Table of Contents Page No

1.0 EXECUTIVE SUMMARY 2

2 2.0 COMPANY DESCRIPTION 2

2.1 Vision Statement 3

2.2 Mission Statement 3

3.0 PRODUCT DESCRIPTION 3

4.0 SITUATION ANALYSIS 3

4.1 Industry Analysis 4

4.2 SWOT Analysis 7

4.3 Competitors Environment 9

5.0 MARKETING OBJECTIVE 9

6.0 TARGET MARKET 10

7.0 POSITIONING STRATEGY 10

8.0 MARKETING STRATEGY 11

9.0 FINANCIAL PROJECTION & EVALUATION 16

10.0IMPLEMENTATION PLAN 20

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Apple Ibangle Presentation Link-
http://slidesharemailer.com/s/xr6KKQ0GSp2WQPXsZYKyUA/h1

1.0 EXECUTIVE SUMMARY

The marketing plan includes the fundamental for the introduction of a unique and
ingenious product known as iBangle by Apple Inc. The analysis of internal and
external of the organisation, competitive environment enables the team to propose
dynamic and constructive strategies for iBangle to fulfil the company’s objectives
and strategic mission. The iBangle will be introduced as another innovation of Apple
and marketed as mp3 player in portal music player (PMP) sector. This also will
enable Apple Inc to penetrate and dominate the PMP sector and emerge as leader in
innovation of unique products as well as successfully gain market share. The
marketing strategies are outlined to gain market segment size of
102,665,043(targeted) male and 103,129,321(targeted) female of 15-64 years with
forecasted sales growth average at 4.8% over next 3 years and profit of USD
8,229,000. The accomplishment and success of iBangle will be measured with the
capture of market share in PMP sector, as well as penetrating geo-clustering
targeted market in across the global.

2.0 COMPANY DESCRIPTION

Apple Inc. was formed by Steve Jobs and Steve Wojniak in April 1976 and
incorporated on 3rd January 1977. The organisation’s headquarter is situated at
Cupertino,California.The current CEO is Steve Jobs. Apple Inc. mainly involved in
industry related to computer software, hardware, and consumer electronics.The
organisation mainly design, manufacture and market product that varies from
personal computer,

portable digital music players, mobile communication devices and various related
software, services, peripherals, and networking solutions. The main distribution
channels are its online stores, retails stores, direct sales, and others. Moreover, the
customers range from consumers, corporations, small and medium business,
education, enterprise, governments and creative customers. The organisation
currently has 35,100 employees and growth of 62.5%. According to fiscal year
ending report of September 2008, Apple Inc. had generated the following revenue
and shows growth of 35.5% for one year growth and about 38.3% of income
growth:-

TABLE 1: Financial Data of Apple Inc. for 2008(www.finance.yahoo.com/q/is?

s=AAPL&annual)

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 USD
Total Revenue 32479000
USD1114500
Gross Profut 0
Net Income USD 4834000
Total Asset Value USD 3957200
Total Cash Flow USD 2523000

2.1 Vision Statement

iBangle product will enable Apple Inc to establish as market leader inportal music
sector

Apple Inc can be arevolutionary organisation in providing digital lifestyle for

customers

2.2 Mission Statement

Apple Inc is committed to provide a futuristic and empowered music listening

experience to the customer through iBangle. dominate the market.

3.0 PRODUCT DESCRIPTION

‘iBangle’ will be future version of iPod product and will be positioned as the bracelet
iPod that available in the market.It will be equipped with 2GB capacity and different
sizes to accommodate customer’s wrist.The iBangle features and design as shown
below :-

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(www.Image.google.com)

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The product will be able to provide exceptional music listening experience and have
multifunction as mp3 player as well as hand accessory (bangle). The product also
marketed as funky and matchless alternative device for portal music device and
packaged as unisex outlook that be suitable to be worn by men and women. The
product is made of aluminium.

4.0 SITUATION ANALYSIS

4.1 INDUSTRY ANALYSIS

4.1.1 Usage

Apple Inc. has sold 22.1 million iPods during 2008 holiday season compared to 4580
unit in 2005. The sale of 21.0 million units in Q1 of 2007 also shows 50% higher
than Q1 of 2006. This shows steady growth of iPod since 2005. Moreover, it
increased about 383% from 2005. This projects strong value of brand position in the
customers. Therefore, we strongly believe that iBangle can penetrate the usage
trend since this is a variant of iPod.

