10-K 1 a05-20674_110k.htm ANNUAL REPORT PURSUANT TO SECTION 13 AND 15(D)
`
`UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`Washington, D.C. 20549
`Form 10-K
`
`(Mark One)
`x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
`ACT OF 1934
`
`For the fiscal year ended September 24, 2005
`or
`o 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 0-10030
`APPLE COMPUTER, INC.
`(Exact name of registrant as specified in its charter)
`CALIFORNIA
`942404110
`(State or other jurisdiction
`(I.R.S. Employer
`of incorporation or organization)
`Identification No.)
`1 Infinite Loop
`95014
`Cupertino, California
`(Zip Code)
`(Address of principal executive offices)
`Registrant’s telephone number, including area code: (408) 996-1010
`Securities registered pursuant to Section 12(b) of the Act: None
`Securities registered pursuant to Section 12(g) of the Act:
`Common Stock, no par value
`(Titles of classes)
`
`
`
`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 x No o
`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. x
`Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes x No o
`Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x
`The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant, as of March 26, 2005, was approximately
`$29,434,521,480 based upon the closing price reported for such date on the NASDAQ National 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.
`842,767,948 shares of Common Stock Issued and Outstanding as of November 18, 2005
`
`
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`PART I
`The Business section and other parts of this Annual Report on Form 10-K (“Form 10-K”) contain forward-looking statements that involve risks
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`Apple Exhibit 4397
`Apple v Sightsound Technologies
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`and uncertainties. Many of the forward-looking statements are located in “Management’s Discussion and Analysis of Financial Condition and
`Results of Operations.” Forward-looking statements can also be identified by words such as “anticipates,” “expects,” “believes,” “plans,”
`“predicts,” 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 the subsection entitled “Factors That May Affect Future Results and Financial Condition” under Part II, Item 7 of this
`Form 10-K. The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.
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`Item 1. Business
`Company Background
`Apple Computer, Inc. (“Apple” or the “Company”) was incorporated under the laws of the State of California on January 3, 1977. The Company
`designs, manufactures, and markets personal computers and related software, services, peripherals, and networking solutions. The Company also
`designs, develops, and markets a line of portable digital music players along with related accessories and services including the online distribution
`of third-party music, audio books, music videos, short films, and television shows. The Company’s products and services include the Macintosh
`line of desktop and notebook computers, the iPod digital music player, the Xserve G5 server and Xserve RAID storage products, a portfolio of
`consumer and professional software applications, the Mac OS X operating system, the iTunes Music Store, a portfolio of peripherals that support
`and enhance the Macintosh and iPod product lines, and a variety of other service and support offerings. The Company sells its products worldwide
`through its online stores, its own retail stores, its direct sales force, and third-party wholesalers, resellers, and value added resellers. The Company
`also sells a variety of third-party products that are compatible with the Company’s Macintosh and iPod product lines, including computer printers
`and printing supplies, storage devices, computer memory, digital camcorders and still cameras, personal digital assistants, iPod accessories, and
`various other computing products and supplies through its online and 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.
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`Business Strategy
`The Company is committed to bringing the best personal computing and music experience to students, educators, creative professionals,
`businesses, government agencies, and consumers through its innovative hardware, software, peripherals, services, and Internet offerings. The
`Company’s business strategy leverages its unique ability, through the design and development of its own operating system, hardware, and many
`software applications and technologies, to bring to its customers new products and solutions with superior ease-of-use, seamless integration, and
`innovative industrial design. The Company believes continual investment in research and development is critical to facilitate innovation of new
`and improved products and technologies. Besides updates to its existing line of personal computers and related software, services, peripherals, and
`networking solutions, the Company continues to capitalize on the convergence of digital consumer electronics and the computer by creating
`innovations like the iPod and iTunes Music Store. The Company’s strategy also includes expanding its distribution network to effectively reach
`more of its targeted customers and provide them a high-quality sales and after-sales support experience.
