|
Apple Computer, Inc.
(408)
996-1010
1
Infinite Loop
Cupertino, CA 95014
www.apple.com
Sales
$6.2
billion
Business Description
Apple
Computer, Inc. ("Apple" or the "Company") designs, manufactures and markets
personal computers and related software, peripherals and personal computing
and communicating solutions. The Company's products include the Macintosh®
line of desktop and notebook computers, the Mac OS® X operating system, the
iPod™ digital music player, and a portfolio of software and peripheral
products for education, creative, consumer and business customers. The
Company sells its products through its online stores, direct sales force,
third-party wholesalers and resellers, and its own retail stores. The
Company's fiscal year ends on the last Saturday of September. Unless
otherwise stated, all information presented in this Form 10-K is based on
the Company's fiscal calendar.
Business Strategy
Digital Hub
Apple is committed to bringing the best possible personal computing
experience to students, educators, creative professionals, businesses and
consumers around the world through its innovative hardware, software,
peripherals and Internet offerings, including .Mac™ and the iTunes® Music
Store™. The Company believes that personal computing has entered a new era
in which the personal computer functions for both professionals and
consumers as the digital hub for advanced new digital devices such as the
Company's iPod digital music players, personal digital assistants, cellular
phones, digital still and movie cameras, CD and DVD players, and other
electronic devices. The attributes of the personal computer, including its
ability to run complex applications, possess a high quality user interface,
contain large and relatively inexpensive storage, and easily connect to the
Internet in multiple ways and at varying speeds, can individually add value
to these devices and interconnect them as well. Apple is the only company in
the personal computer industry that designs and manufactures the entire
personal computer—from the hardware and operating system to sophisticated
applications. Apple provides innovative industrial design, intuitive
ease-of-use, and built-in networking, graphics, and multimedia capabilities.
Thus, the Company is uniquely positioned to offer digital hub products and
solutions.
Apple develops products and technologies that adhere to many industry
standards in order to provide an optimized user experience through
interoperability with peripherals and devices from other companies. Apple
has played a role in the development, enhancement, promotion, and/or use of
numerous of these industry standards, many of which are discussed below.
Hardware Products
The Company offers a range of personal computing products including desktop
and notebook personal computers, related devices and peripherals, networking
and connectivity products, and various third-party hardware products. All of
the Company's Macintosh products utilize PowerPC® RISC-based
microprocessors. The Company's entire line of Macintosh systems, excluding
servers, features the Company's suite of software for digital photography,
music, and movies.
Power Mac®
The Power Mac line of desktop personal computers is targeted at business and
professional users and is designed to meet the speed, expansion and
networking needs of the most demanding Macintosh user. Powered by the
PowerPC G5 processor, designed by IBM and Apple, and featuring up to a 1 GHz
front-side bus and the ability to address up to 8GB of memory, the current
Power Mac G5 utilizes 64-bit processing technology for advanced 64-bit
computation, while running existing 32-bit applications natively. The
PowerPC G5 processor architecture is based on a completely new execution
core that features massively parallel computation, full symmetric
multi-processing, two double precision floating point units and an optimized
Velocity Engine™. Power Mac G5 systems, encased in a professional aluminum
enclosure with computer controlled cooling for quiet operation, also include
on all models SuperDrive CD-RW/DVD-R drives, digital audio and PCI-X
expansion, and advanced input and output technologies including Gigabit
Ethernet, FireWire® and USB ports. The system also supports 54 Mbps AirPort
Extreme® wireless networking and is Bluetooth ready for wireless connections
to a host of Bluetooth-enabled peripherals. Prior to the availability of the
Power Mac G5 in August 2003, the Company's Power Mac line during most of
fiscal 2003 featured PowerPC G4 processors in all models. The Company
continues to offer a Power Macintosh G4 system with a single or dual 1.25
Ghz processor configuration.
