cik stringclasses 1
value | date stringlengths 8 8 | form stringclasses 4
values | sentenceCount int64 0 2.33k | sentence stringlengths 2 5.25k | filename stringlengths 40 40 |
|---|---|---|---|---|---|
0000320193 | 20080723 | 10-Q | 351 | Performance of the Company’s desktop systems was also strong, with increased net sales and unit sales of 44% and 49%, respectively, during the third quarter of 2008, and 50% and 46%, respectively, during the first nine months of 2008 compared to the same periods in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 352 | Strong growth in net sales and unit sales of desktop systems was due to the popularity of iMac, which was updated in April 2008. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 353 | •
Net sales of iPods increased $108 million or 7% during the third quarter of 2008 and increased $807 million or 12% during the first nine months of 2008 compared to the same periods in 2007, due primarily to strong demand for iPod touch, which was introduced in September 2007. iPod unit sales increased 12% to 11.0 mil... | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 354 | Net sales per iPod unit sold decreased 5% during the third quarter, resulting primarily from increased volume for iPod shuffle as a result of the price reduction in February 2008. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 355 | Conversely, during the first nine months of 2008, net sales per iPod unit sold increased by 6% resulting from strong demand for the higher priced iPod touch. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 356 | •
Net sales of iPhone and related products and services were $419 million and $1 billion in the third quarter and first nine months of 2008, respectively, with iPhone handset unit sales totaling 717,000 and 4.7 million during the third quarter and first nine months of 2008, respectively. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 357 | During 2008, sales of iPhone expanded beyond the U.S. to certain European countries, and with the July 11, 2008 launch of iPhone 3G, the Company expanded iPhone sales to 22 countries and expects to be shipping in over 70 countries by December 2008. iPhone net sales include the portion of handset revenue recognized in a... | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 358 | •
Net sales of other music related products and services increased $211 million or 35% during the third quarter of 2008 and increased $613 million or 32% during the first nine months of 2008 compared to the same periods in 2007, due primarily to increased net sales from the iTunes Store. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 359 | The increase in sales from the iTunes Store stemmed particularly from significant growth in both the U.S. and Europe. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 360 | 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. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 361 | The Company continues to expand its available iTunes content offerings around the world. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 362 | •
Net sales of peripherals and other hardware increased $129 million or 42% during the third quarter of 2008 and increased $317 million or 35% during the first nine months of 2008 compared to the same periods in 2007, due primarily to an increase in net sales of wireless networking products and other hardware accessori... | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 363 | •
Net sales of software, service, and other sales rose $115 million or 30% during the third quarter of 2008 and increased $580 million or 54% during the first nine months of 2008 compared to the same periods in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 364 | This growth was driven largely by strong demand for Mac OS X Leopard, which was released in the first quarter of 2008, other Apple-branded and third-party software products, and increased net sales of Internet services and AppleCare Protection Plan (“APP”) extended service and support contracts. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 365 | Segment Operating Performance
The Company manages its business primarily on a geographic basis. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 366 | The Company’s reportable operating segments consist of the Americas, Europe, Japan, and Retail. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 367 | The Americas, Europe, and Japan reportable segments do not include activities related to the Retail segment. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 368 | The Americas segment includes both North and South America. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 369 | The Europe segment includes European countries as well as the Middle East and Africa. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 370 | The Retail segment operates Apple-owned retail stores in the U.S., Canada, Japan, the U.K., Italy, and Australia. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 371 | Each reportable segment provides similar hardware and software products and similar services to the same types of customers. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 372 | Americas
Net sales in the Americas segment during the third quarter of 2008 increased $755 million or 28%, compared to the same period in 2007, while Americas Mac unit sales increased 38% year-over-year. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 373 | The increase in net sales during the third quarter of 2008 was attributable primarily to higher sales of Mac portable systems, iMac, sales from the iTunes Store, and iPhone. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 374 | Sales of Mac portable products increased largely due to strong demand for MacBook. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 375 | Net sales and unit sales of iPods increased during the third quarter of 2008 as compared to the third quarter of 2007 as a result of strong demand for iPod touch, which was introduced at the high end of the iPod product line in September 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 376 | During the third quarters of 2008 and 2007, the Americas segment represented 46% and 50%, respectively, of the Company’s total net sales. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 377 | During the first nine months of 2008, net sales in the Americas segment increased $2.3 billion or 27% compared to the same period in 2007, while Americas Mac unit sales increased 39%. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 378 | The main sources of this growth were the significant year-over-year increase in sales of Mac portable systems, iMac, content from the iTunes Store, and iPhone. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 379 | The Company believes that the growth in iTunes Store sales was the result of heightened consumer interest in downloading third-party digital content and the expansion of third-party audio and video content available for sale and rent via the iTunes Store. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 380 | During the first nine months of 2008, net sales of iPods increased due to a higher average selling price compared to the same period in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 381 | The higher average selling price was due to strong demand for the higher priced iPod touch. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 382 | The Americas segment represented approximately 45% and 49% of the Company’s total net sales for the first nine months of 2008 and 2007, respectively. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 383 | Europe
