Apple 2002 Annual Report Download - page 6

with carrying cases, wired remotes, and feature a solid-state touch wheel control.
Peripheral Products
The Company sells certain associated Apple-branded computer hardware peripherals, including a range of high quality flat panel TFT active-
matrix digital color displays. The Company also sells a variety of third-party Macintosh-compatible hardware products directly to end users
through both its retail and online stores, including computer printers and printing supplies, storage devices, computer memory, digital video
and still cameras, personal digital assistants, digital music players and related accessories, and various other computing products and supplies.
Software Products and Computer Technologies
Operating System and Server Software
During 2001, the Company introduced the first customer release of its new client operating system, Mac OS® X, and its first significant
upgrade, Mac OS X version 10.1. At its introduction, Mac OS X offered advanced functionality built on an open-source UNIX-based
foundation and incorporated the most fundamental changes in both core technology and user interface design made by the Company to the Mac
OS in a single upgrade since the original introduction of the Macintosh in 1984. Mac OS X features memory protection, pre-emptive multi-
tasking, and symmetric multiprocessing. Mac OS X includes Apple's Quartz™ 2D graphics engine (based on the Internet-standard Portable
Document Format) for enhanced graphics and broad font support, OpenGL for enhanced 3D graphics and gaming, and Apple's new user
interface named "Aqua ® ," which combines superior ease-of-use with new functionality. In January 2002, the Company made Mac OS X the
default operating system on all new Macintosh systems. Mac OS X allows users to run Mac OS 9 applications natively in the Classic
compatibility environment in
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Mac OS X. The Company also develops and distributes extensions to the Macintosh system software including utilities, languages, and
developer tools.
In August 2002, the Company released Mac OS X version 10.2 (code named "Jaguar"), the current release of Mac OS X. Jaguar includes a new
Mail application designed to manage junk mail; iChat™, an AIM-compatible instant messenger; a system-wide Address Book; Inkwell™
handwriting recognition; improved Universal Access; an enhanced Finder; an updated version of QuickTime®, the Company's multimedia
software for playing, interacting with or viewing video, audio, and graphics files; and an updated version of Sherlock®, the Company's
advanced Internet search engine. Jaguar also features accelerated graphics performance, increased compatibility with Windows networks, and a
UNIX-based foundation with enhancements including FreeBSD 4.4 and GCC 3.1-based developer tools.
Mac OS X server software was initially introduced in May 2001. The current version of Mac OS X Server, Mac OS X Server version 10.2
(code named "Jaguar Server") was released in August 2002. Jaguar Server is a UNIX-based operating system designed for superior
performance and reliability. It delivers high-
performance services for Internet and web serving, filing, printing, and networking services needed
to manage a network of Mac, UNIX, and Windows clients. Based on the Mach 3.0 microkernel and the BSD 4.4 operating system, Jaguar
Server is a modern UNIX-based server built on open standards. It provides performance and stability through full pre-emptive multi-tasking,
symmetric multiprocessing, protected memory, advanced virtual memory, software RAID support, and support for networking and security
standards. Jaguar Server also includes Apple's Open Directory architecture for centralized management of network resources using LDAPv3
directory services and a suite of built-in, standards-based Internet services like an optimized Apache web server for high-performance hosting
of secure dynamic web sites and QuickTime Streaming Server and QuickTime Broadcaster for streaming live events over the Internet. Jaguar
Server also comes with a flexible mail server that supports POP and secure IMAP, as well as WebMail for browser-based email access.
Further information regarding the introduction of and updates to Mac OS X and Mac OS X Server 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."
Professional Application Software
Final Cut Pro® 3 is a video authoring application designed to meet the demanding needs of the professional video editing environment by
combining in a single software package professional-quality video editing and compositing, real-time effects, professional color correction
tools and an innovative interface that seamlessly integrates editing, compositing and effects tools for an efficient and powerful media creation
workflow. Final Cut Pro is especially popular among broadcast professionals because it allows them to increase their programming output at a
fraction of the cost of traditional editing systems. Post production facilities use Final Cut Pro for the production of a wide range of projects
including feature-length films, primetime television shows, news broadcasts, documentaries, trailers and commercials. Final Cut Pro was
honored by the Academy of Television Arts and Sciences with a 2002 Primetime Emmy Engineering Award for its impact on the television
industry.
Shake® is the Company's industry-leading compositing and visual effects software designed for large format film and video productions.
Shake features a fast rendering engine, an extensive and mature compositing toolset, two industry
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standard keyers, a complete suite of color