Chart 1:iPod Unit Sales(www.macworld.com/article/131874/2008/01/ipodsales.html)

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4.1.2 Trends

In 1960, 8-track player was introduced and followed by personal cassette player in
1979 and later with walkman, walk disc player, until MP3 player and MP4 player.
The taste and trend of portable music players change tremendously among
customers. The factors that influence the evolution in the trends are:-

a.Customer preference to better sound quality

b.The sizes of iPod and mp3 players are more compact and easy to carry. c.The
storage capacity is bigger and customers can opt for different sizes compared to
other devices. d.The introduction of storage format like mp3, acc, and wma enable
to customer to store more music compared to earlier earlier version

The market trend is expected to show prolonged growth and future products of
portable players that have sophisticated design, features and benefits like iBangle
can gain customer interest as well as market demand

4.1.3 Profitability & Future Growth Potential(www.finance.yahoo.com)

Apple had gain revenue of 48% from iPod Business Division in first fiscal of 20074,
meanwhile other music related products contributed 9% of total profit. We
estimated that growth of average of 4% in sales based on forecasting projection by
year 2012 and expansion of 18.3% in population by 2015.

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4.2.1 Strength

4.2.1.1 Brand Position

Apple Inc. is one of the most progressive and established IT brand in the IT industry.
The organisation had managed to create strong brand value position among its
customers. Apple products often associated with concept of fun, energetic,
sophisticated, and quality and it generated loyal and enthusiastic customers that
support Apple brands.The supremacy loyalty of customers shows that Apple
managed to gain customers as well as sustain them. The sales of 22.1 million iPod
show the customers consumption of Apple products. The customers subscribes to
services and products that offered by Apple and willing to come back for more
Apple products lines. This can create opportunities for Apple to market iBangle
more proficiently

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4.2.1.2 Financial Strength

Apple Inc have stable and strong financial factor in the IT industry. The organisation
managed to generate net income of USD 4834.0 million in 2008 and USD 2,523,000
of Cash flow(www.finance.yahoo.com/q/is?s=AAPL&annual).

This shows that the organisation have capabilities to invest sufficient amount to
design, manufacture, and market iBangle in the targeted market.

4.2.1.3 Innovation and Improvement

4.2.3Opportunity

4.2.3.1 Better quality control implementation

The Apple Inc also can increase its quality control sector to be able to provide more
enhanced and quality product to its customers.

4.2.3.2 Introduction of new products

Apple had been massive designing, and manufacturing new products for its
customers compared to the competitors like Sony, Samsung. Therefore, Apple can
penetrate PMP field with new products like iBangle efficiently.

4.2.3.3 Brand awareness

The Apple has developed strong brand awareness among customers and in the
international market. Therefore, Apple Inc can create market opportunity for iBangle
more efficiently because the customers are more perceptive and easily accept
Apple products compared to other brands due to brand awareness. Moreover, the
recognition of Apple brand in the international arena also can generate international
market opportunities for iBangle.

4.2.4Threat

4.2.4.1 Strong Competition

Apple Inc also faced competition in today’s global oligopoly market since the
industry is been influenced by several major competitors such as Sony, Samsung,
HP and others.

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4.2.4.2 Financial Crisis

The inconsistency of global financial stability and world stock market can induce
crisis and problems for Apple Inc during introducing new products to the market.
The financial crisis can force customers to retreat and not support any new products
due to personal financial problems.

4.2.4.3 Political Unstable

One of major crisis that the organisation will face during launching iBangle is
political instability in some countries in the world. This can cause by few factors
such as internal political power struggle, transition of ruling power and others.These
dilemmas can affect launching of iBangle in certain countries such as South Africa,
Thailand, Philippine, and others even though there is vast market opportunity.

4.3COMPETITORS ENVIROMENT

Apple Inc.’s main competitors in IT industry are Sony, Samsung, IBM and HP.
However, top competitors that have capabilities and financial strength to produce
similar products with Apple are Sony and Blackberry especially for products like MP3
and MP4. Sony had been veteran in portal music device

circle and later entered by Apple. Apple managed to capture 50% of marketing
share since 2005 but Sony also progressively gain market share of 20% in 2006 and
30% in 2007(www.venturacountystart.com/news/2007/nov/26)

It shows that Sony has capacity and resources to design, manufacture product that
have similarities with iBangle.