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`Digital Hub
`The Company believes personal computing is in an 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
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`iPod digital music players, personal digital assistants, cellular phones, digital camcorders and still cameras, CD and DVD players, televisions, and
`other consumer electronic devices. The attributes of the personal computer include a high quality user interface, relatively inexpensive data
`storage, and the ability to run complex applications and easily connect to the Internet. Apple is the only company in the personal computer industry
`that controls the design and development of the entire personal computer—from the hardware and operating system to sophisticated applications.
`Additionally, the Company’s products provide innovative industrial design, intuitive ease-of-use, and built-in networking, graphics and multimedia
`capabilities. Thus, the Company is uniquely positioned to offer integrated digital hub products and solutions.
`The Company 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. The Company has played a role in the development, enhancement, promotion,
`and/or use of numerous of these industry standards.
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`Expanded Distribution
`The Company believes that a high quality buying experience with knowledgeable salespersons who can convey the value of the Company’s
`products and services is critical to attracting and retaining customers. The Company sells many of its products and resells certain third-party
`products in most of its major markets directly to consumers, education customers, and businesses through its retail and online stores in the U.S. and
`internationally. The Company has also invested in programs to enhance reseller sales, including the Apple Sales Consultant Program, which
`consists of the deployment of Apple employees and contractors to selected third-party reseller locations. The Company believes providing direct
`contact with its targeted customers is an efficient way to demonstrate the advantages of its Macintosh computer and other products over those of its
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`competitors. The Company has significantly increased the points of distribution for the iPod product family in order to make its products available
`at locations where its customers shop.
`From inception of the retail initiative in 2001 through 2005, the Company had opened 116 retail stores in the U.S. and 8 international stores in
`Canada, Japan, and the U.K. The Company opened 2 additional stores in October 2005. The Company has typically located its stores at high
`traffic locations in quality shopping malls and urban shopping districts.
`One of the goals of the retail initiative is to bring new customers to the Company and expand its installed base through sales to computer users
`who currently do not own a Macintosh computer and first time personal computer buyers. By operating its own stores and building them in
`desirable high traffic locations, the Company is able to better control the customer retail experience and attract new customers. The stores are
`designed to simplify and enhance the presentation and marketing of personal computing products. To that end, retail store configurations have
`evolved into various sizes in order to accommodate market demands. The stores employ experienced and knowledgeable personnel who provide
`product advice and certain hardware support services. The stores offer a wide selection of third-party hardware, software, and various other
`computing products and supplies selected to complement the Company’s own products. Additionally, the stores provide a forum in which the
`Company is able to present computing solutions to users in areas such as digital photography, digital video, music, children’s software, and home
`and small business computing.
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`Education
`For more than 25 years, the Company has focused on the use of technology in education and has been committed to delivering tools to help
`educators teach and students learn. The Company believes 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
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`of student thought and ideas. The Company creates solutions that enable new modes of curriculum delivery, better ways of conducting research,
`and opportunities for professional development of faculty, students, and staff. The Company has designed a range of products and services to help
`schools maximize their investments in technology. This is manifested in many of the Company’s products and services that are designed to meet
`the needs of education customers. These products and services include the eMac™, iMac™, and the iBook®, video creation and editing solutions,
`wireless networking, student information systems, high-quality curriculum and professional development solutions, and one-to-one (1:1) learning
`solutions (primarily in K-12). 1:1 learning solutions typically consist of iBook portable computers for every student and teacher along with a
`wireless network connected to a central server.
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`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 and workflow management; graphic design, publishing, and print production; music
`creation and production; audio production and sound design; and web design, development, and administration.
`The Company designs its high-end hardware solutions, including servers, desktops, and portable Macintosh systems, to incorporate the power,
`expandability, and features desired by creative professionals. 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 third-party developers. The Company also offers various software solutions to meet the needs of its creative
`customers.
