Apple 1997 Annual Report Download - page 4

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PART I
THE BUSINESS SECTION AND OTHER PARTS OF THIS FORM 10-K CONTAIN FORWARD-LOOKING STATEMENTS THAT
INVOLVE RISKS AND UNCERTAINTIES. THE COMPANY'S ACTUAL RESULTS MAY DIFFER SIGNIFICANTLY FROM THE
RESULTS DISCUSSED IN THE FORWARD-LOOKING STATEMENTS. FACTORS THAT MIGHT CAUSE SUCH DIFFERENCES
INCLUDE, BUT ARE NOT LIMITED TO, THOSE DISCUSSED IN THE SUBSECTION ENTITLED "FACTORS THAT MAY AFFECT
OPERATING RESULTS AND FINANCIAL CONDITION" UNDER PART II, ITEM 7 OF THIS ANNUAL REPORT ON FORM 10-K.
ITEM 1. BUSINESS
GENERAL
Apple Computer, Inc. ("Apple" or the "Company") was incorporated under the laws of the State of California on January 3, 1977. The
Company's principal executive offices are located at 1 Infinite Loop, Cupertino, California, 95014 and its telephone number is (408) 996-1010.
The Company designs, manufactures and markets microprocessor-based personal computers and related personal computing and
communicating solutions for sale primarily to education, creative, home, business and government customers. Substantially all of the
Company's net sales to date have been derived from the sale of personal computers from its Apple Macintosh-Registered Trademark- line of
computers and related software and peripherals. The Company operates in one principal industry segment across geographically diverse
marketplaces.
During 1997, the Company continued to implement certain restructuring actions aimed at reducing its cost structure, improving its
competitiveness, and restoring sustainable profitability. The Company's restructuring actions have included the termination of employees,
closure of facilities and cancellation of contracts. Further information regarding these restructuring actions may be found in Part II, Item 7 of
this Annual Report on Form 10-K (the "Form 10-K") under the subheading "Restructuring of Operations" included under the heading "Factors
That May Affect Future Results and Financial Condition," and in Part II, Item 8 on this Form 10-K in the Notes to Consolidated Financial
Statements under the heading "Restructuring of Operations," which information is hereby incorporated by reference.
PRINCIPAL PRODUCTS
Apple Macintosh personal computers were first introduced in 1984, and are characterized by their intuitive ease of use, innovative applications
base, and built-in networking, graphics and multimedia capabilities.
The Company offers a wide range of personal computing products, including personal computers, related peripherals, software, and networking
and connectivity products. All of the Company's Macintosh products employ PowerPC-TM- RISC-based microprocessors.
POWER MACINTOSH
The Power Macintosh "Flagship" line of high-performance personal computers is targeted at business and professional users and is designed to
meet the speed, expansion and networking needs of the most demanding Macintosh user. These Power Macintosh products not only support
virtually all existing Macintosh applications, but can also run MS-DOS and Windows applications when using SoftWindows-TM- software
from Insignia Solutions or Virtual PC-TM- software from Connectix Corporation.
The Power Macintosh "Value" line of personal computers is designed to appeal primarily to academic, consumer and first-time personal
computer users. Many of these products feature all-in-one box computing solutions, including software and hardware chosen specifically with
home and education users in mind.
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