Apple 2008 Annual Report Download - page 4

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Table of Contents
The Business section and other parts of this Annual Report on Form 10-K (“Form 10-K”) contain forward-looking statements that involve risks
and uncertainties. Many of the forward-looking statements are located in “Management’s Discussion and Analysis of Financial Condition and
Results of Operations.
” Forward-
looking statements provide current expectations of future events based on certain assumptions and include any
statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as
“anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” and similar terms. Forward-looking statements are not
guarantees of future performance and the Company
’s actual results may differ significantly from the results discussed in the forward-looking
statements. Factors that might cause such differences include, but are not limited to, those discussed in the subsection entitled “Risk Factors”
under Part I, Item 1A of this Form 10-K, which are incorporated herein by reference. The Company assumes no obligation to revise or update
any forward-looking statements for any reason, except as required by law.
PART I
Item 1. Business
Company Background
Apple Inc. and its wholly-owned subsidiaries (collectively “Apple” or the “Company”) design, manufacture, and market personal computers,
portable digital music players, and mobile communication devices and sell a variety of related software, services, peripherals, and networking
solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers,
resellers, and value-added resellers. In addition, the Company sells a variety of third-party Macintosh® (“Mac”), iPod® and iPhone™
compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and
peripherals through its online and retail stores, and digital content through the iTunes Store®. The Company sells to consumer, small and mid-
sized business (“SMB”), education, enterprise, government, and creative customers. The Company’s fiscal year is the 52 or 53-week period that
ends on the last Saturday of September. Unless otherwise stated, all information presented in this Form 10-K is based on the Company’s fiscal
calendar.
Business Strategy
The Company is committed to bringing the best personal computing, portable digital music and mobile communication experience to consumers,
students, educators, businesses, and government agencies through its innovative hardware, software, peripherals, services, and Internet offerings.
The Company’s business strategy leverages its unique ability to design and develop its own operating system, hardware, application software,
and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial
design. The Company believes continual investment in research and development is critical to the development and enhancement of innovative
products and technologies. In addition to evolving its personal computers and related solutions, the Company continues to capitalize on the
convergence of the personal computer, digital consumer electronics and mobile communications by creating and refining innovations, such as
the iPod, iPhone, iTunes Store, and Apple TV®. The Company desires to support a community for the development of third-party products that
complement the Company’s offerings through its developer programs. The Company offers various third-party software applications and
hardware accessories for Mac® computers, iPods and iPhones through its retail and online stores, as well as software applications for the iPhone
platform through its iTunes® App Store. The Company’s strategy also includes expanding its distribution network to effectively reach more of
its targeted customers and provide them with a high-quality sales and post-sales support experience.
Consumer and Small and Mid-Sized Business
The Company believes a high-quality buying experience with knowledgeable salespersons who can convey the value of the Company’
s products
and services greatly enhances its ability to attract and retain customers. The Company sells many of its products and resells certain third-party
products in most of its major markets directly to consumers and businesses through its retail and online stores. The Company has also invested in
programs to
1