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`Business Organization
`The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments are comprised of the
`Americas, Europe, Japan, and Retail. The Americas, Europe, and Japan reportable segments do not include activities related to 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 Retail segment currently operates Apple-owned retail stores in the U.S., Canada, Japan, and the U.K. Other operating segments
`include Asia-Pacific, which includes Australia and Asia except for Japan, and the Company’s subsidiary, FileMaker, Inc. Each reportable
`geographic operating segment provides similar hardware and software products and similar services. Further information regarding the Company’s
`operating segments may be found in Part II, Item 7 of this Form 10-K under the heading “Segment Operating Performance,” and in Part II, Item 8
`of this Form 10-K in the Notes to Consolidated Financial Statements at Note 11, “Segment Information and Geographic Data.”
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`Hardware Products
`The Company offers a range of personal computing products including desktop and notebook computers, server and storage products, related
`devices and peripherals, and various third-party hardware products. The Company’s entire line of Macintosh® systems, excluding servers and
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`storage systems, features the Company’s Mac OS® X Version 10.4 Tiger™ and iLife® suite of software for digital photography, music, movies,
`and music creation.
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`Macintosh® Computers
`In June 2005, the Company announced its plan to begin using Intel microprocessors in its Macintosh computers. The Company plans to begin
`shipping certain models with Intel microprocessors by June 2006
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`and to complete the transition of all of its Macintosh computers to Intel microprocessors by the end of calendar year 2007. The Company also
`announced its new translation technology, Rosetta™, which will allow most PowerPC-based Macintosh applications to run on new Intel-based
`Macintosh computers. There are potential risks and uncertainties associated with this transition, which are further discussed in Part II, Item 7 of
`this 10-K under the heading “Factors That May Affect Future Results and Financial Condition.”
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`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, the Power Mac G5 utilizes 64-bit processing
`technology for memory expansion up to 16GB and advanced 64-bit computation while also running existing 32-bit applications natively. In
`October 2005, the Company updated the Power Mac G5 product line, which now comes in three processor configurations—dual 2.0GHz, dual
`2.3GHz, and a quad 2.5GHz that features two 2.5GHz dual processors. All Power Mac G5 desktops feature a SuperDrive™ and a NVIDIA
`GeForce 6600 graphics card. In addition, all Power Mac G5 desktops deliver connectivity and high-performance input/output (I/O), including dual
`Gigabit Ethernet, FireWire® 800 and FireWire 400 ports, USB 2.0 ports, optical digital I/O, PCI Express expansion, and optional AirPort®
`Extreme wireless networking and Bluetooth connectivity. The new Power Mac G5 product line also includes Mighty Mouse, the Company’s next
`generation mouse, featuring up to four programmable buttons and a Scroll Ball that lets users scroll vertically, horizontally, and diagonally.
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`Xserve® and Xserve RAID Storage System
`Xserve is a rack-mount server product designed for simple setup and remote management of intensive I/O applications such as digital video, high-
`resolution digital imagery, and large databases. In January 2005, the Company upgraded Xserve G5, which is now available with either a single
`2.0GHz or dual 2.3GHz PowerPC G5 processor. Xserve G5 includes a system controller with up to 16GB of PC3200 error correcting code
`memory; three hot-plug Serial ATA drive modules that deliver up to 1.5TB of storage; and dual on-board Gigabit Ethernet for high-performance
`networking. The Company’s Xserve RAID storage system was updated in September 2005 to deliver up to 7 terabytes of storage capacity and also
`expanded support for heterogeneous environments. The dual independent RAID controllers with 512MB cache per controller offer sustained
`throughput of over 385 Mbps—high enough to support media production environments using protected RAID level 5.
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`iMac®
`The iMac line of desktop computers is targeted at consumer and education markets. In October 2005, the Company introduced the new iMac G5,
`featuring the PowerPC G5 processor, a built-in iSight™ video camera, and a design that integrates the entire computer into either a 17-inch or 20-
`inch widescreen LCD flat-panel display. The 17-inch and 20-inch models come with 1.9GHz and 2.1GHz PowerPC G5 Processors, respectively.
