Apple 2005 Annual Report Download - page 5

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of student thought and ideas. The Company creates solutions that enable new modes of curriculum delivery, better ways of conducting
research, and opportunities for professional development of faculty, students, and staff. The Company has designed a range of products and
services to help schools maximize their investments in technology. This is manifested in many of the Company’s products and services that are
designed to meet the needs of education customers. These products and services include the eMac™, iMac™, and the iBook®, video creation
and editing solutions, wireless networking, student information systems, high-quality curriculum and professional development solutions, and
one-to-one (1:1) learning solutions (primarily in K-12). 1:1 learning solutions typically consist of iBook portable computers for every student
and teacher along with a wireless network connected to a central server .
Creative Professionals
Creative professionals constitute one of the Company’s most important markets for both hardware and software products. This market is also
important to many third-party developers who provide Macintosh-compatible hardware and software solutions. Creative customers utilize the
Company’s products for a variety of creative activities including digital video and film production and editing; digital video and film special
effects, compositing, and titling; digital still photography and workflow management; graphic design, publishing, and print production; music
creation and production; audio production and sound design; and web design, development, and administration.
The Company designs its high-end hardware solutions, including servers, desktops, and portable Macintosh systems, to incorporate the power,
expandability, and features desired by creative professionals. The Company’
s operating system, Mac OS X, incorporates powerful graphics and
audio technologies and features developer tools to optimize system and application performance when running powerful creative solutions
provided by the Company or third-party developers. The Company also offers various software solutions to meet the needs of its creative
customers.
Business Organization
The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments are comprised of the
Americas, Europe, Japan, and Retail. The Americas, Europe, and Japan reportable segments do not include activities related to the Retail
segment. The Americas segment includes both North and South America. The Europe segment includes European countries as well as the
Middle East and Africa. The Retail segment currently operates Apple-owned retail stores in the U.S., Canada, Japan, and the U.K. Other
operating segments include Asia-Pacific, which includes Australia and Asia except for Japan, and the Company’s subsidiary, FileMaker, Inc.
Each reportable geographic operating segment provides similar hardware and software products and similar services. Further information
regarding the Company’s operating segments may be found in Part II, Item 7 of this Form 10-K under the heading “Segment Operating
Performance,” and 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.”
Hardware Products
The Company offers a range of personal computing products including desktop and notebook computers, server and storage products, related
devices and peripherals, and various third-party hardware products. The Company’s entire line of Macintosh® systems, excluding servers and
storage systems, features the Company’s Mac OS® X Version 10.4 Tiger™ and iLife® suite of software for digital photography, music,
movies, and music creation.
Macintosh
® Computers
In June 2005, the Company announced its plan to begin using Intel microprocessors in its Macintosh computers. The Company plans to begin
shipping certain models with Intel microprocessors by June 2006
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