Apple 2002 Annual Report Download - page 4

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One of the main goals of the retail initiative is to bring new customers to the Company and expand its installed base through sales to both first
time computer buyers and those switching from other computing platforms. By operating its own stores, the Company is able to better control
the customer retail experience. The stores are designed to enhance the presentation and marketing of personal computing
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products. The stores employ experienced and knowledgeable personnel, provide post sale advice and support, offer a wide selection of third-
party products selected to complement the Company's own products, host training and marketing presentations, and provide certain hardware
support services. Additionally, the stores provide a forum in which the Company is able to present entire computing solutions to users in areas
such as digital photography, digital video, music, children's software, and home computing. Recent survey results available to the Company
indicate that approximately 40% of customers buying systems in its stores do not currently own a Macintosh.
Education
For more than 25 years, the Company has focused on educational uses of technology. The Company believes that effective integration of
technology into classroom instruction can result in higher levels of student achievement, especially when used to support collaboration,
information access, and the expression and representation of student thought and ideas. The Company's commitment to education encompasses
a range of products and services designed to help schools maximize their investments in technology. This commitment is manifest in many of
the Company's products and services, including hardware that meets the needs of education customers, video editing solutions, wireless
networking capabilities, student information systems, and high-quality curriculum and professional development solutions.
Creative Professionals
Creative professionals constitute one of the Company's most important markets for both hardware and software products. This market is also
important to many third-party developers who provide Macintosh-compatible hardware and software solutions. Creative customers utilize the
Company's products for a variety of creative activities including digital video and film production and editing; digital video and film special
effects, compositing, and titling; digital still photography; graphic design, publishing, and print production; music performance and production;
audio production and sound design; and web design, development, and administration.
The Company designs its high-end hardware solutions, including servers and desktop and portable Macintosh systems, to incorporate the
power, expandability, and features desired by creative professionals. Additionally, the Company's client operating system, Mac OS® X,
incorporates powerful graphics and audio technologies and features developer tools to optimize system and application performance when
running powerful creative solutions provided by the Company or by third-party developers. The Company also offers various software
solutions to meet the needs of its creative customers, many of which are described below.
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."
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Hardware Products
The Company offers a range of personal computing products including desktop and notebook personal computers, related devices and
peripherals, networking and connectivity products, and various third-
party hardware products. All of the Company's Macintosh products utilize
PowerPC® RISC-based microprocessors. The Company's entire line of Macintosh systems, excluding servers, features the Company's suite of
software for digital photography, music, and movies. Further information regarding the Company's products may be found in Part II, Item 7 of
this Form 10-K under the heading "Factors That May Affect Future Results and Financial Condition."
Power Mac
®G4
The Power Mac line of desktop personal computers is targeted at business and professional users and is designed to meet the speed, expansion