`The iMac G5 offers 512MB of 533MHz DDR2 memory expandable to 2.5GB and 7200 rpm Serial ATA drives expandable up to 500GB. The
`iMac G5 comes standard with ATI Radeon X600 Pro or XT graphics, video memory, a SuperDrive, built-in Airport Extreme wireless networking,
`an internal Bluetooth module, built-in stereo speakers and microphone, and Mighty Mouse. The iMac G5 also offers built-in Ethernet
`(10/100/1000BASE-T), three USB 2.0 and two FireWire 400 ports. The iMac G5 also features Front Row media experience with the Apple
`Remote, which allows users to play music and view photos and videos via a remote control.
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`eMac™
`The eMac, a desktop personal computer targeted at the Company’s education customers, features a PowerPC G4 processor, a high resolution 17-
`inch flat cathode ray tube display, and preserves the all-in-one
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`compact design of the original iMac. The eMac offers PowerPC G4 processors running at up to 1.42GHz, 333MHz DDR memory, an optional
`SuperDrive, built-in modem and Ethernet (10/100BASE-T), ATI Radeon graphics, AirPort Extreme-ready, and USB 2.0 and 1.1 ports for
`connectivity to peripherals.
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`Mac® mini
`In January 2005, the Company introduced Mac mini, a desktop personal computer with a starting price of $499 and weighing as little as 2.9
`pounds. In July 2005, the Company updated its Mac mini lineup, expanding to three models and increasing memory to 512MB. The first model
`includes a 1.25GHz PowerPC G4 processor, a 40GB hard drive, and a Combo drive. The second model includes a 1.42GHz PowerPC G4
`processor, an 80GB hard drive, and a Combo drive. The third model includes a 1.42GHz PowerPC G4 processor, an 80GB hard drive, and a
`SuperDrive. All models include ATI Radeon 9200 graphics with 32MB of dedicated DDR memory, built-in Ethernet (10/100 BASE-T), one
`FireWire 400 and two USB 2.0 ports, and a DVI interface that also supports VGA so consumers can connect to LCD or CRT displays. The
`1.42GHz models of the Mac mini also include built-in AirPort Extreme for 54 Mbps 802.11g wireless networking along with an internal Bluetooth
`module.
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`PowerBook®
`The PowerBook family of portable computers is designed to meet the mobile computing needs of professionals and advanced consumer users. In
`October 2005, the Company updated its PowerBook G4 notebooks with extended battery life as well as higher resolution displays, including 1440
`by 960 pixels in the 15-inch model and 1680 by 1050 pixels in the 17-inch model. Both the 15-inch and 17-inch PowerBook G4 offer a 1.67GHz
`PowerPC G4 processor and the ATI Mobility Radeon 9700 graphics processor. The 12-inch PowerBook G4 features a 1.5GHz PowerPC
`processor, and the NVIDIA GeForce FX Go5200 graphics processor. Every PowerBook G4 notebook comes with a SuperDrive, 512MB of DDR
`memory, built-in AirPort Extreme wireless networking, an internal Bluetooth module for wireless connectivity, as well as a full complement of I/O
`ports including FireWire 400, USB 2.0, and a built-in 56K V.92 modem and Ethernet (10/100BASE-T), for connectivity to a wide range of
`peripherals. The 15-inch and 17-inch PowerBook G4 models also include built-in Gigabit Ethernet and FireWire 800.
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`iBook®
`The iBook is designed to meet the portable computing needs of education and consumer users. In July 2005, the Company upgraded its iBook® G4
`line to include faster PowerPC G4 processors running up to 1.42GHz, built-in AirPort Extreme 54 Mpbs 802.11g wireless networking and an
`available slot-load SuperDrive. The 12-inch model features a 1.33GHz PowerPC G4 processor and a slot-load Combo drive, while the 14-inch
`model includes a 1.42GHz G4 processor and a SuperDrive. All iBook G4 models offer a full complement of I/O ports including FireWire 400,
`USB 2.0, a built-in 56K V.92 modem and Ethernet (10/100BASE-T), as well as a built-in internal wireless Bluetooth module, for connectivity to a
`wide range of peripherals.
