Apple 2003 Annual Report Download - page 6

The iBook is designed to meet the portable computing needs of education and consumer users. The current iBooks, upgraded in October 2003,
feature PowerPC G4 processors and either a 12-inch or 14-inch display. These systems offer advanced connectivity with AirPort Extreme and
Bluetooth, and certain models include 256 MB of DDR memory and slot-
load Combo drives for burning CDs and watching DVDs. Each iBook
is outfitted with a sleek polycarbonate plastic enclosure and weighs as little as 4.9 pounds.
Peripheral Products
The Company sells certain associated Apple-branded computer hardware peripherals, including iPod™ digital music players, iSight™ digital
video cameras, and 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, and various other computing products
and supplies.
iPod™
The Company's newest iPod portable music player, compatible with both the Macintosh and Windows platforms, is smaller and lighter than
previous versions and is available in three models with storage capacity of either 10GB, 20GB, or 40GB; the latter holding up to 10,000 songs.
In addition to MP3, iPod now supports the Advanced Audio Coding (AAC) audio format. The new iPod models also feature solid-state
interfaces and the 20GB and 40GB models include the iPod Dock, which facilitates fast and easy connection to a computer or stereo. The
iPod's functionality extends well beyond playing music. Other key capabilities include data storage, calendar and contact information utility,
and a selection of games. With the addition of third-party iPod peripherals, the capabilities of certain iPods can be enhanced to include voice
recording and photo downloading from certain digital cameras. Along with the iPod, the Company has developed a seamless end-to-end music
solution with the Company's iTunes® digital music management software and the iTunes Music Store, a service that consumers may use to
purchase music over the Internet. Further discussion on these related music offerings may be found below under the headings "Software
Products and Computer Technologies" and "Internet Software, Integration, and Services."
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iSight™
The Company introduced the iSight digital video camera and the beta version of its iChat™ AV software application in June 2003. Together
they enable high-quality audio and videoconferences between two Macintosh systems over broadband connections. iSight is a small, portable
aluminum alloy camera with all audio, video and power provided by a single FireWire cable. iSight features a custom designed lens with auto-
focus and a high-end CCD sensor to provide high-resolution images and full-motion video at up to 30 frames per second. iSight includes an
integrated microphone that suppresses ambient noise for clear digital audio. With its on-board processor, iSight automatically adjusts color,
white balance, sharpness and contrast to provide high-quality images with accurate color reproduction in most lighting conditions. iSight is
designed to be center-mounted on the top of a computer screen and uses its integrated tilt and rotate mechanism to easily position the camera
for natural, face-to-face video conferencing.
Displays
The Company's all-digital, active-matrix LCD flat panel displays, including the 23-inch Cinema HD Display®, 20-inch Apple Cinema
Display® and the 17-inch Apple Studio Display®, produce flicker-free images with twice the brightness, sharpness, and contrast ratio of a
typical CRT display.
Software Products and Computer Technologies
The Company offers a range of software products for education, creative, consumer and business customers, including Mac OS X, the
Company's proprietary operating system software for the Macintosh; server software and related solutions; professional application software;
and consumer, education and business oriented application software.
Operating System 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.