Form lO-K
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`Page 1 of 85
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`lO-K l d220209d10k.htm FORM lO-K
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`SECURITIES AND EXCHANGE COMMISSION
`
`UNITED STATES
`
`Washington, DC. 20549
`
`Form 10-K
`
`(Mark One)
`E ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`For the fiscal year ended September 24, 2011
`Or
`
`El
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`TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`For the transition period from
`to
`Commission file number: 000-10030
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`APPLE INC.
`(Exact name of registrant as specified in its charter)
`
`California
`(State or otherjurisdiction of incorporation or organization)
`
`94—24041 10
`(I.R.S. Employer Identification No.)
`
`lInfinite Loop
`Cupertino, California
`(Address of principal executive offices)
`Registrant’s telephone number, including area code: (408) 996—1010
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`95014
`(Zip Code)
`
`Securities registered pursuant to Section 12(b) of the Act:
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`Common Stock, no par value
`(Title of class)
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`The NASDAQ Global Select Market
`(Name of exchange on which registered)
`Securities registered pursuant to Section 12(g) of the Act: None
`
`Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
`Yes E No [I
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`Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
`Yes El No E
`
`Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
`preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
`days.
`
`Yes E No III
`
`Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be
`submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
`was required to submit and post such files).
`
`Yes E No [I
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`Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (section 229.405 of this chapter) is not contained herein, and will not
`be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any
`amendment to this Form 10-K. El
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`Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non— accelerated filer, or a smaller reporting company. See the definitions
`of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
`
`Large accelerated filer E
`(Do not check if smaller reporting company)
`Non-accelerated filer El
`Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
`Yes El No E
`
`Accelerated filer
`Smaller Reporting Company
`
`El
`El
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`The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant, as of March 25, 2011, the last business day of the Company’s
`most recently completed second fiscal quarter, was approximately $322,921,000,000 based upon the closing price reported for such date on the NASDAQ Global Select
`Market. For purposes of this disclosure, shares of common stock held by persons who hold more than 5% of the outstanding shares of common stock and shares held by
`executive officers and directors of the registrant have been excluded because such persons may be deemed to be affiliates. This determination of executive officer or
`affiliate status is not necessarily a conclusive determination for other purposes.
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`http://www. sec. gov/Archives/edgar/data/3201 93/0001 193 1 251 1282113/d220209d10k.htm 12/29/2013
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`SIGHTSOUND TECHNOLOGIES
`EXHIBIT 2145
`
`CBM2013-00020 (APPLE v. SIGHTSOUND)
`PAGE 000001
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`Form lO-K
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`Page 2 of 85
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`929,409,000 shares of Common Stock Issued and Outstanding as of October 14, 2011
`DOCUMENTS INCORPORATED BY REFERENCE
`
`(1) Portions of the registrant’s definitive Proxy Statement relating to its 2012 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual
`Report on Form 10-K where indicated. Such Proxy Statement will be filed with the US Securities and Exchange Commission within 120 days after the end of the
`fiscal year to which this report relates.
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`PAGE 000002
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`

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`Form 10-K
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`Page 34 of 85
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`Fiscal Year 2010 versus 2009
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`Net sales during 2010 increased $22.3 billion or 52% compared to 2009. Several factors contributed positively to this increase,
`including the following:
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`Net sales of iPhone and related products and services were $25.2 billion in 2010 representing an increase of $12.1
`billion or 93% compared to 2009. iPhone unit sales totaled 40 million in 2010, which represents an increase of
`19.3 million or 93% compared to 2009.
`iPhone year-over-year growth was attributable primarily to continued
`growth from existing carriers, expanded distribution with new international carriers and resellers, and strong demand
`for iPhone 4, which was released in the US. in June 2010 and in many other countries over the remainder of 2010.
`As of September 25, 2010, the Company distributed iPhone in 89 countries through 166 carriers. Net sales of iPhone
`and related products and services accounted for 39% of the Company’ 5 total net sales for 2010 compared to 30% in
`2009.
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`Net sales of iPad and related products and services were $5.0 billion and unit sales of iPad were 7.5 million during
`2010. iPad was released in the US. in April 2010 and in various other countries over the remainder of 2010. As of
`September 25, 2010, the Company distributed iPad in 26 countries. The Company distributes iPad through its direct
`channels, certain cellular network carriers’ distribution channels and certain third-party resellers. Net sales of iPad
`and related products and services accounted for 8% of the Company’ s total net sales for 2010, reflecting the strong
`demand for iPad during the five months following its release.
`
`Mac net sales increased by $3.6 billion or 26% in 2010 compared to 2009, and Mac unit sales increased by
`3.3 million or 31% in 2010 compared to 2009. Net sales per Mac unit sold decreased by 4% in 2010 compared to
`2009 due primarily to lower average selling prices of Mac portable systems. During 2010, net sales and unit sales of
`the Company’s Mac portable systems increased by 18% and 25%, respectively, primarily attributable to strong
`demand for MacBook Pro, which was updated in April 2010. Net sales and unit sales of the Company’s Mac
`desktop systems increased by 43% and 45%, respectively, as a result of higher sales of iMac, which was updated in
`July 2010. Net sales of the Company’s Macs accounted for 27% of the Company’ s total net sales in 2010 compared
`to 32% in 2009.
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`Net sales of other music related products and services increased $912 million or 23% during 2010 compared to
`2009. This increase was due primarily to growth of the iTunes Store which generated total net sales of $4.1 billion
`for 2010. The results of the iTunes Store reflect growth of the iTunes App Store, continued growth in the installed
`base of iPhone, iPad, and iPod customers, and the expansion of third-party audio and video content available for sale
`and rent via the iTunes Store. The Company continues to expand its iTunes content and applications offerings
`around the world. Net sales of other music related products and services accounted for 8% of the Company’s total
`net sales for 2010 compared to 9% in 2009.
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`Net sales of iPods increased $183 million or 2% during 2010, while iPod unit sales declined by 7% during 2010
`compared to 2009. Net sales per iPod unit sold increased by 10% to $164 in 2010 compared to 2009, due to a shift in
`product mix toward iPod touch.
`iPod touch experienced strong growth in each of the Company’s reportable
`operating segments. Net sales of iPods accounted for 13% of the Company’s total net sales for 2010 compared to
`19% in 2009.
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`Segment Operating Performance
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`The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments consist of
`the Americas, Europe, Japan, Asia-Pacific and Retail operations. The results of the Americas, Europe, Japan and Asia-Pacific
`reportable segments do not include the results of the Retail segment. The Americas segment includes both North and South
`America. The Europe segment includes European countries, as well as the Middle East and Africa. The Asia-Pacific segment
`includes Australia and Asian
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`32
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