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Analyze Apple Inc. by segment

Segment disclosure by Apple Inc. (AAPL) provides sales information for its major product lines for three recent years as follows (in millions):

Segment	Year 3	Year 2	Year 1
iPhone	$137,781	$142,381	$164,888
Mac	28,622	25,740	25,198
iPad	23,724	21,280	18,380
Wearables, Home Accessories	30,620	24,482	17,381
Services	53,768	46,291	39,748
Total	$274,515	$260,174	$265,595

The Wearables, Home Accessories segment includes Airpods, Apple Watch, and Apple TV. The Services segment includes sales from iTunes Store, App Store, Mac App Store, TV App Store, iBooks Store, Apple Music, AppleCare, and Apple Pay.

Question Content Area

a. Prepare a vertical analysis of Year 3 sales. (Round percentages to nearest whole percent.)

Segment	Year 3 Sales	Percent of Total Sales
iPhone	$137,781	fill in the blank 07011f05c018046_1%
Mac	28,622	fill in the blank 07011f05c018046_2%
iPad	23,724	fill in the blank 07011f05c018046_3%
Wearables, Home Accessories	30,620	fill in the blank 07011f05c018046_4%
Services	53,768	fill in the blank 07011f05c018046_5%
Total sales	$274,515	fill in the blank 07011f05c018046_6%

Which product had the greatest percentage of Year 3 sales? Which product had the least percentage of Year 3 sales? Greatest percentage

iPhoneiPadMacServicesWearables, Home AccessoriesiPhone

Least percentage

iPhoneiPadMacServicesWearables, Home AccessoriesiPad

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Vertical analysis is a proportional analysis of a financial statement, where each line item on a financial statement is listed as a percentage of another item. The total should equal 100%.

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b. Prepare a horizontal analysis of the change in sales from Year 1 to Year 3. (Round percentages to nearest whole percent. For those boxes in which you must enter subtractive or negative numbers use a minus sign.)

Segment	Year 3	Year 1	Increase (Decrease) Amount	Increase (Decrease) Percent
iPhone	$137,781	$164,888	$ fill in the blank bae29306207d064_1	fill in the blank bae29306207d064_2%
Mac	28,622	25,198	fill in the blank bae29306207d064_3	fill in the blank bae29306207d064_4%
iPad	23,724	18,380	fill in the blank bae29306207d064_5	fill in the blank bae29306207d064_6%
Wearables, Home Accessories	30,620	17,381	fill in the blank bae29306207d064_7	fill in the blank bae29306207d064_8%
Services	53,768	39,748	fill in the blank bae29306207d064_9	fill in the blank bae29306207d064_10%
Total sales	$274,515	$265,595	$fill in the blank bae29306207d064_11	fill in the blank bae29306207d064_12%

Which product grew the most in sales, in percentage terms, using Year 1 as the base year?

iPhoneiPadMacServicesWearables, Home AccessoriesWearables, Home Accessories