Apple 2004 Annual Report Download - page 19

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suppliers, can be adversely affected by foreign currency exchange rate fluctuations and by international trade regulations, including tariffs and
antidumping penalties.
Information regarding financial data by geographic segment is set forth in Part II, Item 8 of this Form 10-K in the Notes to Consolidated
Financial Statements at Note 11, "Segment Information and Geographic Data."
Seasonal Business
The Company has historically experienced increased net sales in its first and fourth fiscal quarters, compared to other quarters in its fiscal year,
due to seasonal demand related to the holiday season and the school year, respectively. Past performance should not be considered a reliable
indicator of the Company's future net sales or financial performance.
Warranty
The Company offers a basic limited parts and labor warranty on its hardware products. The basic warranty period for hardware products is
typically one year from the date of purchase by the end-user. The Company also offers a 90-day basic warranty for Apple service parts used to
repair Apple hardware products. In addition, consumers may purchase extended service coverage on most Apple hardware products in all of the
Company's major markets.
Backlog
In the Company's experience, the actual amount of product backlog at any particular time is not a meaningful indication of its future business
prospects. In particular, backlog often increases in anticipation of or immediately following new product introductions because of over-ordering
by dealers anticipating shortages. Backlog often is reduced once dealers and customers believe they can obtain sufficient supply. Because of the
foregoing, backlog should not be considered a reliable indicator of the Company's ability to achieve any particular level of revenue or financial
performance.
Environmental Laws
Compliance with federal, state, local, and foreign laws enacted for the protection of the environment has to date had no material effect on the
Company's capital expenditures, earnings, or competitive position. In the future, these laws could have a material adverse affect on the
Company.
Production and marketing of products in certain states and countries may subject the Company to environmental and other regulations including,
in some instances, the requirement that the Company provide consumers with the ability to return to the Company product at the end of its useful
life, and place responsibility for environmentally safe disposal or recycling with the Company. Such laws and regulations have recently been
passed in several jurisdictions in which the Company operates, including various European Union member states, Japan and California. In the
future, these laws could have a material adverse affect on the Company.
Employees
As of September 25, 2004, Apple and its subsidiaries worldwide had 11,695 employees and an additional 1,731 temporary employees and
contractors.
Available Information
The Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed
pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, are available on its website at
http://www.apple.com/investor when such reports are available on the U.S. Securities and Exchange Commission (SEC) website. The public
may read and copy any materials filed by the Company with the SEC at the SEC's Public Reference Room at 450 Fifth Street, NW, Washington,
DC 20549. The public may obtain information on the operation of
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