Apple 1998 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 1998 Apple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

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, consumer, 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 1998, the Company continued and essentially completed a restructuring plan commenced in 1996 aimed at reducing its cost structure,
improving its competitiveness, and restoring sustainable profitability. The Company's restructuring actions 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 heading "Factors That May Affect Future Results and Financial
Condition," and in Part II, Item 8 on this Form 10-K at Note 4 to the Notes to Consolidated Financial Statements, which information is hereby
incorporated by reference.
PRINCIPAL HARDWARE PRODUCTS
Apple Macintosh personal computers were first introduced in 1984, and are characterized by their intuitive ease of use, innovative industrial
designs and 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 RISC-based microprocessors.
POWER MACINTOSH
The Power Macintosh G3 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. With the addition of Apple networking software, Power
Macintosh G3 systems can be used as workgroup servers.
IMAC
Introduced in August 1998, iMac is targeted at the education and consumer markets. With an innovative industrial design, easy internet access
and a powerful PowerPC G3 microprocessor, iMac is suitable for a wide range of education and consumer applications.
1