Net sales of
iPods increased $73 million or
5% during the third quarter of 2007 and increased $569 million or 9% during the first nine
months of 2007 compared to the same periods in 2006. Unit sales of iPods increased 21% and 35%
during the third quarter and first nine months of 2007, respectively, compared
to the same periods in 2006. Strong
sales of iPods during the first nine months of 2007 were driven largely by
iPod nano and iPod shuffle that were updated in
September 2006.
During the third quarter and first nine months of 2007,
the net sales per iPod unit sold decreased by 14% and 19%, respectively,
compared to the same periods in 2006 primarily due to a shift in product mix
towards the lower-priced iPod shuffle and price reductions taken in September
2006 on the Company’s iPod product offerings.
·
Net sales of
iPhone and related products and services were $5 million during the third
quarter of 2007. iPhone revenue included in net sales reflects only the portion
recognized in accordance with subscription accounting over iPhone’s 24-month
estimated economic life. In the third
quarter of 2007, commencing with the June 29 launch, iPhone unit sales were
270,000.