Xserve® and Xserve RAID Storage System
Xserve, the Company's first ever rack-mount server product, was designed for
simple setup and remote management of intensive input/output (I/O)
applications such as digital video, high-resolution digital imagery, and
large databases. In February 2003, the Company upgraded its Xserve 1U rack
servers with more powerful processors, more storage capacity, and a FireWire
800 interface. At the same time, the Company introduced the Xserve RAID
Storage System, a rack storage system that holds up to 14 hot-swapable drive
modules capable of holding up to 3.5 terabytes of data. Xserve RAID
architecture combines affordable, high-capacity ATA/100 drive technology
with a Fibre Channel interface for reliable and fast data access. Xserve
RAID provides RAID level 5 throughput that supports affordable real-time
high definition (HD) 1080i video editing.
PowerBook®
The PowerBook family of portable computers is designed to meet the mobile
computing needs of professionals and advanced consumer users. The 17-inch
PowerBook G4 features a 17-inch wide-format active-matrix display, is
encased in a durable aluminum alloy enclosure, is 1-inch thick, and weighs
as little as 6.9 pounds. The 17-inch PowerBook G4 also features built-in
support for AirPort Extreme 54 Mbps 802.11g wireless networking, new
high-speed FireWire 800, a backlit keyboard with ambient light sensors, and
built-in Bluetooth for wireless connection to cell phones and other
Bluetooth equipped peripherals. The 12-inch PowerBook G4 features a 12-inch,
active-matrix display housed in a lightweight, durable aluminum alloy
enclosure weighing approximately 4.6 pounds. The 12-inch PowerBook G4
features a high-speed PowerPC G4 processor, NVIDIA graphics, built-in
Bluetooth wireless networking, and battery life of up to five hours on a
single charge.
iMac®
The iMac line of desktop computers is targeted to education and consumer
markets. The Company's iMac product line features an innovative industrial
design that incorporates an adjustable 15-inch or 17-inch thin film
transistor (TFT) active-matrix flat panel display and an ultra-compact base.
In November 2003, a new 20-inch iMac model was released. All models utilize
PowerPC G4 processors, fast 333 MHz DDR memory, NVIDIA graphics, two
FireWire 400 and three high-speed USB 2.0 ports. The iMac also offers the
latest in wireless communications with support for 54 Mbps AirPort Extreme
and Bluetooth wireless connectivity.
eMac™
The eMac, which is targeted primarily at the Company's education and
consumer customers, features a PowerPC G4 processor, a high resolution
17-inch flat cathode ray tube (CRT) display, a SuperDrive option, and
preserves the all-in-one compact design of the original iMac favored by many
of the Company's education and consumer customers.
iBook®
The iBook is designed to meet the portable computing needs of education and
consumer users. The current iBooks, upgraded in October 2003, feature
PowerPC G4 processors and either a 12-inch or 14-inch display. These systems
offer advanced connectivity with AirPort Extreme and Bluetooth, and certain
models include 256 MB of DDR memory and slot-load Combo drives for burning
CDs and watching DVDs. Each iBook is outfitted with a sleek polycarbonate
plastic enclosure and weighs as little as 4.9 pounds.
Peripheral Products
The Company sells certain associated Apple-branded computer hardware
peripherals, including iPod™ digital music players, iSight™ digital video
cameras, and a range of high quality flat panel TFT active-matrix digital
color displays. The Company also sells a variety of third-party Macintosh
compatible hardware products directly to end users through both its retail
and online stores, including computer printers and printing supplies,
storage devices, computer memory, digital video and still cameras, personal
digital assistants, and various other computing products and supplies.
iPod™
The Company's newest iPod portable music player, compatible with both the
Macintosh and Windows platforms, is smaller and lighter than previous
versions and is available in three models with storage capacity of either
10GB, 20GB, or 40GB; the latter holding up to 10,000 songs. In addition to
MP3, iPod now supports the Advanced Audio Coding (AAC) audio format. The new
iPod models also feature solid-state interfaces and the 20GB and 40GB models
include the iPod Dock, which facilitates fast and easy connection to a
computer or stereo. The iPod's functionality extends well beyond playing
music. Other key capabilities include data storage, calendar and contact
information utility, and a selection of games. With the addition of
third-party iPod peripherals, the capabilities of certain iPods can be
enhanced to include voice recording and photo downloading from certain
digital cameras. Along with the iPod, the Company has developed a seamless
end-to-end music solution with the Company's iTunes® digital music
management software and the iTunes Music Store, a service that consumers may
use to purchase music over the Internet. Further discussion on these related
music offerings may be found below under the headings "Software Products and
Computer Technologies" and "Internet Software, Integration, and Services."
