The objective of the Posts At Eventide web presence is to benefit readers seeking to understand Apple's financial performance and to serve as a repository of information and analysis for other independent AAPL analysts preparing quarterly estimates and share price forecasts.
This is one of a series of posts designed to provide data and historical context for the development of quarterly unit sales estimates for Apple's major hardware device product lines. This post details the unit sales for the Apple iPhone, iPod and Macintosh personal computers over the most recent ten fiscal quarters and iPad unit sales for the four fiscal quarters since the product has been in commercial release.
The Apple iPhone
There's no disputing the fact the iPhone is Apple's biggest revenue product. In the recent March quarter the sales of iPhones and related products and services generated almost 50% of Apple's $24.667 billion in reported revenue. Led by a 155% increase in domestic unit sales, the popular smartphone performed better than most analysts expects with a 113% increase in global unit shipments to 18.647 million.
While there is seasonality in the iPhone's unit sales performance, the outcome is more often determined by product supply rather than seasonal variations in demand. Apple's inability to produce sufficient quantities of iPhones to meet global demand following the product's annual refresh cycle has hampered unit sales in the third and fourth fiscal quarters of the year.
The chart below illustrates the consistent unit sales growth of the Apple iPhone with the June quarter (June quarter) of FY 2010 the obvious exception due to the unique issues surrounding the illicit publication of iPhone 4 photos prior to the product's release. Apple pulled back on shipments of the iPhone 3GS ahead of the iPhone 4's commercial debut.
Unit Sales | iPhone | Sequential | YOY | ||
FQ1 ’09 | 4,363 | -36.69% | 88.47% | ||
FQ2 ’09 | 3,793 | -13.06% | 122.72% | ||
FQ3 ’09 | 5,208 | 37.31% | 626.36% | ||
FQ4 ’09 | 7,367 | 41.46% | 6.89% | ||
FQ1 ’10 | 8,737 | 18.60% | 100.25% | ||
FQ2 '10 | 8,752 | 0.17% | 130.74% | ||
FQ3 ’10 | 8,398 | -4.04% | 61.25% | ||
FQ4 '10 | 14,102 | 67.92% | 91.42% | ||
FQ1 ’11 | 16,235 | 15.13% | 85.82% | ||
FQ2 '11 | 18,647 | 14.86% | 113.06% |
The Macintosh
For twenty consecutive quarters the Mac has outperformed the overall PC industry and in the recent March quarter Macintosh unit sales rose an impressive 28%. On March 5th I published a post titled The Apple Macintosh: Success In The Era of Handheld Devices. Although the Mac has been overshadowed by the Apple iPhone and is often overlooked in the era of the Apple iPad, the Mac continues to gain market share and new adherents to the platform.
Although the Mac's percentage contribution to Apple's total revenue has continued to decline, the Macintosh remains an essential component of Apple's revenue and earnings growth strategy. In the March quarter the Macintosh line produced $4.976 billion in revenue and represented about 20.2% of Apple's revenue haul for the quarter. Apple's retail stores play an important role in the continuing growth in Macintosh unit sales. The graph below illustrates the Mac's rising unit sales performance.
Unit Sales | Mac | Sequential | YOY | ||
FQ1 ’09 | 2,524 | -3.33% | 8.84% | ||
FQ2 ’09 | 2,216 | -12.20% | -3.19% | ||
FQ3 ’09 | 2,603 | 17.46% | 4.29% | ||
FQ4 ’09 | 3,053 | 17.29% | 16.93% | ||
FQ1 ’10 | 3,362 | 10.12% | 33.20% | ||
FQ2 '10 | 2,943 | -12.46% | 32.81% | ||
FQ3 ’10 | 3,472 | 17.97% | 33.38% | ||
FQ4 '10 | 3,885 | 11.90% | 27.25% | ||
FQ1 ’11 | 4,134 | 6.41% | 22.96% | ||
FQ2 ’11 | 3,760 | -9.05% | 27.76% |
The Apple iPod
The Apple iPod is in a phase of significant unit sales decline. Outside of the holiday quarter (Apple's FQ1), the iPod now contributes well under 10% of quarterly revenue and the Apple iPod touch, an iOS-based device, generates most of the product line's revenue total.
The mass adoption of smartphones with digital music player functionality has reduced global demand for specific-use digital music players. Apple maintains a commanding lead in the global market for digital music players, but the iPod line's unit sales decline will most likely continue for at least the next few quarters and the iPod touch will continue to generate most of the product line's revenue for the foreseeable future.
Unit Sales | iPod | Sequential | YOY | ||
FQ1 ’09 | 22,727 | 105.64% | 2.74% | ||
FQ2 ’09 | 11,013 | -51.54% | 3.47% | ||
FQ3 ’09 | 10,215 | -7.25% | -7.23% | ||
FQ4 ’09 | 10,177 | -0.37% | -7.92% | ||
FQ1 ’10 | 20,970 | 106.05% | -7.73% | ||
FQ2 '10 | 10,885 | -48.09% | -1.16% | ||
FQ3 ’10 | 9,406 | -13.59% | -7.92% | ||
FQ4 '10 | 9,051 | -3.77% | -11.06% | ||
FQ1 '11 | 19,446 | 114.85% | -7.27% | ||
FQ2 '11 | 9,017 | -53.63% | -17.16% |
The Apple iPad
In release for just over one year, the Apple iPad is having a much greater impact on the world of personal technology than the unit sales numbers suggest. Apple ended the March quarter with severely constrained supplies of the tablet device while the product dampens global demand for netbook PCs. Outside of the Apple iPad a market for digital tablets does not currently exist. Apple will maintain undisputed leadership in this product category well in calendar year 2012 and can sell all units produced.
iPad unit shipments in the third and forth fiscal quarters of FY2011 will be governed far more by production capacity than any other factor. The Apple iPad may be the most disruptive force to appear in the PC market since the mass adoption of personal computers began in the early 1980's. More on this topic following the release of Apple's June quarter results.
Unit Sales | iPad | Sequential | YOY | ||
FQ3 ’10 | 3,270 | - | - | ||
FQ4 '10 | 4,188 | 28.07% | - | ||
FQ1 '11 | 7,331 | 75.05% | - | ||
FQ2 '11 | 4,694 | -35.97% | - |
The Posts At Eventide Series Continues...
I'll be back in the coming weeks with additional data and analysis of Apple's recent quarterly performances and sales results of the company's popular products. I look forward to providing more information as we move toward the end of the June quarter and move further into the current fiscal year.
Robert Paul Leitao
Nicely done. This is exactly the breakdown I was looking for. Thanks
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