01, 08 - 10:47 am Comment from: Roberto

"That thing’s missing half the things on my PC. Where’s the floppy, errr, DVD drive?"
- Cretinous Microsoft CEO Steve Ballmer

May 01, 08 - 10:50 am Comment from: Buster

@MacSheikh...yeah yeah I remember you now....hey do yo want my colleagues old Compaq Brick? She doesn't need it anymore now that she has the MBA.

@Cubert...design does makes it attractive but from the people I know, weight is everything. They sometimes won't take their computer with them because they lug baggage around and cannot handle the extra weight of a computer on their shoulder....which explains why the iPhone is so popular.

Therefore the speed consideration is irrelevant to their travelling/computing needs. The size/weight is THE big selling factor and the design is a bonus. Oh....and an extreme dislike of PC laptops also helps I think.

May 01, 08 - 10:59 am Comment from: Splat

@Cubert....

sorry about stealing your name...my bad. The Newton became the iPhone.

May 01, 08 - 11:01 am Comment from: Ampar

"Cube users, 12 inch Powerbook users, and Newton users are all a rare breed."

They're Castlemilk Moorit?

May 01, 08 - 11:13 am Comment from: almux

wink Didn't someone say "Air is going to be a flop!" ?

May 01, 08 - 11:23 am Comment from: Jubei

@Cubert

Sorry about the Zune reference. That should only be used as a last resort for ammo. LOL

Now talk about form and function, I have a TAM. In perfect condition, no scratches, no imperfections whatsoever. If only I can run OS X on it. I have it all boxed up in its original container and with all its extra goodies.

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