Net sales in Europe increased $488 million or 42% during the third quarter of 2008 compared to the same period in 2007, while total Mac unit sales in Europe increased 47% on a year-over-year basis. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 384 | Consistent with the Americas segment, the primary drivers of this growth were Mac portable systems, as well as increased sales of iMac, sales from the iTunes Store, and iPhone. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 385 | The increase in net sales of portable systems is attributable primarily to the strong demand for MacBook Pro and MacBook Air, which was introduced in January 2008. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 386 | A weaker U.S. dollar also contributed to the increase in overall net sales. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 387 | For the first nine months of 2008, net sales and unit sales in Europe increased 43% and 45%, respectively, compared to the same period in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 388 | The main sources of this growth were strong growth in net sales of Mac portable systems and iMac, and increased sales from the iTunes Store. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 389 | Also contributing to the growth in net sales were higher iPod net sales due primarily to the introduction of the iPod touch in September 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 390 | Japan
Japan’s net sales increased $107 million or 41% during the third quarter of 2008 and $362 million or 44% during the first nine months of 2008 compared to the same periods in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 391 | Additionally, Mac unit sales grew 26% and 35% during the third quarter and first nine months of 2008, respectively, compared to the same periods in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 392 | The primary contributors to the net sales growth were increases in sales of iPods, iMac, Mac portable systems, and strong sales from the iTunes Store. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 393 | Net sales and unit sales of iPods increased during the third quarter and first nine months of 2008 compared to the same periods in 2007, driven by strong demand for iPod touch and iPod nano. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 394 | In addition, the weaker U.S. dollar contributed to the increase in overall net sales. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 395 | Retail
Retail net sales grew by 58% during the third quarter of 2008 compared to the same period in 2007 due primarily to strong growth in sales of Mac products, strong sales of iPhone and new store openings. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 396 | Mac unit sales increased by 44% due to greater demand for iMac and MacBook and sales of MacBook Air. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 397 | The Company opened 8 new retail stores during the third quarter of 2008, ending the quarter with 216 stores open compared to 185 stores at the end of the third quarter of 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 398 | With an average of 211 stores and 180 stores open during the third quarters of 2008 and 2007, respectively, average revenue per store increased to $6.8 million for the third quarter of 2008, compared to $5.1 million in the third quarter of 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 399 | Retail net sales and Mac unit sales grew by 61% and 58%, respectively, during the first nine months of 2008 compared to the same period in 2007, due primarily to strong demand for Mac portables, iMac, iPhone and iPod touch. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 400 | Average revenue per store increased by $5.9 million to $22.4 million for the first nine months of 2008 based on an average of 205 stores, up from $16.5 million in the first nine months of 2007 based on an average of 174 stores. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 401 | The Retail segment had operating income of $297 million during the third quarter of 2008 compared to operating income of $184 million during the third quarter of 2007, and had operating income of $1.0 billion during the first nine months of 2008 compared to $607 million during the first nine months of 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 402 | The increased operating profit in the third quarter of 2008 compared to the same period in 2007 is attributable to higher sales, specifically higher average revenue per store, and increased operating expense leverage. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 403 | For the first nine months of 2008 compared to the same period in 2007, Retail profitability increased due primarily to higher sales, an increase in gross margin percentage due to favorable standard costs experienced by the Company overall, and operating expense leverage. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 404 | Expansion of the Retail segment has required and will continue to require a substantial investment in fixed assets and related infrastructure, operating lease commitments, personnel, and other operating expenses. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 405 | Capital asset purchases associated with the Retail segment since its inception totaled $1.3 billion through the end of the third quarter of 2008. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 406 | As of June 28, 2008, the Retail segment had approximately 13,600 full-time equivalent employees and had outstanding lease commitments associated with retail space of $1.3 billion. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 407 | The Company would incur substantial costs if it were to close multiple retail stores. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 408 | Such costs could adversely affect the Company’s financial condition and operating results. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 409 | Other Segments
The Company’s Other Segments, which consist of its Asia Pacific and FileMaker operations, experienced an increase in net sales of $174 million, or 44% during the third quarter of 2008 as compared to the same period in 2007, and increased 45% or $589 million to $1.9 billion during the first nine months of... | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 410 | Mac unit sales increased 53% and 58% during the third quarter and first nine months of 2008, respectively, as compared to the same periods in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 411 | These increases are related primarily to strong growth in sales of all Mac portable systems, iMac, and iPod touch in the Company’s Asia Pacific region. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 412 | Gross Margin
Gross margin for the three and nine-month periods ended June 28, 2008 and June 30, 2007 was as follows (in millions, except gross margin percentages):