5.0 MARKETING OBJECTIVE

The marketing objectives of iBangle for Apple Inc as follows:-

To establish as market leader in creating and manufacturing innovative products in

IT industry

• To enable Apple Inc to satisfy, fulfil and equipped the consumer’s personality and
lifestyle needs as well to increase Apple popularity as an icon in digital lifestyle
product.

To establish as market leader in portal music player sector by increasing market

share

To enable Apple Inc to monopoly the portal music device sector share by 75% by
year 2012

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To enable the Apple Inc revenue from iPod BusinessDivision to increase to 63% by
year 2015

6.0TARGET MARKET

6.1 Segment Identification

iBangle is a version of MP3 player that can be worn on wrist to be launched within
the portable music player (PMP) sector in U.S

6.2 Segment Needs

iBangle will be a device that accommodate social needs of customer such

as it will be perceived as one of tools of digital lifestyle, fun and cool device and
sense of belonging within peer group, brand that need to be owned, cultural
lifestyle and others needs. It also cater personal needs such as for customers that
want to experience music without tangled with wires when they performing the
daily activities, luxurious activities such as exercise, jogging, surfing and others
activities.

6.3 Segment Trends

The current trend shows transcend from wired and bulky PMP to light, easy,
compact in size, more capacity, less wired or wireless and multifunction players like
MP3 players. The trends also change towards wireless player, brand conscious and
digital lifestyle. Therefore, market opportunity for iBangle is far vaster due to trend
transformations.

6.4 Segment Growth Potential

According to statistic report, the segment growth can be projected increase of

18.3% over next 5 years (2015) for 21 years and above subsets. Meanwhile, the
segment for 14-17 years old, anticipated growth is 0.93% and 19-24 years old is
about 10.52%.

6.5 Size of Segment (Population)

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According to statistics report of CIA, the size of segment 15-64 years old consists of
102,665,043 male and 103,129,321 females.

7.0POSITIONING STRATEGY

Apple has been enable to create and revolutionised the portal music player sector
by adapting to visceral design, and manufacture creative, innovative, and cool
products such as iPods. Moreover, iPod managed to became measurement against
any portal music

players since its penetration into the market.9 Therefore, iBangle player will be
adapting strategy by being the ultimate must have mp3 player in the perception of
customers. The organisation will be adapting strategy of product differentiation in
marketing iBangle in

the market. Moreover, Apple also will be providing quality and excellent customer
service for iBangle customers. Apple will be developing unique selling proposition
(USP) for iBangle by differencing iBangle from other mp3 player through its designs,
features, and benefits that shown below

Benefits positioning: listen to music without tangles of wires and wear it as

accessory • Features: include multi-track touchpad, wireless ear headphones,
customised according to wrist size, better music quality, and download music via
Bluetooth • Product Positioning: the shape of bangle enable customer to wear at
wrist, portray cool look, personalised mp3 player (other people might not notice the
player) and the first mp3 player in the world designed as bangle. • User Positioning:
iBangle as the most suitable and coolest trend for digital lifestyle oriented
customers

Even though iBangle main function is mp3 player, it also will be marketed as hand
accessory. Apple has strong brand personality (image differentiation) among its
customers and worldwide can enable them to market iBangle to the targeted
market more efficiently. The features, benefits, and unique design of iBangle can
aid the company to create impression of must have mp3 player in the cognitive
mind of customers. The success of iPod in 2000 as shown below is an example of
people acceptance of Apple products.

8.0MARKETING STRATEGY

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8.1 Product Strategy

8.1.1 The core

iBangle is mp3 player that worn at wrist equipped with wireless ear headphones to
listen to music.

8.1.2The actual product

The design of mp3 player is unique and innovative by Apple and be worn wrist. It
also can function as hand accessory. As for banding, Apple logo is embedded on the
bangle and the colour for

iBangle is silver to cater for unisex customer as well as to establish as stylish

bangle. The trade name is iBangle™, an Apple product. The brand personality
adapted for this product consist ofstylish, cool, trendy, originality and think
different. The iBangle also equipped with 1 year warranty and customer service

8.1.3Based on life product life cycle, iBangle is new product to the market and
currently no imitation products. Therefore, proactive and comprehensive marketing
campaign can enable iBangle to be recognised immediately and sales of the
product will be accelerating progressively.

8.1.4The unique design of iBangle will enhance its’ differentiation among existing
portal music players and generate advantages to the product. Moreover, Apple is
known to produce award winning innovative products as stated below.

Apple had worn eight iF (International Forum) Product Design Awards at CeBIT 2008
show in Hanover, Germany for out of nine products that were submitted for
consideration.