iSight™
The Company introduced the iSight digital video camera and the beta version
of its iChat™ AV software application in June 2003. Together they enable
high-quality audio and videoconferences between two Macintosh systems over
broadband connections. iSight is a small, portable aluminum alloy camera
with all audio, video and power provided by a single FireWire cable. iSight
features a custom designed lens with auto-focus and a high-end CCD sensor to
provide high-resolution images and full-motion video at up to 30 frames per
second. iSight includes an integrated microphone that suppresses ambient
noise for clear digital audio. With its on-board processor, iSight
automatically adjusts color, white balance, sharpness and contrast to
provide high-quality images with accurate color reproduction in most
lighting conditions. iSight is designed to be center-mounted on the top of a
computer screen and uses its integrated tilt and rotate mechanism to easily
position the camera for natural, face-to-face video conferencing.
Displays
The Company's all-digital, active-matrix LCD flat panel displays, including
the 23-inch Cinema HD Display®, 20-inch Apple Cinema Display® and the
17-inch Apple Studio Display®, produce flicker-free images with twice the
brightness, sharpness, and contrast ratio of a typical CRT display.
Software Products and Computer Technologies
The Company offers a range of software products for education, creative,
consumer and business customers, including Mac OS X, the Company's
proprietary operating system software for the Macintosh; server software and
related solutions; professional application software; and consumer,
education and business oriented application software.
Operating System Software
During 2001, the Company introduced the first customer release of its new
client operating system, Mac OS X, and its first significant upgrade, Mac OS
X version 10.1. At its introduction, Mac OS X offered advanced functionality
built on an open-source UNIX-based foundation and incorporated the most
fundamental changes in both core technology and user interface design made
by the Company to the Mac OS in a single upgrade since the original
introduction of the Macintosh in 1984. Mac OS X features memory protection,
pre-emptive multi-tasking, and symmetric multiprocessing. Mac OS X includes
Apple's Quartz™® 2D graphics engine (based on the Internet-standard Portable
Document Format) for enhanced graphics and broad font support, OpenGL for
enhanced 3D graphics and gaming, and Apple's new user interface named
"Aqua®," which combines superior ease-of-use with new functionality. In
January 2002, the Company made Mac OS X the default operating system on all
new Macintosh systems.
In August 2002, the Company introduced Mac OS X version 10.2 (code named
"Jaguar"), the second significant upgrade to the original Mac OS X version.
Jaguar included a new Mail application designed to manage junk mail; iChat,
an AIM-compatible instant messenger; a system-wide Address Book; Inkwell™
handwriting recognition; improved Universal Access; an enhanced Finder™; an
updated version of QuickTime®, the Company's multimedia software for
playing, interacting with or viewing video, audio, and graphics files; and
an updated version of Sherlock®, the Company's advanced Internet search
engine. Jaguar also featured accelerated graphics performance, increased
compatibility with Windows networks, and a UNIX-based foundation with
enhancements including FreeBSD 4.4 and GCC 3.1-based developer tools.
In October 2003, the Company released Mac OS X version 10.3 (code named
"Panther"), the Company's current version of Mac OS X. Panther incorporates
more than 150 new features including a completely new Finder™; Exposé, a new
way to organize windows and instantly see all open windows at once;
FileVault™, a new feature that secures the contents of a home directory with
128-bit AES encryption; iChat AV, a complete desktop video conferencing
solution; and enhanced support for use on Windows-based networks.
