Apple 2003 Annual Report Download - page 3

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. 32
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes 12 No 32
The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant, as of March 29, 2003, was
approximately $4,479,669,616 based upon the closing price reported for such date on the NASDAQ National Market. For purposes of this
disclosure, shares of Common Stock held by persons who hold more than 5% of the outstanding shares of Common Stock and shares held by
executive officers and directors of the registrant have been excluded because such persons may be deemed to be affiliates. This determination
of executive officer or affiliate status is not necessarily a conclusive determination for other purposes.
367,734,960 shares of Common Stock Issued and Outstanding as of December 5, 2003
PART I
The Business section and other parts of this Annual Report on Form 10-K ("Form 10-K") contain forward-
looking statements that involve risks
and uncertainties. Many of the forward-looking statements are located in "Management's Discussion and Analysis of Financial Condition and
Results of Operations." Forward
-looking statements can also be identified by words such as "anticipates," "expects," "believes," "plans,"
"predicts," and similar terms. Forward-looking statements are not guarantees of future performance and 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 assumes no obligation to revise or update any forward-
looking statements for any reason, except as required by
law.
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 software, peripherals and personal computing and communicating
solutions. The Company's products include the Macintosh® line of desktop and notebook computers, the Mac OS® X operating system, the
iPod™ digital music player, and a portfolio of software and peripheral products for education, creative, consumer and business customers. The
Company sells its products through its online stores, direct sales force, third-party wholesalers and resellers, and its own retail stores. 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.
Business Strategy
Digital Hub
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, peripherals and Internet offerings, including .Mac™ and the iTunes®
Music Store™. The Company believes that personal computing has entered a new era in which the personal computer functions for both
professionals and consumers as the digital hub for advanced new digital devices such as the Company's iPod digital music players, personal
digital assistants, cellular phones, 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 personal computer industry that designs and manufactures the entire personal
computer—from the hardware and operating system to sophisticated applications. Apple provides innovative industrial design, intuitive ease-
of-use, and built-in networking, graphics, and multimedia capabilities. Thus, the Company is uniquely positioned to offer digital hub products
and solutions.
Apple develops products and technologies that adhere to many industry standards in order to provide an optimized user experience through
interoperability with peripherals and devices from other companies. Apple has played a role in the development, enhancement, promotion,
and/or use of numerous of these industry standards, many of which are discussed below.
Retail