apple operating and financial metrics review – july 2014

Jan Dawson Chief Analyst

(408) 744-6244 [email protected]

@jandawson

Apple profile Appendix – numbers

mailto:[email protected]

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


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


iPod era iPhone era


Profitability


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


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



Inventory adjustment in Q4 2000 led to unusual losses

iPod launch

iPhone launch

iPad launch


Cost components


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


Revenues by segment


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


Revenues by segment


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


Revenue growth by segment


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


Near-term financials

High-level overview


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


Margins


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%



Cost components


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


Revenue by segment


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


Revenue by segment


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


Revenue by segment


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


Revenue growth by segment


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


Regional splits

Revenue split by region


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


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


3. Regional splits



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%


3. Regional splits



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%


3. Regional splits



-20%

-10%

0%

10%

20%

30%

Q3 2013 Q4 2013 Q1 2014


3. Regional splits

Retail data

Retail vs revenue split


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


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


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


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


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


Spain

Netherlands

Sweden

Brazil, Turkey

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

4. Retail data

Revenue per store


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


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


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


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


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


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


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


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


5. Shipment data

Unit shipments – 4-year view


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


5. Shipment data

Unit shipments – 4-year view


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


5. Shipment data

Growth rates


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


5. Shipment data

Average selling prices


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


5. Shipment data

Average selling prices


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


5. Shipment data

iTunes data

iTunes revenues and billings


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


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


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


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


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


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


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


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 [email protected]

@jandawson

mailto:[email protected]

apple operating and financial metrics review – july 2014

Technology

apple financial reporting

jackdaw research analysis

series of financial

longterm financialsyear

longterm financials2

written apple profile

quarter revenues

operating data