Server Software and Server Solutions
Mac OS X server software was initially introduced in May 2001, followed by
Mac OS X Server version 10.2 (code named "Jaguar Server") that was released
in August 2002. Jaguar Server delivers high-performance services for
Internet and web serving, filing, printing, and networking services needed
to manage a network of Mac, UNIX, and Windows clients. It provides
performance and stability through full pre-emptive multi-tasking, symmetric
multiprocessing, protected memory, advanced virtual memory, software RAID
support, and support for networking and security standards. Jaguar Server
also includes Apple's Open Directory architecture for centralized management
of network resources using LDAPv3 directory services and a suite of
built-in, standards-based Internet services like an optimized Apache web
server for high-performance hosting of secure dynamic web sites and
QuickTime Streaming Server and QuickTime Broadcaster for streaming live
events over the Internet. Jaguar Server also comes with a flexible mail
server that supports POP and secure IMAP, as well as WebMail for
browser-based email access.
In October 2003, the Company began shipping the current version of its
server operating system, which is called Mac OS X Server version 10.3
"Panther Server." This release integrates leading open source and open
standards server software with easy-to-use management tools that make it
easy to serve Macintosh, Windows and Linux clients. Panther Server includes
powerful open source solutions and easy-to-use server management
capabilities. New features in Panther Server include Server Admin tool for
easily setting up multiple servers; Open Directory 2 for hosting scalable
LDAP directory and Kerberos authentication services; Samba 3 for providing
login and home directory support for Windows clients; and the JBoss
application server for running powerful J2EE applications.
Apple Remote Desktop™ for Mac OS X software enables users, teachers and
administrators to remotely manage other Macintosh systems anywhere on a
local network, AirPort® wireless network or across the Internet. With Apple
Remote Desktop, teachers can view students' computer screens, perform group
demonstrations and help individuals with real-time screen-sharing, text chat
and the "request attention" command. System administrators can provide
remote assistance, get comprehensive system profiles, reconfigure system
settings and quickly and easily distribute software applications across
hundreds of computers—all from one central location over both Ethernet and
AirPort wireless networks. Apple Remote Desktop supports multiple levels of
administrator access, each with its own password, providing a secure way for
teachers or department-level administrators to assist users while
restricting privileges for deleting items or changing system settings.
Professional Application Software
Final Cut Pro® is a video editing application designed to meet the demanding
needs of professional video editors by providing them with a
high-performance, scalable, and cost-effective solution for editing in
virtually any format: DV, SD, HD and film. Final Cut Pro includes tools for
editing, compositing and effects, color-correction and audio. Final Cut Pro
4, released in June 2003, introduced RT Extreme, a multi-stream real-time
effects engine, new interface customization tools, high performance codecs
for uncompressed SD and HD video, and 32-bit floating point (per channel)
image processing. Final Cut Pro 4 also includes three completely new
integrated tools—LiveType for creating animated, broadcast-quality titles,
Soundtrack for music composition, and Compressor for batch encoding and
output of high-quality MPEG-2, MPEG-4, and QuickTime files directly from
Final Cut Pro 4's timeline. Version 4.1 of Final Cut Pro was released in
November 2003 and included optimizations for the Power Mac G5 and Mac OS X
Panther.
Shake® 3, an upgrade of the Company's compositing and visual effects
software designed for large format film and video productions, was announced
in April 2003 and released in June 2003. Shake 3 includes new Mac OS X only
features such as the Shake Qmaster network render management software and
unlimited network rendering licenses which allow visual effects artists to
easily distribute rendering tasks across a cluster of Apple's Xserve rack
servers or desktop Power Macintosh computers for enhanced performance and
efficiency. Shake 3 also includes new visual effects features available to
Mac OS X, Linux and IRIX customers including motion-tracking and real-time
broadcast preview.
The Company acquired Emagic, a leading provider of professional software and
hardware solutions for computer based music production, during the fourth
quarter of 2002. Emagic's most popular product, Logic®, is actively used by
musicians around the world and by professionals in music production, film
scoring, and post-production facilities. It combines composition, notation
and audio production facilities in one comprehensive product. Logic Platinum
offers a comprehensive set of music creation tools featuring rock-solid MIDI
timing and synchronization, mixing and automation with total recall, and
non-destructive real-time editing of both audio and MIDI. It also offers
MIDI timing with 960 PPQN and sends and receives synchronized MIDI clock,
MTC, MMC and word clock signals, making it ideal for film, TV and video
post-production facilities.
