Apple 2006 Annual Report Download - page 10

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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 creative solutions provided by
the Company or third-party developers.
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 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 and website creation.
Macintosh
® Computers
In June 2005, the Company announced its plan to begin using Intel microprocessors in its computers. During 2006, the Company introduced
new Intel-based models of the MacBook™ Pro, MacBook, Mac® Pro, iMac®, and Mac mini computers. All Intel-based Macintosh systems
feature a fully native version of Mac OS X Version 10.4 Tiger, including the Rosetta™ translation technology, which allows most PowerPC-
based Macintosh applications to run on Intel-based Macintosh computers. The Company’s transition to Intel microprocessors for Macintosh
systems was completed in August 2006, and its transition for Xserve® was completed in November 2006. There are potential risks and
uncertainties associated with the transition to Intel microprocessors, which are further discussed in Item 1A of this 10-K under the heading
“Risk Factors.”
MacBook
™ Pro
The MacBook Pro family of notebook computers is designed for professionals and advanced consumer users. Introduced in January 2006, the
MacBook Pro includes either a 15-inch or 17-inch widescreen display, a built-in iSight video camera, Front Row with the Apple Remote, and
the MagSafe™ power adapter. Current MacBook Pro models include Intel Core 2 Duo processors at 2.16GHz or 2.33GHz, ATI Mobility
Radeon X1600 graphics, 667MHz DDR2 main memory, a Serial ATA hard drive, and a slot-loading double-layer SuperDrive™. Every
MacBook Pro features a 1-inch thin aluminum enclosure and includes AirPort Extreme wireless networking, Bluetooth 2.0+EDR, Gigabit
Ethernet, two or three USB 2.0 ports, FireWire 400 and 800 ports, combination analog and optical digital audio input and output ports, a full-
sized DVI video-out port, an ExpressCard/34 slot, scrolling trackpad, and backlit keyboard.
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