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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
Company Background
Apple Inc. and its wholly-owned subsidiaries (collectively “Apple” or the “Company”)
designs, manufactures and markets a range of personal
computers, mobile communication and media devices, and portable digital music players, and sells a variety of related software, services,
peripherals, networking solutions, and third-party digital content and applications. The Company’
s products and services include Macintosh
(“Mac”)
computers, iPhone, iPad, iPod, Apple TV, Xserve, a portfolio of consumer and professional software applications, the Mac OS X and
iOS operating systems, third-
party digital content and applications through the iTunes Store, and a variety of accessory, service and support
offerings. The Company sells its products worldwide through its retail stores, online stores, and direct sales force and third-
party cellular
network carriers, wholesalers, retailers, and value-added resellers. In addition, the Company sells a variety of third-
party Mac, iPhone, iPad and
iPod compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and
peripherals, through its online and retail stores. The Company sells to consumer, small and mid-sized business (“SMB”),
education, enterprise,
government and creative markets. 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. The Company is a California
corporation founded in 1977.
Business Strategy
The Company is committed to bringing the best user experience to its customers 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 systems, 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 conjunction with its strategy, the Company continues to build and host a robust
platform for the discovery and delivery of third-
party digital content and applications through the iTunes Store. The iTunes Store includes the
App Store and iBookstore, which allow customers to discover and download third-
party applications and books through either a Mac or
Windows-
based computer or wirelessly through an iPhone, iPad or iPod touch. The Company also works to support a community for the
development of third-party software and hardware products and digital content that complement the Company’
s offerings. Additionally, the
Company’s strategy includes expanding its distribution to effectively reach more customers and provide them with a high-quality sales and post-
sales support experience. The Company is therefore uniquely positioned to offer superior and well-
integrated digital lifestyle and productivity
solutions.
1
Item 1.
Business