DVD Studio Pro® 2 was announced in April 2003 and released in August 2003.
It is a completely new DVD authoring product, rebuilt from the ground up
with a new user interface, professionally designed and fully customizable
templates, an innovative new menu editor, timeline-based track editing and a
new software-based MPEG-2 encoder.
Consumer, Education and Business Oriented Application Software
Introduced in January 2003, iLife™ is the Company's integrated suite of
digital lifestyle applications that features the Company's iTunes®, iPhoto™,
iMovie™®, and iDVD™ software applications. These applications are integrated
to allow users easy access to their digital music, photos and movies from
within each application. All of these iLife applications come preinstalled
on the Company's Macintosh systems, except for iDVD, which is only available
on Macintosh systems configured with a SuperDrive.
iTunes® is a digital music management application that lets users create and
manage their own digital music library. iTunes organizes music using
searching, browsing and playlist features. It supports both audio and MP3 CD
burning, features a graphic equalizer and cross fading between songs, and
supports automatic synchronization with the music stored on an iPod. In July
2002, the Company introduced iTunes 3, featuring Smart Playlists, which
automatically and dynamically updates playlists based on simple rules set by
the user, and Sound Check for consistent volume playback. In April 2003, the
Company launched iTunes 4, which integrated the Company's iTunes Music
Store. Further discussion on the iTunes Music Store may be found below under
the heading "Internet Software, Integration, and Services." In October 2003,
the Company launched iTunes for Windows, the first version of the Company's
digital music management software for users of Windows-based personal
computers. iTunes for Windows includes all of the same features as the
Macintosh version, including MP3 and AAC encoding from audio CDs, Smart
Playlists, free Internet radio stations, and the ability to burn custom
playlists to CDs and MP3 CDs, burn content to DVDs to back-up an entire
music collection and share music between networked computers via
Rendezvous™, the Company's zero configuration networking technology.
iMovie®, the Company's easy-to-use consumer digital video editing software
for creation of home and classroom movies, features an enhanced user
interface, improved audio editing capabilities, enhanced controls for
titling and transitions, and added special effects.
iDVD™ is consumer oriented software that makes it easy to turn iMovie files,
QuickTime files and digital pictures into DVDs that can be played on most
consumer DVD players. iDVD simplifies DVD authoring by including
professionally designed themes and drag-and-drop simplicity.
iPhoto™ is consumer oriented digital photo software that makes it easy to
import, edit, save, share, and print digital photos, as well as organize and
manage an entire digital photo collection containing thousands of photos.
Users are able to view their photos in full-screen; use the slide show
feature accompanied by their favorite music; automatically create custom web
pages of their photos; email photos to friends and family; order
professionally-processed prints and enlargements online; or easily design
and order custom-
7
--------------------------------------------------------------------------------
printed, linen-covered hard bound photo books online. Prints, enlargements,
and hardbound book production are currently only available to U.S. and
Canadian customers.
The Company's iChat AV software application and the iSight digital video
camera together enable high-quality audio and video conferences between two
Macintosh systems over broadband connections. iChat AV also enables audio
conferences over dial-up connections to the Internet. iChat AV requires no
setup or configuration beyond installing the software and plugging in a
FireWire video camera and microphone, such as iSight or certain third-party
FireWire based cameras with microphones.
Final Cut® Express, introduced in January 2003, is based on Apple's
award-winning Final Cut Pro software. Final Cut Express enables small
business users, educators, students and advanced hobbyists to perform
professional-quality digital video editing. Final Cut Express includes key
features used by video editors such as the same interface and workflow as
Final Cut Pro, powerful video editing tools, hundreds of special effects,
and easy delivery of output to DVD, the Internet, or tape.
Keynote™ is the Company's presentation software introduced in January 2003
that gives users the ability to create high-quality presentations. Designed
to be easy to use, Keynote includes professionally designed themes, advanced
typography, professional-quality image resizing, animated charts and tables
that can be created quickly, and cinematic-quality transitions. Keynote
imports and exports PowerPoint, QuickTime, and PDF files to simplify the
creation and sharing of presentations.
