Apple 2011 Annual Report Download - page 3

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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 mobile
communication and media devices, personal computers, 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 iPhone ,
iPad
, Mac , iPod , Apple TV , a portfolio of consumer and professional software applications, the iOS and Mac OS
X operating systems,
iCloud ,
and a variety of accessory, service and support offerings. The Company also sells and delivers digital content and applications through
the iTunes Store , App Store , iBookstore
, and Mac App Store. The Company sells its products worldwide through its retail stores, online
stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-
added resellers. In
addition, the Company sells a variety of third-
party iPhone, iPad, Mac 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
consumers, small and mid-sized businesses (“SMB”), and education, enterprise and government 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. The Company is a California corporation established in 1977.
Business Strategy
The Company is committed to bringing the best user experience to its customers through its innovative hardware, software, peripherals, and
services. 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
design. The Company believes continual investment in research and development and marketing and advertising is critical to the development
and sale of innovative products and technologies. As part of its strategy, the Company continues to expand its platform for the discovery and
delivery of third-party digital content and applications through the iTunes Store. As part of the iTunes Store, the Company’
s App Store and
iBookstore allow customers to discover and download applications and books through either a Mac or Windows-
based computer or through
“iOS devices,” namely iPhone, iPad and iPod touch .
In January 2011, the Company opened the Mac App Store to allow customers to easily
discover, download and install applications for their Macs. The Company also supports a community for the development of third-
party software
and hardware products and digital content that complement the Company’s offerings. The Company’
s strategy also includes expanding its
distribution network to effectively reach more customers and provide them with a high-quality sales and post-sales support experience.
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Item 1.
Business
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