Apple 2001 Annual Report Download - page 3

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Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of the Registrant's knowledge, in definitive proxy or information statements incorporated by reference to Part III of this
Form 10-K or any amendment to this Form 10-K. /x/
The aggregate market value of voting stock held by nonaffiliates of the Registrant was approximately $7,924,159,876 as of December 7, 2001,
and director and by each person who beneficially owns more than 5% of the outstanding Common Stock have been excluded in that such
persons may under certain circumstances be deemed to be affiliates. This determination of executive officer or affiliate status is not necessarily
a conclusive determination for other purposes.
351,722,532 shares of Common Stock Issued and Outstanding as of December 7, 2001
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.
The Company's fiscal year ends on the last Saturday of September. Unless otherwise stated, all information presented in this Form 10-K is
based on the Company's fiscal calendar.
Item 1. Business
Company Background
Apple Computer, Inc. ("Apple" or the "Company") was incorporated under the laws of the state of California on January 3, 1977. 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 over the last five years have
been derived from the sale of its Apple® Macintosh® line of personal computers and related software and peripherals.
Business Strategy
Apple is committed to bringing the best possible personal computing experience to students, educators, creative professionals, businesses and
consumers around the world through its innovative hardware, software, and Internet offerings. The Company believes that personal computing
is entering a new era in which the personal computer will function for both professionals and consumers as the digital hub for advanced new
digital devices such as digital music players, personal digital assistants, digital still and movie cameras, CD and DVD players, and other
electronic devices. The attributes of the personal computer, including its ability to run complex applications, possess a high quality user
interface, contain large and relatively inexpensive storage, and easily connect to the Internet in multiple ways and at varying speeds, can
individually add value to these devices and interconnect them as well. Apple is the only company in the PC industry that designs and
manufactures the entire personal computer – from the hardware and operating system to sophisticated applications, and ties it all together with
Apple's innovative industrial design, intuitive ease-of-use, and built-in networking, graphics, and multimedia capabilities – uniquely
positioning the Company to offer digital hub products and solutions.
Business Organization
The Company manages its business primarily on a geographic basis. The Company's geographic operating segments include the Americas,
Europe, Japan, and Asia Pacific. The Americas segment includes both North and South America, except for the Company's Retail segment
which operates Apple-
owned retail stores in the United States. The Europe 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. Non-geographic operating segments include the
Company's subsidiary, FileMaker, Inc. and the Company's Retail segment. Further information regarding the Company's operating segments
may be found in Part II, Item 7 of this Form 10-K under the heading "Segment Operating Performance," and in Part II, Item 8 on this Form 10-
K in the Notes to Consolidated Financial Statements at Note 11, "Segment Information and Geographic Data," which information is hereby
incorporated by reference.
2
Principal Hardware Products