Gross margin percentage for the third quarter of 2008 was 34.8% compared to 36.9% for the third quarter of 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 413 | The gross margin percentage for the third quarter of 2008 was down 2.1 percentage points from the third quarter of 2007 primarily as a result of pricing actions, more richly configured products, and higher manufacturing and support costs. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 414 | The Company expects its gross margin percentage to continue to decrease in future periods compared to levels achieved during 2007 and the first three quarters of 2008, and anticipates gross margin levels of about 31.5% in the fourth quarter of 2008 and about 30% in 2009. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 415 | This expected decline is due largely to the anticipated impact of product transitions, flat or reduced pricing on new and innovative products that have higher costs, both expected and potential future cost increases for key components, and higher logistics costs. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 416 | The foregoing statements regarding the Company’s expected gross margin percentage are forward-looking and could differ from anticipated levels because of several factors, including certain of those set forth below in Part II, Item 1A, “Risk Factors” under the subheading “Future operating results depend upon the Company... | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 417 | There can be no assurance that targeted gross margin percentage levels will be achieved. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 418 | In general, gross margins and margins on individual products will remain under downward pressure due to a variety of factors, including continued industry wide global product pricing pressures, increased competition, compressed product life cycles, product transitions and expected increases in the cost of key component... | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 419 | In response to these competitive pressures, the Company expects it will continue to take product pricing actions, which would adversely affect gross margins. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 420 | Gross margins could also be affected by the Company’s ability to effectively manage product quality and warranty costs and to stimulate demand for certain of its products. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 421 | Due to the Company’s significant international operations, financial results can be significantly affected in the short-term by fluctuations in exchange rates. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 422 | Operating Expenses
Operating expenses for the three and nine-month periods ended June 28, 2008 and June 30, 2007 were as follows (in millions, except for percentages):
Research and Development (“R&D”)
Expenditures for R&D increased 40% or $84 million to $292 million in the third quarter of 2008 compared to the same per... | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 423 | These increases were due primarily to an increase in R&D headcount in the current year to support expanded R&D activities and higher stock-based compensation expenses. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 424 | In addition, R&D expense for the three and nine months ended June 30, 2007 excluded $26 million and $53 million, respectively, of capitalized software development costs related to Mac OS X Leopard and iPhone. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 425 | No software development costs were capitalized in 2008. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 426 | Although total R&D expense increased 40% and 41%, respectively, during the third quarter and first nine months of 2008 compared to the same periods in 2007, it remained flat as a percentage of net sales given the 38% increases in revenue in both the third quarter and first nine months of 2008 compared to the same perio... | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 427 | The Company continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the Company’s core business strategy. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 428 | As such, the Company expects to continue to invest in R&D to remain competitive. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 429 | Selling, General, and Administrative (“SG&A”)
SG&A expenditures increased $170 million or 23% and $622 million or 29%, respectively, for the third quarter and the first nine months of 2008 compared to the same periods in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 430 | These increases are due primarily to higher stock-based compensation expenses, higher variable selling expenses resulting from the significant year-over-year increase in total net sales and the Company’s continued expansion of its Retail segment in both domestic and international markets. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 431 | In addition, the Company incurred higher spending on marketing and advertising during the first nine months of 2008 compared to the same period in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 432 | Other Income and Expense
Total other income and expense decreased $37 million or 24% to $118 million during the third quarter of 2008 compared to the same period in 2007, but increased $51 million or 12% during the first nine months of 2008 compared to the same period in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 433 | These fluctuations were attributable to lower interest income as a result of declining market interest rates, which were partially offset by higher cash and short-term investment balances. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 434 | The Company’s higher investment balances more than offset the decline in interest rates during the first nine months of 2008 as compared to the same period in 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 435 | The weighted-average interest rate earned by the Company on its cash, cash equivalents and short-term investments decreased to 2.66% in the third quarter of 2008 from 3.93% in the second quarter of 2008 and 5.27% in the third quarter of 2007. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 436 | Provision for Income Taxes
The Company’s effective tax rates for the third quarter and the first nine months of 2008 were approximately 29% and 30%, respectively, compared to approximately 32% and 31% for the three and nine months ended June 30, 2007, respectively. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 437 | The Company’s effective rates for both periods in 2008 differ from the statutory federal income tax rate of 35% due primarily to certain undistributed foreign earnings for which no U.S. taxes are provided because such earnings are intended to be indefinitely reinvested outside the U.S. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 438 | The lower effective tax rate for the first nine months of 2008 compared to the same period of 2007 is due primarily to a greater mix of foreign earnings. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 439 | The Internal Revenue Service (the “IRS”) has completed its field audit of the Company’s federal income tax returns for the years 2002 through 2003 and proposed certain adjustments. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 440 | The Company intends to contest certain of these adjustments through the IRS Appeals Office. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 441 | In addition, the Company is subject to audits by state, local, and foreign tax authorities. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 442 | Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 443 | However, the outcome of tax audits cannot be predicted with certainty. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 444 | If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 445 | Recent Accounting Pronouncements
In September 2006, the Financial Accounting Standards Board (“FASB”) issued SFAS No. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 446 | 157, Fair Value Measurements, which defines fair value, provides a framework for measuring fair value, and expands the disclosures required for fair value measurements. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 447 | SFAS No. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 448 | 157 applies to other accounting pronouncements that require fair value measurements; it does not require any new fair value measurements. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 449 | SFAS No. | 0001193125-08-156421/full-submission.txt |
0000320193 | 20080723 | 10-Q | 450 | 157 is effective for fiscal years beginning after November 15, 2007 and will be adopted by the Company beginning in the first quarter of fiscal 2009. | 0001193125-08-156421/full-submission.txt |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.