Apple 2015 Annual Report Download - page 9

While some Mac computers are manufactured in the U.S. and Ireland, substantially all of the Company’s hardware products are currently
manufactured by outsourcing partners that are located primarily in Asia. The supply and manufacture of a number of components is
performed by sole-sourced outsourcing partners in the U.S., Asia and Europe. Margins on sales of the Company’s products in foreign
countries and on sales of products that include components obtained from foreign suppliers, can be adversely affected by foreign
currency exchange rate fluctuations and by international trade regulations, including tariffs and antidumping penalties. Information
regarding concentration in the available sources of supply of materials and products is set forth in Part II, Item 8 of this Form 10-K in the
Notes to Consolidated Financial Statements in Note 10, “Commitments and Contingencies.”
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 26, 2015, the Company had approximately 110,000 full-time equivalent employees.
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 website URLs are intended to be inactive textual references only.
Apple Inc. | 2015 Form 10-K | 7