Apple today filed its annual report (SEC form 10-K) with the Securities and Exchange Commission. In the document, Apple reported that net sales increased US$379 million or 7% during 2002 compared to 2001, while Mac sales were relatively flat year-over-year at approximately 3.1 million units. Sales from software, service, and other sources rose $248 million or 26% in 2002. This increase was driven by several factors, including a 28% increase in combined third-party and Apple-branded software sales; $143 million in net sales of iPod; a 9% increase in the sale of computer accessories; and a 14% increase in service revenue. Overall unit sales of Macintosh portables grew by 92,000 units or 10% in 2002, with PowerBooks and iBooks representing 33% of total Apple systems sales.