8.1.5The other factors that create differentiation for iBangle is the Apple managed
to create emotional benefits12 for its users. Therefore, iBangle also can provide
emotional benefit to customers in form of maintaining simplicity, stylish design,
easy to use and constructive customer service

8.1.6The iBangle also considered ‘green’ product since the main component to
manufacture iBangle is aluminium. Aluminium is one of the most recyclable
materials. This enable iBangle to gain status as ‘eco-friendly product’ and infiltrate
environmental concern oriented customers.(www.ezinearticles.com)

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8.1.7The iBangle product has another distinguish advantage that is the brand name
of Apple. Apple had become one of the most powerful icons in the IT industry due to
its visceral design, unique products, quality and features. Therefore, branding Apple
logo on iBangle will increase its value and perception among the customers.

8.2 Price Strategy

As for pricing strategy for iBangle, there are several factors should be considered as
such consumer demand, product lifecycle and potential substitutes. The price of
iBangle will be at USD 390.00. This is because at initial introduction, only 10,000
units will be produced and marketed in U.S.A. The profit margin is 30%. Apple Inc
should given important aspect toward customer demand. Since Apple had be able
to portray themselves as icon of PMP sector through introduction of iPod generation,
iBangle is can create massive demand among customers due to its unique design
and features. The skimming price strategy will be adapted to market iBangle to the
customers. The price will be set at USD 399.00 at introduction stage and price will
be reviewed at later stage of product lifecycle. The organisation also has
advantages such there is no substitute or imitation product like iBangle that
available currently on the market. However, potential substitutes produced by
competitors is possible, therefore Apple have to establish

as market leader for iBangle. This can create market demand for iBangle since it
has unique characteristics. One of the examples of successful pricing strategy can
be seen in sales of iPod

in the market and it shown in Chart 2 www.finance.yahoo.com

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8.3Promotion Strategy

8.3.1 Objectives

• To create strong awareness about iBangle throughout the target customers (14 to
29years old) as well as parents

• To penetrate and increase market shares in portal music player sector and
override competitors

One of the promotional important outputs is to portray iBangle as ‘the futuristic

mp3 player and the coolest product for everyone’.

The media selection for promoting iBangle is varies for the selected

customers group. However, one of the most powerful media is Internet media. The
internet usage in United States is about 223 million in 2008
www.cia.gov/library/publication . It shows creative advertisements via online can
penetrate the target customer faster and more efficient. Moreover, online store also
can boost the sales of iBangle.

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 Moreover, Apple also will be using electronic media as advertisement arena to
launch iBangle to the world. Apple is knows for creating innovative, and unique
advertisements to promote their products such as in using slogan

‘Think Different’, use famous ‘free thinkers’ like Pablo, John Lennon, Mahatma
Gandhi17and others to shows that Apple product is unique and different from
others. Therefore, unique advertisement such as constant advertisement about
iBangle at prime time TV shows, radio shows can create brand awareness among
the customers.

Other than that, Apple also will be using idols and international stars to promote
iBangle. Apple is planning using teen idol Hannah Montana as teen ambassador to
promote iBangle to teenagers group. Furthermore, in order to penetrate the current
trend and culture, iBangle will be attached to celebrities such as Beyonce, Missy
Elliot, and Jason Marz.The product will be worn by these stars in the video clips and
photography session for magazines and events. The personalities from sport arena
such as Cristiano Ronaldo, and S. McGee also will be recruited to promote iBangle.
The celebrities spotted with iBangle can create brand awareness among customer
more massively.

Apple will be running advertisement on iBangle during important events like Super
bowl games, NBA, and World League. This is to target sport oriented customers.

Apple also will sponsor prime time TV shows like ‘Leverage’ and ‘C.S.I’ to promote
iBangle for the young adults customers. The advertisement of iBangle will be aired
during the Showtime to capture young adults’ attention on iBangle

Table 2 shows the selection of media that used for iBangle promotion.

Media Examples
Television MTV,ESPN
Radio Universities channels,MIX96
Magazine For girls: cosmo,ELLE
For Boys: Sport mabazine,american male magazine.
Internet Banner Advertisement pop up advertisement
Outdoors billbords,prints,e-Billboards
Other Body art,ibangle brand is drawn on cheerleader
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 during a sport
Public Sponrship activites such as for formula1
relations
publicity Press release about ibangle,massive electronic media
coverage.

