Apple 1994 Annual Report Download - page 6

educational software. Claris Corporation, a wholly owned subsidiary of the Company, develops, publishes, and distributes application software
in a variety of established personal productivity categories, such as database management and graphics, for Macintosh and Windows-based
systems. Claris also publishes and distributes software developed by independent developers through its Claris Clear Choice (TM) labeling
program. Claris products are distributed primarily through independent software resellers.
Networking and Connectivity Products
The Company offers a full line of workgroup server systems that provide file, print and communications services to varying size workgroups.
The Company also provides networking and communications products that connect Apple systems to local area networks, providing access to
other computers and computing environments. These computing environments include IBM's large and small systems and Digital Equipment
Corporation's VAX, as well as systems conforming to the Open System Interconnection (OSI) and Transmission Control Protocol/Internet
Protocol (TCP/IP) standards.
On-Line Services
The Company recently launched eWorld(TM), an on-line service which provides a global electronic mail system together with news,
information and other services. This on-line service also includes eWorld for Macintosh and NewtonMail (TM), eWorld's messaging service
for Newton.
Marketing and distribution
The Company distributes its products principally through third-party computer resellers. The Company is also continuing its expansion into
new distribution channels, such as mass merchandise stores, consumer electronics outlets and computer superstores, in response to changing
industry practices and customer preferences. The Company's products are sold primarily to business and government customers through
independent resellers, value-added resellers and systems integrators; to home customers through independent resellers and consumer channels;
and to education customers through direct sales and independent resellers. In order to provide products and service to its independent resellers
on a timely basis, the Company distributes its products through a number of Apple distribution and support centers.
Business customers account for the largest portion of the Company's revenues. Business customers are attracted to the Macintosh in particular
for a variety of reasons, including the availability of a wide variety of application software, the reduced amount of training resulting from the
Macintosh's intuitive ease of use, and the ability of the Macintosh to network and communicate with other computer systems and environments.
Apple personal computers were first introduced to education customers in the late 1970's. In the United States, the Company is one of the major
suppliers of personal computers for both elementary and secondary school customers, as well as for college and university customers. The
Company is also a substantial supplier to institutions of higher education outside of the United States.
In the United States, the Company's formal commitment to serve the federal government began in 1986 with the formation of the Apple Federal
Systems Group. Although the Company has contracts with a number of U.S. government agencies, these contracts are not currently material to
the Company's overall financial condition or results of operations.
Presently, the United States represents the Company's largest geographic marketplace. The Apple USA organization, based in Campbell,
California, focuses on the Company's sales, marketing, and support efforts in the United States. Products sold in the United States are primarily
manufactured in the Company's facilities in California, Colorado, and Singapore, and distributed from facilities in California and Illinois.
Approximately 45% to 46% of the Company's revenues in recent years has come from its international operations. The Company has two
international sales and marketing divisions, consisting of the Apple Europe
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