AppleWorks® 6.2 is an integrated productivity application that incorporates
word processing, page layout, image manipulation, spreadsheets, databases
and presentations in a single application. Intended to be an easy-to-use
product for the Company's consumer and education customers, AppleWorks makes
it simple to create professional-looking documents in the classroom and at
home.
FileMaker Corporation, a wholly owned subsidiary of the Company, develops,
publishes, and distributes desktop-based database management application
software for Mac OS and Windows-based systems. The FileMaker® Pro database
software and related products offer strong relational databases and advanced
desktop-to-web publishing capabilities.
Third-Party Software Products
Thousands of third-party software titles and solutions are available for the
Macintosh platform. The Company sells a variety of these third-party
software products directly to end users through both its retail and online
stores.
Internet Software, Integration, and Services
Apple's Internet strategy is focused on delivering seamless integration with
and access to the Internet throughout the Company's product lines. The
Company's Internet products and technologies adhere to many industry
standards in order to provide an optimized user experience through
interoperability. An easy Internet Setup Assistant is included with the Mac
OS.
iTunes Music Store™
In April 2003, the Company launched the iTunes Music Store in the United
States, an online music store that allows Macintosh customers to find,
purchase, and download music for 99 cents per song or, in most cases, $9.99
per album. The iTunes Music Store is fully integrated with a one-click
download directly into the latest version of the iTunes software, allowing
customers to purchase, download, organize, share, and transfer their digital
music to an iPod using a single software application. Requiring no
subscription fee, the iTunes Music Store with iTunes software offers
customers a broad range of personal rights to the songs purchased, including
playing songs on up to three computers, burning songs onto an unlimited
number of CDs for personal use, playing songs on an unlimited number of
iPods, and using songs in certain applications such as iPhoto, iMovie, and
iDVD. Users can easily search the contents of the entire music
8
--------------------------------------------------------------------------------
store to locate songs by title, artist, or album, or browse the entire
contents of the music store by genre and artist. Users can also listen to a
free 30-second preview of any song in the store.
The second generation of the iTunes Music Store for both Macintosh and
Windows users became available in October 2003. New features of the music
store include online gift certificates that can be sent to family and
friends via e-mail, an "allowance" feature that enables users to
automatically deposit funds into an iTunes Music Store account every month,
and the availability of audio books for purchase directly from the iTunes
Music Store. The Company is exploring ways to enhance awareness and promote
use of the iTunes Music Store, including arrangements with America Online,
Inc. (AOL) to integrate links to the iTunes Music Store into AOL's Music
site and Pepsi-Cola North America to give away songs from the iTunes Music
Store.
Safari™
In June 2003, the Company introduced Safari 1.0, the Company's new Mac OS X
compatible web browser that is capable of loading web pages rapidly. Safari
uses the advanced interface technologies underlying Mac OS X and includes
built-in Google search; SnapBack™ to instantly return to search results; a
new way to name, organize and present bookmarks; tabbed browsing; and
automatic "pop-up" ad blocking. The Company also released a software
development kit that allows developers to embed the Safari HTML rendering
engine directly into their applications.
Quicktime®
QuickTime, the Company's multimedia software for Macintosh and Windows
platforms, features streaming of live and stored video and audio over the
Internet and playback of high-quality audio and video on computers. The
current version of QuickTime, QuickTime 6, features support for the
open-standard MPEG 4 format. QuickTime 6 includes the new Instant-On
Streaming feature that eliminates buffer delays and provides users with the
ability to quickly and easily scrub through streaming media content to
locate and instantly view specific sections. In addition, QuickTime 6
running on Mac OS X now supports JPEG 2000, the next generation JPEG
standard that allows users to capture still images in a higher quality and
smaller file size than ever before. QuickTime 6 also includes AAC, the
standard MPEG-4 audio format. AAC is the next generation
professional-quality audio format that delivers superior sound quality with
reduced file sizes.
The Company also offers several other QuickTime products, including
QuickTime Pro, a suite of software tools that allows creation and editing of
Internet-ready audio and video files and allows a user to add special
effects and other features to QuickTime movies; QuickTime Streaming Server
which facilitates the broadcasting of streaming digital video; and QuickTime
Broadcaster that allows users to quickly and easily produce
professional-quality live events for online delivery.
