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Business Organization
The Company manages its business primarily on a geographic basis. Accordingly, the Company determined its
reportable operating segments, which are generally based on the nature and location of its customers, to be the
Americas, Europe, Japan, Greater China, Rest of Asia Pacific and Retail. The Americas segment includes both
North and South America. The Europe segment includes European countries, as well as India, the Middle East
and Africa. The Greater China segment includes China, Hong Kong and Taiwan. The Rest of Asia Pacific
segment includes Australia and Asian countries, other than those countries included in the Company’s other
operating segments. The Retail segment operates Apple retail stores in 13 countries, including the U.S. Each
operating segment provides similar hardware and software products and similar services. The results of the
Company’s geographic segments do not include results of the Retail segment. Further information regarding the
Company’s operating segments may be found in Part II, Item 7 of this Form 10-K under the subheading
“Segment Operating Performance,” and in Part II, Item 8 of this Form 10-K in the Notes to Consolidated
Financial Statements in Note 11, “Segment Information and Geographic Data.”
Products
iPhone
iPhone is the Company’s line of smartphones that combines a phone, music player, and internet device in one
product, and is based on Apple’s iOS Multi-Touch™ operating system. iPhone has an integrated photo and video
camera and photo library app, and on qualifying devices, also includes Siri®, a voice activated intelligent
assistant. iPhone works with the iTunes Store, the App Store and iBooks Store for purchasing, organizing and
playing music, movies, TV shows, podcasts, books, and apps. In addition to apps delivered with iOS, beginning
in September 2013, free downloads of iPhoto®, iMovie®and iWork®apps for iOS became available with all new
iPhones. iPhone is compatible with both Mac and Windows personal computers and Apple’s iCloud services
which provide synchronization of mail, contacts, calendars, apps, music, photos, documents, and more across
users’ devices. The latest versions, introduced in September 2013, are iPhone 5c and iPhone 5s.
iPad
iPad and iPad mini™ are the Company’s line of multi-purpose tablets based on Apple’s iOS Multi-Touch
operating system. iPad has an integrated photo and video camera and photo library app, and on qualifying
devices, also includes Siri. iPad works with the iTunes Store, the iBooks Store, and the App Store for purchasing
and playing music, movies, TV shows, podcasts, books, and apps. In addition to apps delivered with iOS for
qualifying devices, beginning in September 2013, iPhoto, iMovie and iWork apps for iOS became available as
free downloads with all new iPads. iPad is compatible with both Mac and Windows personal computers and
Apple’s iCloud services. In October 2013, the Company announced iPad Air™, its fifth generation iPad, and
iPad mini with Retina®display.
Mac
Mac is the Company’s line of desktop and portable personal computers. Macs feature Intel microprocessors, the
OS X operating system and include Mail, Safari web browser, Messages, Calendars, Reminders, Contacts and the
iLife®suite of software apps. The Company’s desktop computers include iMac®, Mac Pro®and Mac mini. The
Company’s portable computers include MacBook Pro®and MacBook Air®. Beginning in October 2013, the
Company’s iWork productivity suite of apps for OS X became available as free downloads with all new Macs.
iPod
The Company’s iPod line of portable digital music and media players includes iPod touch, iPod nano®, iPod
shuffle®and iPod classic®. All iPods work with iTunes to purchase and synchronize content. iPod touch, based
on the Company’s iOS Multi-Touch operating system, is a flash-memory-based iPod with an integrated photo
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