Apple 2004 Annual Report Download - page 8

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FireWire® 400 ports, an optional internal Bluetooth module, a built-in antenna and card slot to support an optional AirPort Extreme Card for 54
Mbps 802.11g wireless networking, and also includes built-in Ethernet (10/100BASE-T) and a 56K V.92 modem.
eMac™
The eMac, which is targeted primarily at the Company's education and consumer customers, features a PowerPC G4 processor, a high resolution
17-inch flat cathode ray tube display, and preserves the all-in-one compact design of the original iMac favored by many of the Company's
education and consumer customers. In April 2004, the Company updated its eMac, which now has a suggested retail price starting at $799 and is
available with a SuperDrive for a suggested retail price starting at $999. The eMac offers PowerPC G4 processors running at up to 1.25 GHz,
333 MHz DDR memory, ATI Radeon graphics and USB 2.0 connectivity to peripherals.
iBook®
The iBook is designed to meet the portable computing needs of education and consumer users. In October 2004, the Company upgraded its
iBook® G4 line to include faster PowerPC G4 processors running up to 1.33 GHz, built-in AirPort Extreme 54 Mpbs 802.11g wireless
networking and an available slot-load SuperDrive. The 12-inch model features a 1.2 GHz PowerPC G4 processor and a slot-load Combo drive,
while the 14-inch models include a 1.33GHz G4 processor and either a Combo or SuperDrive optical drive. All iBook G4 models offer a full
complement of I/O ports including FireWire 400, USB 2.0, a built-in 56K v.92 modem and Ethernet (10/100BASE-T), as well as an optional
internal wireless Bluetooth module, for connectivity to a wide range of peripherals.
Music Products and Services
The Company offers its iPod® line of digital music players and related accessories to Macintosh and Windows users. The Company also
provides an online service to distribute third-party music and audio books through its iTunes® Music Store. Net sales of iPods and other music
products and services generated year-over-year revenue growth of 316% and accounted for 19% of the Company's total net sales in fiscal 2004.
iPod ®
In July 2004, the Company introduced the fourth generation of the iPod, the Company's portable digital music player, featuring Apple's patent
pending click wheel, which combines a touch-sensitive wheel with five push buttons for one handed navigation, and up to 12 hours of battery
life. The iPod features Apple's patent pending Auto-Sync technology that automatically downloads an entire digital music library onto the iPod
and keeps it up-to-date whenever it is plugged into a Macintosh or Windows computer using FireWire or USB. The iPod also features Shuffle
Songs, which randomly plays songs in a selected playlist or across the entire library. All iPods work with Apple's iTunes digital music
management software on either a Macintosh or Windows computer. The iPod is available in 20GB and 40GB models.
The iPod's functionality extends beyond playing music and listening to audio books. 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 directly from certain digital cameras. Along with the iPod, the Company has
developed a seamless end-to-end music solution with the Company's iTunes software and the iTunes Music Store ® , a service that consumers
may use to purchase third-party music and audio books over the Internet.
The Company has entered into a strategic alliance with Hewlett-Packard Company (HP), which provides for a HP-branded digital music player
based on the iPod, the preinstallation of iTunes software on HP's consumer PCs and notebooks and access to the iTunes Music Store. The
Company has also entered into an alliance with BMW Group for the BMW iPod Adapter, a device that offers seamless integration of the iPod
and certain BMW automobiles in North America. In addition, the Company formed an alliance with
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