apple operating and financial metrics review – july 2014

Jan Dawson Chief Analyst

(408) 744-6244 jan@jackdawresearch.com

@jandawson

Apple profile Appendix – numbers

Introduction• This appendix is intended to complement the

written Apple profile, with a series of financial and operating data on Apple

• The data presented is largely based on reported information from Apple, but in some cases data is estimated by Jackdaw Research

• In those cases where data is estimated, it will be noted in the title of each chart

Table of contents1. Long-term financials

2. Near-term financials

3. Regional splits

4. Retail data

5. Shipment data

6. iTunes data

1. Long-term financials

Revenues

Source: Apple financial reporting, Jackdaw Research analysis

Fiscal year revenues, $m

0

45,000

90,000

135,000

180,000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

1. Long-term financials

Year-on-year growth in trailing 4-quarter revenue

-60%

-30%

0%

30%

60%

90%

Q4 1999 Q2 2001 Q4 2002 Q2 2004 Q4 2005 Q2 2007 Q4 2008 Q2 2010 Q4 2011 Q2 2013

Revenue growth

Source: Apple financial reporting, Jackdaw Research analysis

iPod era iPhone era

1. Long-term financials

Profitability

Source: Apple financial reporting, Jackdaw Research analysis

Fiscal year margins

-25%

-13%

0%

13%

25%

38%

50%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Gross margin Operating margin Net margin

1. Long-term financials

ProfitabilityTrailing 4-quarter margins

-10%

0%

10%

20%

30%

40%

50%

Q4 1998 Q2 2000 Q4 2001 Q2 2003 Q4 2004 Q2 2006 Q4 2007 Q2 2009 Q4 2010 Q2 2012 Q4 2013

Gross margin Operating margin Net margin

Source: Apple financial reporting, Jackdaw Research analysis

Inventory adjustment in Q4 2000 led to unusual losses

iPod launch

iPhone launch

iPad launch

1. Long-term financials

Cost components

Source: Apple financial reporting, Jackdaw Research analysis

0%

20%

40%

60%

80%

Q4 2001 Q1 2003 Q2 2004 Q3 2005 Q4 2006 Q1 2008 Q2 2009 Q3 2010 Q4 2011 Q1 2013

Cost of sales as % of revenues R&D as % of revenuesSG&A as % of revenues Operating costs as % of revenues

