Apple 2013 Annual Report Download - page 7

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development kits for iOS and OS X. The Company’s Developer Programs also provide access to multiple
development resources including the Company’s Developer Forums, extensive technical documentation, and
sample code. The Company’s Developer Programs also provide developers with access tools and information for
submitting their apps to the App Store and the Mac App Store.
Product Support and Services
AppleCare®offers a range of support options for the Company’s customers. These include assistance that is built
into software products, printed and electronic product manuals, online support including comprehensive product
information as well as technical assistance, the AppleCare Protection Plan (“APP”) and the AppleCare+
Protection Plan (“AC+”). APP is a fee-based service that typically includes two to three years of phone support,
hardware repairs and dedicated web-based support resources. AC+ is a fee-based service available in certain
countries for iPhone and iPad. AC+ offers additional coverage under some circumstances for instances of
accidental damage in addition to the services offered by APP.
Markets and Distribution
The Company’s customers are primarily in the consumer, SMB, education, enterprise and government markets.
The Company sells its products and resells third-party products in most of its major markets directly to
consumers and SMBs through its retail and online stores and its direct sales force. The Company also employs a
variety of indirect distribution channels, such as third-party cellular network carriers, wholesalers, retailers, and
value-added resellers. During 2013, the Company’s net sales through its direct and indirect distribution channels
accounted for 30% and 70%, respectively, of total net sales.
The Company believes that sales of its innovative and differentiated products are enhanced by knowledgeable
salespersons who can convey the value of the hardware and software integration, and demonstrate the unique
solutions that are available on its products. The Company further believes providing direct contact with its
targeted customers is an effective way to demonstrate the advantages of its products over those of its competitors
and providing a high-quality sales and after-sales support experience is critical to attracting new and retaining
existing customers.
To ensure a high-quality buying experience for its products in which service and education are emphasized, the
Company continues to expand and improve its distribution capabilities by expanding the number of its own retail
stores worldwide. The Company’s retail stores are typically located at high-traffic locations in quality shopping
malls and urban shopping districts. By operating its own stores and locating them in desirable high-traffic
locations the Company is better positioned to ensure a high quality customer buying experience and attract new
customers. The stores are designed to simplify and enhance the presentation and marketing of the Company’s
products and related solutions. The retail stores employ experienced and knowledgeable personnel who provide
product advice, service and training and offer a wide selection of third-party hardware, software, and other
accessories and peripherals that complement the Company’s products.
The Company has also invested in programs to enhance reseller sales by placing high quality Apple fixtures,
merchandising materials and other resources within selected third-party reseller locations. Through the Apple
Premium Reseller Program, certain third-party resellers focus on the Apple platform by providing a high level of
product expertise, integration and support services.
The Company is committed to delivering solutions to help educators teach and students learn. The Company
believes effective integration of technology into classroom instruction can result in higher levels of student
achievement and has designed a range of products, services and programs to address the needs of education
customers. The Company also supports mobile learning and real-time distribution of, and access to, education
related materials through iTunes U®, a platform that allows students and teachers to share and distribute
educational media online. The Company sells its products to the education market through its direct sales force,
select third-party resellers and its online and retail stores.
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