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Business Organization
The Company manages its business primarily on a geographic basis. In 2015, the Company changed its reportable operating segments
as management began reporting business performance and making decisions primarily on a geographic basis, including the results of its
retail stores in each respective geographic segment. Accordingly, the Company’s reportable operating segments consist of the Americas,
Europe, Greater China, Japan and Rest of Asia Pacific. 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 those Asian countries not included in the Company’s other
reportable operating segments. Although each reportable operating segment provides similar hardware and software products and similar
services, they are managed separately to better align with the location of the Company’s customers and distribution partners and the
unique market dynamics of each geographic region. Further information regarding the Company’s reportable 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 based on its iOS operating system. iPhone includes Siri®, a voice activated intelligent
assistant, and Apple Pay and Touch ID™ on qualifying devices. In September 2015, the Company introduced iPhone 6s and 6s Plus,
featuring 3D Touch, which senses force to access features and interact with content and apps. iPhone works with the iTunes Store, App
Store and iBooks Store for purchasing, organizing and playing digital content and apps. iPhone is compatible with both Mac and Windows
personal computers and Apple’s iCloud services, which provide synchronization across users’ devices.
iPad
iPad is the Company’s line of multi-purpose tablets based on its iOS operating system, which includes iPad Air®and iPad mini™. iPad
includes Siri and also includes Touch ID on qualifying devices. In September 2015, the Company announced the new iPad Pro™,
featuring a 12.9-inch Retina®display, which is expected to be available in November 2015. iPad works with the iTunes Store, App Store
and iBooks Store for purchasing, organizing and playing digital content and apps. iPad is compatible with both Mac and Windows
personal computers and Apple’s iCloud services.
Mac
Mac is the Company’s line of desktop and portable personal computers based on its OS X operating system. The Company’s desktop
computers include iMac®, 21.5” iMac with Retina 4K Display, 27” iMac with Retina 5K Display, Mac Pro®and Mac mini. The Company’s
portable computers include MacBook®, MacBook Air®, MacBook Pro®and MacBook Pro with Retina display.
Operating System Software
iOS
iOS is the Company’s Multi-Touch™ operating system that serves as the foundation for iOS devices. Devices running iOS are compatible
with both Mac and Windows personal computers and Apple’s iCloud services. In September 2015, the Company released iOS 9, which
provides more search abilities and improved Siri features. iOS 9 also introduced new multitasking features designed specifically for iPad,
including Slide Over and Split View, which allow users to work with two apps simultaneously, and Picture-in-Picture that allows users to
watch a video while using another application.
OS X
OS X is the Company’s Mac operating system and is built on an open-source UNIX-based foundation and provides an intuitive and
integrated computer experience. Support for iCloud is built into OS X so users can access content and information from Mac, iOS devices
and other supported devices and access downloaded content and apps from the iTunes Store. OS X El Capitan, released in September
2015, is the 12th major release of OS X and incorporates additional window management features, including Split View and the new
Spaces Bar in Mission Control®, which provides users an intuitive way to group applications.
Apple Inc. | 2015 Form 10-K | 2