.Mac™
The Company's .Mac offering is a suite of Internet services that for an
annual fee provides Macintosh users with powerful Internet tools. .Mac
features email service with IMAP, POP or web-based access, 100MB of iDisk
Internet storage, and hosting for personalized homepages and shared digital
photo albums. Also included with .Mac is McAfee's Virex anti-virus software
and Backup, a personal back-up solution allowing users to archive data to
their Internet storage, CD, or DVD.
Wireless Connectivity and Networking
AirPort Extreme™®
AirPort Extreme, introduced in January 2003, is the Company's next
generation of Wi-Fi wireless networking technology based on the new
ultra-fast 802.11g standard. With speeds up to 54 Mbps, AirPort Extreme
delivers almost five times the data rate of today's 802.11b based products,
yet is fully compatible with the millions of 802.11b Wi-Fi devices around
the world. AirPort Extreme Base Stations can serve up
9
--------------------------------------------------------------------------------
to 50 Macintosh and Windows users simultaneously, provide wireless bridging
to extend the range beyond just one base station, and support USB printer
sharing to allow multiple users to wirelessly share USB printers connected
directly to the base station.
Embedded into Mac OS X is Bluetooth technology. Bluetooth is an emerging
industry standard for wirelessly connecting computers and peripherals that
supports transmission of data at up to 1 Mbps within a range of
approximately 30 feet. The Company's Bluetooth technology for Mac OS X lets
customers wirelessly share files between Macintosh systems, synchronize and
share contact information with Palm-OS based PDAs, and access the Internet
through Bluetooth-enabled cell phones. A Bluetooth USB adaptor can
Bluetooth-enable any USB-based Macintosh computer running in Mac OS X
version 10.1.4 or higher.
The Company's Rendezvous™ networking technology is based on open Internet
Engineering Task Force (IETF) Standard Protocols such as IP, ARP and DNS.
Rendezvous uses industry standard networking protocols and zero
configuration technology to automatically discover and connect devices over
any IP network, including Ethernet or 802.11-based wireless networks like
the Company's AirPort product. Major developers such as Canon, Epson,
Hewlett-Packard, Lexmark, Philips, Sybase, World Book and Xerox have
announced support for Rendezvous in a broad range of products including
network printers, consumer electronics, enterprise database management and
educational applications. The Company has made the Rendezvous source code
freely available allowing developers to use Rendezvous technology in their
network-enabled devices or software applications. The Rendezvous source code
includes software to support UNIX, Linux, and Windows-based systems and
devices. Rendezvous support is built into Mac OS X.
The Company developed FireWire® technology, also referred to as IEEE 1394,
which is a high-speed serial I/O technology for connecting digital devices
such as digital camcorders and cameras to desktop and portable computers.
With its high data-transfer speed and "hot plug-and-play" capability,
FireWire has become an established cross-platform industry standard for both
consumers and professionals and is the data interface of choice for today's
digital video and audio devices, as well as external hard drives and other
high-speed peripherals. FireWire is currently included on all Macintosh
systems and is a data transfer technology utilized by iPod.
Product Support and Services
AppleCare® offers a range of support options for Apple customers. These
options include assistance that is built into software products, printed and
electronic product manuals, online support including comprehensive product
information as well as technical assistance, and the AppleCare Protection
Plan. The AppleCare Protection Plan is a fee-based service that typically
includes three years of phone support and hardware repairs, dedicated
web-based support resources, and user diagnostic tools.
Apple Training offers comprehensive system administration and development
training on Apple technologies, together with certification programs that
test customers' skills and verify their technical proficiency. Apple
Professional Services offers a range of custom, personalized technical
services, including Internet consulting and setup, installation and
integration services. The Company also offers specialized loan programs
including loans for consumers, students, and educators. Apple also provides
leasing solutions for its education institution customers and its business
and professional customers. The Company uses several third-party lenders to
originate and carry these loans and leases, all of which are non-recourse to
the Company.
