Apple 2004 Annual Report Download - page 9

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Founder Technology Group Corporation, a supplier of PCs to the Chinese market, that provides for the preinstallation of iTunes on all Founder
Technology Windows-based PCs. A similar alliance was formed with Synnex Technology International Corporation, a Taiwan-
based wholesaler
and distributor of personal computers, for the preinstallation of iTunes on its Windows-based laptop and desktop PCs.
In October 2004, the Company introduced the iPod U2 Special Edition as part of a strategic alliance with the musical band, U2, and Universal
Music Group. The U2 iPod holds up to 5,000 songs, features a black enclosure with a red click wheel and custom engraving of U2 band member
signatures.
iPod® photo
In October 2004, the Company introduced iPod®
photo. The iPod photo holds digital photos alongside the music library and displays them on its
high-
resolution color screen, which allows users to scroll through the photo library almost instantly using iPod's patent pending click wheel. iPod
photo can auto sync music and photos with a Macintosh or Windows-based computer. The iPod photo also allows users to simultaneously play
music and view photo slideshows on the iPod, as well as on televisions and projectors. The iPod photo comes in 40GB or 60GB models and has
an extended battery life that gives users up to 15 hours of music playback or up to 5 hours of slideshows. The iPod photo can hold up to 25,000
digital photos or 15,000 digital songs.
iPod ® mini
In January 2004, the Company introduced the iPod mini. Smaller and lighter than the iPod, the iPod mini has storage capacity of 4GB and holds
up to 1,000 songs, utilizes the patent pending click wheel and is encased in an anodized aluminum case available in a selection of five colors:
silver, gold, pink, blue or green. The iPod mini retains the same user interface as the iPod and works seamlessly with the Company's iTunes
Music Store® and the iTunes software for buying, managing and listening to digital music on either a Macintosh or Windows-based computer.
iTunes Music Store ®
The Company's iTunes Music Store, available for both Windows-based and Macintosh computers, is an online music download store that allows
customers to find, purchase, and download third-party digital music and audio books. Users can easily search the contents of the music store
catalog to locate works by title, artist, or album, or browse the entire contents of the store by genre and artist. Users can also listen to a free 30-
second preview of any song in the store. Since April 2003, the iTunes Music Store has been available to U.S. customers. A similar store became
available in the U.K., France and Germany in June 2004 and was followed by the October 2004 launch of an English language music store
covering nine additional European countries. The Company has also announced its intention to open an iTunes Music Store in Canada during
fiscal 2005.
The iTunes Music Store is fully integrated directly into the latest version of the iTunes software, allowing customers to preview, purchase,
download, organize, share, and transfer their digital music to an iPod using a single software application. Further discussion on the iTunes
software may be found below under the heading "Software Products and Computer Technologies." Requiring no subscription fee, the iTunes
Music Store with iTunes software offers customers a broad range of personal rights to the third-party content they have purchased, including
playing songs on up to five personal computers, burning a single song onto CDs an unlimited number of times, burning the same playlist up to
seven times, listening to their music on an unlimited number of iPods, and using songs in certain media applications such as iPhoto, iMovie, and
iDVD. The iTunes Music Store also features availability of audio books for purchase directly from the iTunes Music Store.
Additional features currently available within the U.S. iTunes Music Store include gift certificates that can be sent via e-mail, prepaid gift cards,
an "allowance" feature that enables users to automatically deposit
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