iPad eraiPhone era

1. Long-term financials

Revenues by segment

Source: Apple financial reporting, Jackdaw Research analysis

Revenues by segment, $m

0

20,000

40,000

60,000

80,000

100,000

Q3 2001 Q4 2002 Q1 2004 Q2 2005 Q3 2006 Q4 2007 Q1 2009 Q2 2010 Q3 2011 Q4 2012 Q1 2014

Mac iPod iPhoneiPad iTunes, Software & Services Peripherals / Accessories

1. Long-term financials

Revenues by segment

Source: Apple financial reporting, Jackdaw Research analysis

Revenues as % of total revenues

0%

15%

30%

45%

60%

75%

90%

Q3 2001 Q4 2002 Q1 2004 Q2 2005 Q3 2006 Q4 2007 Q1 2009 Q2 2010 Q3 2011 Q4 2012 Q1 2014

Mac iPodiPhone iPadiTunes, Software & Services Peripherals / Accessories

1. Long-term financials

Revenue growth by segment

Source: Apple financial reporting, Jackdaw Research analysis

Year on year growth in trailing 4-quarter revenues, by segment

-150%

0%

150%

300%

450%

600%

Q3 2002 Q4 2003 Q1 2005 Q2 2006 Q3 2007 Q4 2008 Q1 2010 Q2 2011 Q3 2012 Q4 2013

MaciPodiPhoneiPadiTunes, Software & ServicesPeripherals and Accessories

1. Long-term financials

Near-term financials

High-level overview

Source: Apple financial reporting, Jackdaw Research analysis

0

30,000

60,000

90,000

120,000

150,000

180,000

Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

Revenues Gross profit Operating income Net income

2. Near-term financials

Margins

Source: Apple financial reporting, Jackdaw Research analysis

0%

10%

20%

30%

40%

50%

Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

20% 21% 21% 22% 22% 24% 24%26%

27% 27% 27%25%

23% 22% 22% 21% 21%

27% 28% 28% 28% 29%30% 31%

34%36% 36% 35%

33%31%

29% 29% 28% 29%

39% 40% 39% 39% 39% 40% 40%42%

44% 44% 44%42%

40% 38% 38% 37% 38%

Gross margin Operating margin Net margin

2. Near-term financials

Cost components

Source: Apple financial reporting, Jackdaw Research analysis

Trailing 4-quarter ratios

0%

5%

10%

15%

Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

12.9%12.2%

11.2%10.6%

10.0%9.4% 9.3%

8.5% 8.3% 8.5% 8.6% 8.4% 8.6% 8.8% 9.0% 9.1% 9.3%9.7%

9.1%8.5%

8.0%7.6%

7.1% 7.0%6.5% 6.2% 6.4% 6.4% 6.2% 6.3% 6.3% 6.3% 6.3% 6.4%

3.2% 3.0% 2.7% 2.6% 2.4% 2.3% 2.2% 2.0% 2.0% 2.1% 2.2% 2.2% 2.3% 2.5% 2.6% 2.8% 2.9%

R&D as % of revenues SG&A as % of revenuesOperating costs as % of revenues

2. Near-term financials

Revenue by segment

Source: Apple financial reporting, Jackdaw Research analysis

0

45,000

90,000

135,000

180,000

Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013

Mac iPod iPhone iPad iTunes, Software & ServicesAccessories

2. Near-term financials

Revenue by segment

Source: Apple financial reporting, Jackdaw Research analysis

Revenue split by segment, trailing 4 quarters

0%

25%

50%

75%

100%

Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013

iPhone iPad Mac iPodAccessories iTunes - Apps iTunes - Content Software & Services

2. Near-term financials

Revenue by segment

Source: Apple financial reporting, Jackdaw Research analysis

Revenue split by major category

75%

80%

85%

90%

95%

100%

Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

3.3%3.3%3.3%3.3%3.4%3.3%3.3%3.4%3.5%3.8%4.1%

4.2%4.1%4.0%3.8%3.7%3.5%3.5%3.4%3.2%3.3%3.6%

5.6%5.5%5.4%5.3%4.9%4.7%4.7%4.6%4.6%4.7%5.0%

86.9%87.1%87.3%87.6%88.1%88.4%88.5%88.6%88.7%88.2%87.2%

Hardware products Apps & ContentSoftware & Services Accessories

2. Near-term financials

Revenue growth by segment

Source: Apple financial reporting, Jackdaw Research analysis

Year on year growth in trailing 4-quarter revenues

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Overall Mac iPod iPhoneiPad iTunes Peripherals / accessories Software, Services & other

2. Near-term financials

Regional splits

Revenue split by region

Source: Apple financial reporting, Jackdaw Research analysis

Trailing 4 quarter revenue split by region (Retail is not included in regions)

0%

25%

50%

75%

100%

Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

11.8%11.9%11.8%11.8%11.8%11.6%12.0%

5.8%6.2%6.5%6.7%7.0%6.8%6.9%8.4%8.0%7.9%7.4%7.1%7.0%6.8%

16.2%15.8%14.9%14.8%15.3%15.4%14.4%

22.1%22.1%22.2%22.4%22.8%22.8%23.2%

35.6%35.9%36.7%37.0%36.1%36.5%36.7%

Americas Europe Greater China Japan Rest of AP Retail

3. Regional splits

Regional margins

Source: Apple financial reporting, Jackdaw Research analysis

Operating margins by region (trailing 4 quarters)

0%

15%

30%

45%

60%

Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Americas Europe Greater China Japan Rest of AP Retail