Specialized Education Products and Services
The Company offers a variety of unique services and products to its
education customers, including a separate online store for education
customers offering special education price lists and promotions; special
financing programs for K-12 and higher education students, faculty, and
staff; a special edition of its productivity software suite, AppleWorks,
that is cross platform for both Macintosh and Windows computers; the iBook
Wireless Mobile Lab that allows teachers and students to share iBook
computers, a printer, and a wireless network/Internet connection stored on a
cart for mobility between classrooms; and three special Digital Media Studio
solutions designed for education, including one that is integrated into a
mobile cart. Additionally, Apple Professional Services offers a range of
technical services to education customers.
In 2001, Apple acquired PowerSchool Inc., a privately held provider of
web-based student information systems for K-12 schools and school districts.
PowerSchool® software products give school administrators and teachers the
ability to easily and cost-effectively manage student records and give
parents real-time access to track their children's performance via the
Internet. PowerSchool offers the option of remote hosting with an
application service provider model.
Retail
Since inception of its retail initiative in 2001, the Company has opened 65
retail stores in the United States through fiscal year 2003 and during the
first quarter of 2004 opened 9 additional stores, including its first
international store in the Ginza in Tokyo, Japan. The Company has located
its stores at high traffic
locations in quality shopping malls and urban shopping districts. In
addition to its own hardware, software and peripheral products, the
Company's stores carry a variety of third-party hardware and software
products.
One of the main goals of the retail initiative is to bring new customers to
the Company and expand its installed base through sales to both first time
personal computer buyers and those switching to the Macintosh platform from
competing operating system platforms. By operating its own stores, the
Company is able to better control the customer retail experience. The stores
are designed to simplify and enhance the presentation and marketing of
personal computing products. To that end, retail store configurations have
expanded to various sizes in order to accommodate market demands. The stores
employ experienced and knowledgeable personnel, provide post-sale advice and
support, offer a wide selection of third-party products selected to
complement the Company's own products, host training and marketing
presentations, and provide certain hardware support services. Additionally,
the stores provide a forum in which the Company is able to present entire
computing solutions to users in areas such as digital photography, digital
video, music, children's software, and home and small business computing.
Education
For more than 25 years, the Company has focused on the use of technology in
education. The Company believes that effective integration of technology
into classroom instruction can result in higher levels of student
achievement, especially when used to support collaboration, information
access, and the expression and representation of student thought and ideas.
The Company provides a range of products and services designed to help
schools maximize their investments in technology. This is manifested in many
of the Company's products and services, including hardware products like the
eMac™ and the iBook® that are designed to meet the needs of education
customers, video editing solutions, wireless networking capabilities,
student information systems, one-to-one learning solutions, and high-quality
curriculum and professional development solutions.
Creative Professionals
Creative professionals constitute one of the Company's most important
markets for both hardware and software products. This market is also
important to many third-party developers who provide Macintosh compatible
hardware and software solutions. Creative customers utilize the Company's
products for a variety of creative activities including digital video and
film production and editing; digital video and film special effects,
compositing, and titling; digital still photography; graphic design,
publishing, and print production; music performance and production; audio
production and sound design; and web design, development, and
administration.
The Company designs its high-end hardware solutions, including servers and
desktop and portable Macintosh systems, to incorporate the power,
expandability, and features desired by creative professionals. Additionally,
the Company's operating system, Mac OS X, incorporates powerful graphics and
audio technologies and features developer tools to optimize system and
application performance when running powerful creative solutions provided by
the Company or by third-party developers. The Company also offers various
software solutions to meet the needs of its creative customers, many of
which are described below.
Ticker
AAPL
SIC Code
SIC:
3571 - Electronic Computers
Desktop Computers- Category Main Page
Notebook Computers -
Category Main Page
Printers
- Category Main Page
Desktop Computer Companies in the Directory
Apple
Dell
Gateway
Hewlett Packard
IBM
Notebook Computer Companies in the Directory
Apple
Dell
Gateway
Hewlett Packard
IBM
Printer Manufacturers in the Directory
Dell
Hewlett Packard
|
|
