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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 Watch®, Apple TV®, a portfolio of
consumer and professional software applications, iOS, OS X®and watchOS™ operating systems, iCloud®, Apple Pay®and a variety of
accessory, service and support offerings. In September 2015, the Company announced a new Apple TV, tvOS™ operating system and
Apple TV App Store®, which are expected to be available by the end of October 2015. The Company sells and delivers digital content and
applications through the iTunes Store®, App Store, Mac App Store, iBooks Store™ and Apple Music™ (collectively “Internet Services”).
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 Apple
compatible products, including application software and various accessories through its online and retail stores. The Company sells to
consumers, small and mid-sized businesses 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 digital content and
applications through its Internet Services, which allows customers to discover and download digital content, iOS, Mac and Apple Watch
applications, and books through either a Mac or Windows-based computer or through iPhone, iPad and iPod touch®devices (“iOS
devices”) and Apple Watch. 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 ongoing investment in research and development (“R&D”), marketing and advertising is critical to the
development and sale of innovative products and technologies.
Apple Inc. | 2015 Form 10-K | 1