Apple 2014 Annual Report Download - page 3

This Annual Report on Form 10-K (“Form 10-K”) contains forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Many of the forward-looking statements are
located in Part II, Item 7 of this Form 10-K under the heading “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 “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “will,”
“would,” “could,” “can,” “may,” 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 Part I, Item 1A of this Form 10-K under the
heading “Risk Factors,” which are incorporated herein by reference. All information presented herein is based on the
Company’s fiscal calendar. Unless otherwise stated, references to particular years, quarters, months or periods refer to the
Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. Each of the
terms the “Company” and “Apple” as used herein refers collectively to Apple Inc. and its wholly-owned subsidiaries, unless
otherwise stated. The Company assumes no obligation to revise or update any forward-looking statements for any reason,
except as required by law.
PART I
Item 1. Business
Company Background
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, accessories, 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 OS X®operating systems, iCloud®, and a
variety of accessory, service and support offerings. In September 2014, the Company announced Apple Watch™, which is
expected to be available in early calendar year 2015, and Apple Pay™, which became available in the U.S. in October 2014.
The Company also sells and delivers digital content and applications through the iTunes Store®, App Store™, iBooks Store™
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, and various
accessories, 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. 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
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 products and solutions with innovative design, superior
ease-of-use and seamless integration. 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 iBooks Store allow customers to discover and download applications and books through either a Mac or
Windows-based computer or through iPhone, iPad and iPod touch®devices (“iOS devices”). The Company’s Mac App Store
allows customers to easily discover, download and install Mac applications. 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 believes a high-quality buying experience with knowledgeable salespersons who can convey the value of the
Company’s products and services greatly enhances its ability to attract and retain customers. Therefore, the Company’s
strategy also includes building and expanding its own retail and online stores and its third-party distribution network to
effectively reach more customers and provide them with a high-quality sales and post-sales support experience. The Company
believes continual investment in research and development (“R&D”), marketing and advertising is critical to the development
and sale of innovative products and technologies.
Apple Inc. | 2014 Form 10-K | 1