Apple 1999 Annual Report Download - page 4

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PART I
THE BUSINESS SECTION AND OTHER PARTS OF THIS ANNUAL REPORT ON FORM 10-K ("FORM 10K") 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 FUTURE RESULTS AND FINANCIAL CONDITION" UNDER PART II, ITEM 7 OF THIS FORM 10-
K.
ITEM 1. BUSINESS
GENERAL
Apple Computer, Inc.-Registered Trademark- ("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 personal computers and related personal computing and communicating solutions for sale
primarily to education,
creative, consumer, and business 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 manages its business primarily on a geographic basis. The Company's geographic segments include the Americas, Europe, Japan,
and Asia Pacific. The Americas segment includes both North and South America. The European segment includes European countries as well
as the Middle East and Africa. The Japan segment includes only Japan, while the Asia Pacific segment includes Australia and Asia except for
Japan. Each geographic operating segment provides similar hardware and software products and similar services. Further information regarding
the Company's operating segments may be found in Part II, Item 7 of this Form 10-K under the heading "Net Sales," and in Part II, Item 8 on
this Form 10-K in the Notes to Consolidated Financial Statements at Note 9, "Segment Information and Geographic Data," which information
is hereby incorporated by reference.
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 8 on this Form 10-K in the Notes to Consolidated Financial Statements at Note 4, "Special Charges," 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-Registered Trademark- RISC-based microprocessors.
POWER MACINTOSH-Registered Trademark-
The Power Macintosh 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. The Company's current line of Power Macintosh systems was
introduced in August 1999 and is equipped with PowerPC G4 processors. With the addition of Apple networking software, Power Macintosh
systems can be used as workgroup servers.
POWERBOOK-Registered Trademark- G3
The PowerBook G3 family of portable computer products is specifically designed to meet the mobile computing needs of professionals and
advanced personal users. Incorporating powerful PowerPC G3
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