3. Regional splits

Revenue split by region

Source: Apple financial reporting, Jackdaw Research analysis

Operating margin split by region

0%

25%

50%

75%

100%

Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

6.9%7.0%6.8%6.9%7.0%6.8%7.3%5.9%6.2%6.4%6.4%6.5%6.3%6.8%

11.8%11.6%11.6%10.8%10.0%9.7%9.3%

16.0%15.2%14.5%14.6%15.8%16.9%15.7%

21.9%22.0%22.1%22.5%23.1%23.1%23.7%

37.4%37.9%38.7%38.7%37.6%37.2%37.3%

Americas Europe Greater China Japan Rest of AP Retail

3. Regional splits

Revenue split by region

Source: Apple financial reporting, Jackdaw Research analysis

Revenue and operating income split by regional segment, year to March ‘14

0%

25%

50%

75%

100%

Revenue Operating income

6.9%11.8%5.9%

5.8% 11.8%8.4%

16.0%16.2%

21.9%22.1%

37.4%35.6%

Americas Europe Greater China Japan Rest of AP Retail

3. Regional splits

Revenue split by region

Source: Apple financial reporting, Jackdaw Research analysis

-20%

-10%

0%

10%

20%

30%

Q3 2013 Q4 2013 Q1 2014

Americas Europe Greater China Japan Rest of AP Retail

3. Regional splits

Retail data

Retail vs revenue split

Source: Apple financial reporting, Jackdaw Research analysis

Split of Apple retail stores and total revenue by reported region

0%

10%

20%

30%

40%

50%

60%

70%

Americas Europe Rest of AP Greater China Japan

10%

18%

7%

25%

40%

2%3%5%

23%

67% Stores Revenue*

*Regional revenue split excludes Retail segment, which is not split by region.

Store count as of May 2014

4. Retail data

Stores open

Source: Apple financial reporting, Jackdaw Research analysis

Number of Apple retail stores open at end of quarter

0

100

200

300

400

500

Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

US stores International stores

4. Retail data

Stores open

Source: Apple financial reporting, Jackdaw Research analysis

0%

20%

40%

60%

80%

Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

US as % of stores Intl as % of stores

4. Retail data

New stores opened

Source: Apple financial reporting, Jackdaw Research analysis

0

10

20

30

40

Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

1816

22

333535

28

32292828

232225

28

3343455

131110

1211

151516

New US stores New intl stores

4. Retail data

New stores opened

Source: Apple financial reporting, Jackdaw Research analysis

New stores opened by region

0%

25%

50%

75%

100%

Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013

US as % of new stores Intl as % of new stores

4. Retail data

0

4

8

12

16

Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

No of countries with Apple retail stores

New stores opened

Source: Apple financial reporting, Jackdaw Research analysis

Spain

Netherlands

Sweden

Brazil, Turkey

US UK Canada Australia France Italy Germany China Japan Switzerland Hong Kong

4. Retail data

Revenue per store

Source: Apple financial reporting, Jackdaw Research analysis

0

20

40

60

Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013

Annual retail revenue per store – trailing four quarters ($m)

4. Retail data

Visitor numbers

Source: Apple financial reporting, Jackdaw Research analysis

0

100

200

300

400

Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013

4-quarter visitors to stores

4. Retail data

Revenue per visitor

Source: Apple financial reporting, Jackdaw Research analysis

4-quarter retail revenue per visitor, $

0

15

30

45

60

Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013

53.651.251.251.450.050.651.150.849.347.447.846.845.3

42.139.6

4. Retail data

Store employees

Source: Apple financial reporting, Jackdaw Research analysis

0%

15%

30%

45%

60%

0

10,000

20,000

30,000

40,000

50,000

Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

Headcount (left axis) Retail as % of overall employees (right axis)