8.4 Place Strategy

Other than that, the company will be choosing distribution channels such as

a. online stores

b. retail stores

c. direct sales

One of the most established distribution channels is Apple retails stores. Therefore,
iBangle will be launched and marketed at all Apple retails stores across the country
for the success of iBangle. Apple managed to gain USD 1.45 billion from 208 stores
in 2008 www.ejshmidt.com/blog ensure that retail store is one of the most
successful distribution channels.Moreover, online stores also another

important distribution channel that can aid the sales of iBangle and will be able to
penetrategeo-clustering segment more proficiently.

9.0FINANCIAL PROJECTION & EVALUATION

Average-Cost Pricing
B.calculation of actual
A. Calculation Of Planned profit if only item are
Profit if items are sold 10000 sold 10000
Calculation of Cots: Calculation of Cots:
Fixed overhead expenses $200,00 Fixed overhead expenses $200,00
17
 0 0
Labor and Materials 700,000 Labor and Materials 700,000
$900,00 $900,00
Total Costs 0 Total Costs 0
3,000,00
"Planned" Profit 0
$3,900,0
Total costs and planned profit 00
Calculation of profit(or $3,990,0 Calculation of profit(or $3,900,0
loss): 00 loss): 00
$900,00 actual unit sales x price $900,00
actual unit sales x price (below) 0 (below) 0
$3,090,0 $3,000,0
Mius Total Costs 00 Mius Total Costs 00
Profit
Calculation Of Reasonable
Price:
Expected Total Costs and $3,900,0
Planned profit 00
Planned number of items to be
sold $10,000
Reasonable price $390.00

Cost Classification For an Ibangle

Compone
nts
Total
Costs Variable Fixed
Operation Expenses $18,000
DIRECT LABOUR 0 180000 0
Direct Supervision 50000 50000 0
Social Security 20000 150000 0
Materials 110000 110000 0
Operations Overhead 0 0 85000
Subtotal 36000 490000 85000

Non Operating Expenses

Advertising 35000 0 35000
Promotion 20000 0 20000
Field sales 15000 0 15000
Product management 15000 0 15000
Marketing management 20000 0 20000
product development 50000 0 50000
Marketing research 20000 0 20000
Customer service 70000 50000 20000

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Testing 50000 0 50000
General & Administrative 0 30000
Subtotal 29500 50000 275000

Total
65500 540000 360000

Based on Table 3 and Table 4, the price of iBangle for introduction stage
will be USD 390.00 will margin profit of 35%.

Contribution Margin Statement for I Bangle

Product Ibangle
Income Statement
31-Dec-10
Revenues(no.of Units X price) 3900000
DIRECT LABOUR 180000
Direct Supervision 50000
Social Security 150000
sales force comission 100000
Customer service 70000
Materials 110000
Operation overhead 75000
Total Variable costs 735000
Contribution Margin rate 30%
contributionmarging amount 1,170,000
Fixed cost
Operation overhead 10000
Advertising 35000
Promotion 20000
Field sales 15000
Product management 50000
Marketing management 20000
product development 15000
Marketing research 20000
Customer service 50000
Testing 50000
General & Administrative 30000
Total fixed costs 315000
operating profit 855000

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Based on Table 5, projection of profit margin is 30% and iBangle profit
contribution to Apple revenue by 2010 is USD855, 000.

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21
10.0 IMPLEMENTATION PLAN

11.0CONTROL MECHANISM AND EVALUTION OF EFFECTIVENESS

Moreover, the marketing team also have to implement effective control mechanism
and evolution of effectiveness method in order to ascertain the launch of iBangle is
successful; the marketing strategies are efficient and progress constructively
according to projection especially in sales and penetrating targeted market. The
suggested apparatus had been designed to aid the department to evaluate the
effectiveness of iBangle marketing plan and objectives are shown below:-

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a.Constant market survey and research such as questionnaire method, observation
on consumer behaviourism will be implemented in order to evaluate the acceptance
of iBangle among its customers.

b.Quality Control mechanism also will be introduced in order to monitor the quality
of iBangle since this is the debut to the market. This will enable the team to capture
any defects, faulty parts that can occur after the customer purchase and use the
product.

c.Customer Service and technical support team will be established to aid the
customers regarding any problems, defects, technical problems and others. This
can ensure the quality of iBangle will not be compromised.

d.The department also will generate and implement comprehensive plan to monitor
the sales of iBangle, the re-evaluate the market needs, and prepare marketing
strategies to gain more customers in the future.

e.The department will conduct customer survey to obtain report on the customer’s
satisfaction toward iBangle to gather suggestion improvements that might be
needed to enhance the second generation of iBangle in the future.

