Apple 2004 Annual Report Download - page 59

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Unanticipated changes in the Company's tax rates could affect its future results.
The Company's future effective tax rates could be favorably or unfavorably affected by unanticipated changes in the mix of earnings in countries
with differing statutory tax rates, changes in the valuation of the Company's deferred tax assets and liabilities, or by changes in tax laws or their
interpretation. In addition, the Company is subject to the continuous examination of its income tax returns by the Internal Revenue Service and
other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the
adequacy of its provision for income taxes. There can be no assurance that the outcomes from these continuous examinations will not have an
adverse effect on the Company's operating results and financial condition.
The Company's stock price may be volatile.
The Company's stock has at times experienced substantial price volatility as a result of variations between its actual and anticipated financial
results and as a result of announcements by the Company and its competitors. The stock market has experienced extreme price and volume
fluctuations that have affected the market price of many technology companies in ways that have been unrelated to the operating performance of
these companies. These factors, including lack of positive performance in the Company's stock price, as well as general economic and political
conditions and investors' concerns regarding the credibility of corporate financial reporting and integrity of financial markets, may materially
adversely affect the market price of the Company's stock in the future. In addition, increases in the Company's stock price may result in greater
dilution of earnings per share.
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