4. Retail data

Revenue per employee

Source: Apple financial reporting, Jackdaw Research analysis

4. Retail data

0

100

200

300

400

500

Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

487487471466469

450450452468473

447482485481

451

4-q revenue per employee, $ thousands

Employees per store

Source: Apple financial reporting, Jackdaw Research analysis

0

20

40

60

80

100

120

Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

Employees per store

4. Retail data

Shipment data

Unit shipments – long view

Source: Apple financial reporting, Jackdaw Research analysis

Unit shipments, quarterly, 000s, Q1 2000 to Q1 2014

0

15,000

30,000

45,000

60,000

Q1 2000 Q3 2001 Q1 2003 Q3 2004 Q1 2006 Q3 2007 Q1 2009 Q3 2010 Q1 2012 Q3 2013

Mac iPod iPhone iPad

5. Shipment data

Unit shipments – long view

Source: Apple financial reporting, Jackdaw Research analysis

Trailing 4-quarter shipments, 000s, Q4 2000 to Q1 2014

0

40,000

80,000

120,000

160,000

Q4 2000 Q2 2002 Q4 2003 Q2 2005 Q4 2006 Q2 2008 Q4 2009 Q2 2011 Q4 2012

Mac iPod iPhone iPad

5. Shipment data

Unit shipments – 4-year view

Source: Apple financial reporting, Jackdaw Research analysis

Quarterly unit shipments, 000s, Q1 2010 to Q1 2014

0

15,000

30,000

45,000

60,000

Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

Mac iPod iPhone iPad

5. Shipment data

Unit shipments – 4-year view

Source: Apple financial reporting, Jackdaw Research analysis

Trailing 4-quarter shipments, 000s, Q1 2010 to Q1 2014

0

40,000

80,000

120,000

160,000

Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

Mac iPod iPhone iPad

5. Shipment data

Growth rates

Source: Apple financial reporting, Jackdaw Research analysis

Year-on-year growth in quarterly shipments

-100%

-50%

0%

50%

100%

150%

200%

Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

Mac iPod iPhone iPad

5. Shipment data

Average selling prices

Source: Apple financial reporting, Jackdaw Research analysis

Revenue per shipment (average selling price), $, quarterly

0

500

1,000

1,500

Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013

596 561606 590 568 531 515 508

467 449 436 439 440 465

631 646 644 621 647 635 608 619 642 613 581 577637

596

176 177 176 167 164 157 157 153 168 171 160 164 161 167

1,313 1,323 1,293 1,282 1,269 1,263 1,227

1,344 1,359 1,3781,303

1,2301,322 1,334

Mac iPod iPhone iPad

5. Shipment data

Average selling prices

Source: Apple financial reporting, Jackdaw Research analysis

Revenue per shipment, trailing 4 quarters, $

0

375

750

1,125

1,500

Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

592 582 571 548 531 500 481 464 450 442 445

636 641 638 630 629 629 623 617 607 607 602

175 170 166 162 160 161 163 165 167 164 162

1,302 1,289 1,276 1,262 1,279 1,301 1,328 1,347 1,315 1,306 1,297

Mac iPod iPhone iPad

5. Shipment data

iTunes data

iTunes revenues and billings

Source: Apple financial reporting, Jackdaw Research analysis

Net sales and gross billings for iTunes, as reported, $m

0

1,500

3,000

4,500

6,000

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

5,200

4,7004,4004,300

4,000

2,6002,4002,4002,4002,400

iTunes net sales iTunes billings

6. iTunes data

iTunes revenue by category

Source: Apple financial reporting, Jackdaw Research analysis

Trailing 4-quarter iTunes revenue by category, net, $m (estimated)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014

Content revenues App revenues

6. iTunes data

iTunes accounts

Source: Apple financial reporting, Jackdaw Research analysis

Number of iTunes accounts, 000s, reported and estimated

0

200,000

400,000

600,000

800,000

Q3 2008 Q2 2009 Q1 2010 Q4 2010 Q3 2011 Q2 2012 Q1 2013 Q4 2013

6. iTunes data

iTunes revenue by category

Source: Apple financial reporting, Jackdaw Research analysis

Revenue per iTunes account ($ per year), estimated

0

5

10

15

20

25

Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Content Apps Total iTunes

6. iTunes data

Apps in app stores

Source: Apple financial reporting, Jackdaw Research analysis

Apps in Apple App Store, 000s, as reported, with interpolation

0

300

600

900

1,200

Q2 2008 Q1 2009 Q4 2009 Q3 2010 Q2 2011 Q1 2012 Q4 2012 Q3 2013

iOS total iPad optimized

6. iTunes data

Apps downloaded

Source: Apple financial reporting, Jackdaw Research analysis

Apps downloaded, m, as reported, with interpolation

0

10

20

30

40

50

60

70

Q2 2008 Q1 2009 Q4 2009 Q3 2010 Q2 2011 Q1 2012 Q4 2012 Q3 2013

6. iTunes data

Developer payments

Source: Apple financial reporting, Jackdaw Research analysis

Cumulative payments to app developers, $m, reported and estimated

0

6,000

12,000

18,000

Q3 2008 Q2 2009 Q1 2010 Q4 2010 Q3 2011 Q2 2012 Q1 2013 Q4 2013

6. iTunes data

Revenue per app

Source: Apple financial reporting, Jackdaw Research analysis

Gross app revenue per app download, $, calculated based on estimates

0.00

0.25

0.50

0.75

1.00

Q3 2008 Q2 2009 Q1 2010 Q4 2010 Q3 2011 Q2 2012 Q1 2013 Q4 2013

Revenue per app ($), quarterly basis Revenue per app ($), cumulative basis

6. iTunes data

Jan Dawson Chief Analyst

(408) 744-6244 jan@jackdawresearch.com

@jandawson