Apple Q2 2008 by the Numbers

News Analysis. Apple continued to deliver strong results, posting its strongest fiscal
second-quarter revenue and earnings ever. How's 43 percent revenue growth? If
there is a U.S. economic crisis, Apple isn't yet feeling it. Fiscal second-quarter
revenue reached $7.51 billion, up from $5.26 billion a year earlier. Net profit
jumped from $770

million a year earlier to $1.05 billion, or 87 cents and $1.16 earnings per share,
respectively. Looking ahead, Apple predicted fiscal third-quarter revenue of $7.2
billion, up 33 percent year over year, and $1.00 earnings per share. During the
second quarter, Mac sales grew 51 percent year over year, the strongest Apple has
seen in two decades. Apple sold 2.289 million Macs, with 1.43 million being
portables. Mac revenue grew 54 percent year over year—61 percent for portables.
Mac inventory increased about 60,000 units during the quarter, in part because of
MacBook Air

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As expected, iPod units marginally gained year over year (1 percent) and declined
sequentially (52 percent). Apple shipped 10.64 million iPods during the quarter.
Shuffle sales declined, but bumped up following price cuts. Based on analyst
numbers, Apple claims 73 percent of the U.S. MP3 market share. The company
ended the quarter with four to six weeks of iPod inventory. Related: Apple ended
the quarter with about 50 million iTunes customers Apple shipped 1.73 million
iPhones during the quarter, but didn't realize all the revenue. Apple won't realize
revenue or product cost on iPhones sold after March 6 until the release of iPhone
2.0 software, which is now expected at the end of June. The decision is one of those
accounting things, related to Apple offering the software update for free.

Apple announced iPhone 2.0 on March 6

24
Apple claims that more than 200,000 developers have signed up for the iPhone
SDK. One-third of Fortune 500 companies and 400 educational institutions have
signed up for the iPhone Enterprise Beta program. Clearlysomebody is interested in
connecting the iPhone to Microsoft Exchange Server. While iPhone sales declined 26
percent sequentially, Apple couldn't meet demand, particularly among its company
stores. "We expected iPhone to decline more sequentially than it did," said Apple
Chief Operating Officer Tim Cook on Apple's earnings conference call. He
acknowledged inventory as being "low" in Europe and the United States. Despite
the shortages, Apple executives expressed confidence that the company would sell
10 million iPhones by the end of the calendar year. People have been buying
phones from Apple stores with the intention of activating them later, Cook said. He
described the shortages as a "proxy for the worldwide demand of the phone." That
could be construed to mean that phones bought in the United States are ending up
elsewhere, even unlocked. Cook wouldn't quantify the number of unlocked phones
but acknowledged that it is "significant".

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Apple retail stores posted a shockingly strong quarter. Direct sales, whether in-store
or online, were 53 percent, up from 49 percent a year earlier. Retail store revenue
rose 74 percent. Apple stores sold 458,000 Macs, a 67 percent year-over-year
increase. Average in-store sales increased 48 percent. Apple stores had 33.7 million
visitors during the quarter, up 57 percent year over year. The company claimed that
50 percent of customers were new to Mac. Be careful: That doesn't mean all those
customers bought Macs. Apple ended the quarter with 208 stores, 27 outside the
United States. Apple plans to have opened 45 new stores during fiscal 2008. New
stores are coming to Australia and China, among other countries. Overseas Apple
retail stores appeared to have little impact on broader international sales, which
sequentially declined slightly to 44 percent of the quarter's revenue. That said,
sales were strong in all Apple's geographies, in unit shipments up 45 percent or
more year over year in every region

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Apple's Best Buy expansion briskly continued to 400 stores at quarter's end. Apple
expects to be in 600 of Best Buy's nearly 1,300 stores by summer. Education sales
were up by 35 percent year over year in the United States, the strongest growth
Apple has seen in eight years. Cook observed that the growth results come well
ahead of the traditional educational buying cycle. Apple's gross margins for the
quarter were better than expected, 32.9 percent, but still down from 35.1 percent a
year earlier. Apple generated $1 billion in cash during its fiscal second quarter,
ending the quarter with $19.4 billion. Posted by Joe Wilcox on April 23, 2008 6:30
PM.

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