Apple 2014 Annual Report Download - page 10

Business Seasonality and Product Introductions
The Company has historically experienced higher net sales in its first quarter compared to other quarters in its fiscal year due in
part to seasonal holiday demand. Additionally, new product introductions can significantly impact net sales, product costs and
operating expenses. Product introductions can also impact the Company’s net sales to its indirect distribution channels as
these channels are filled with new product inventory following a product introduction, and often, channel inventory of a
particular product declines as the next related major product launch approaches. Net sales can also be affected when
consumers and distributors anticipate a product introduction. However, neither historical seasonal patterns nor historical
patterns of product introductions should be considered reliable indicators of the Company’s future pattern of product
introductions, future net sales or financial performance.
Warranty
The Company offers a limited parts and labor warranty on most of its hardware products. The basic warranty period is typically
one year from the date of purchase by the original end-user. The Company also offers a 90-day basic warranty for its service
parts used to repair the Company’s hardware products. In certain jurisdictions, local law requires that manufacturers guarantee
their products for a period prescribed by statute, typically at least two years. In addition, where available, consumers may
purchase APP or AC+, which extends service coverage on many of the Company’s hardware products.
Backlog
In the Company’s experience, the actual amount of product backlog at any particular time is not a meaningful indication of its
future business prospects. In particular, backlog often increases immediately following new product introductions as
customers anticipate shortages. Backlog is often reduced once customers believe they can obtain sufficient supply. Because
of the foregoing, backlog should not be considered a reliable indicator of the Company’s ability to achieve any particular level of
revenue or financial performance.
Employees
As of September 27, 2014, the Company had approximately 92,600 full-time equivalent employees and an additional 4,400
full-time equivalent temporary employees and contractors. Approximately 46,200 of the total full-time equivalent employees
worked in the Company’s Retail segment.
Available Information
The Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and
amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), are filed with the Securities and Exchange Commission (the “SEC”). The Company is subject to the
informational requirements of the Exchange Act and files or furnishes reports, proxy statements and other information with the
SEC. Such reports and other information filed by the Company with the SEC are available free of charge on the Company’s
website at investor.apple.com/sec.cfm when such reports are available on the SEC’s website. The public may read and copy
any materials filed by the Company with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Room 1580,
Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC
at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements and other
information regarding issuers that file electronically with the SEC at www.sec.gov. The contents of these websites are not
incorporated into this filing. Further, the Company’s references to the URLs for these websites are intended to be inactive
textual references only.
Apple Inc. | 2014 Form 10-K | 8