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`Music Products and Services
`The Company offers its iPod® line of digital music players and related accessories to Macintosh and Windows users. The Company also provides
`an online service to distribute third-party music, audio books, music videos, short films, and television shows through its iTunes Music Store®.
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`iPod®
`The iPod is the Company’s portable digital music player, featuring the Company’s patent pending Click Wheel, which combines a touch-sensitive
`wheel with five push buttons for one-handed navigation. In October 2005, the Company introduced the new iPod containing a 2.5-inch color
`screen that can display album artwork and photos and play video including music videos, video podcasts, home movies, short films, and television
`shows. The iPod lineup includes a 30GB model holding up to 7,500 songs, 25,000 photos, or
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`75 hours of video, and a 60GB model holding up to 15,000 songs, 25,000 photos, or 150 hours of video. The iPod features the Company’s patent
`pending Auto-Sync technology that automatically downloads digital music, podcasts, photos, audio books, home movies, music videos, short films,
`and television shows onto the iPod and keeps it up-to-date whenever it is plugged into a Macintosh or Windows computer using USB. The iPod
`also features Shuffle Songs, which randomly plays songs in a selected playlist or across the entire library. All iPods work with the Company’s
`iTunes® digital music management software on either a Macintosh or Windows computer.
`The iPod’s functionality extends beyond playing music, listening to audio books, and watching music videos, short films, home movies, and
`television shows. 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 photo downloading directly from certain digital
`cameras. The Company has also entered into alliances with many automobile manufacturers to offer seamless integration of the iPod in certain
`automobiles. Along with the iPod, the Company has developed the iTunes software and the iTunes Music Store, a service that consumers may use
`to purchase third-party music, audio books, music videos, short films, and television shows over the Internet.
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`iPod® nano
`In September 2005, the Company introduced iPod nano, a flash-memory based digital music player. The iPod nano is available in either a 2GB
`model holding up to 500 songs or 25,000 photos, or a 4GB model holding up to 1,000 songs or 25,000 photos. The iPod nano, which weighs as
`little as 1.5 ounces and is .27 inches thin, features a color screen and the Company’s patent pending Click Wheel.
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`iPod® shuffle
`In January 2005, the Company introduced iPod shuffle, a flash-memory based digital music player, which is based on iPod’s shuffle feature that
`randomly selects songs from the user’s music library or playlists. iPod shuffle works with iTunes and its patent-pending AutoFill feature that
`automatically selects songs to fill iPod shuffle from a user’s music library on their computer. iPod shuffle can also be used as a portable USB flash
`drive with up to 1GB of storage space. It is available in a 512MB model holding up to 120 songs and a 1GB model holding up to 240 songs.
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`iTunes Music Store®
`The Company’s iTunes Music Store, available for both Windows-based and Macintosh computers, is a service that allows customers to find,
`purchase, and download third-party digital music, audio books, music videos, short films, and television shows. The iTunes Music Store also offers
`Podcast Directory that allows users to search for and download audio programs to their computer and automatically receive new episodes over the
`Internet. Users can search the contents of the store catalog to locate works by title, artist, or album, or browse the entire contents of the store by
`genre and artist. Users can also listen to a free 30-second preview of content available through the store. The iTunes Music Store was originally
`introduced in the U.S. in April 2003 and now serves customers in 21 countries.
`The iTunes Music Store is fully integrated directly into the iTunes software allowing customers to preview, purchase, download, organize, share,
`and transfer digital content to an iPod using a single software application. Further discussion on the iTunes software may be found below under the
`heading “Software Products and Computer Technologies.” The iTunes Music Store offers customers a broad range of personal rights to the third-
`party content they have purchased. Content purchased through the store may also be used in certain applications such as iPhoto®, iMovie®, and
`iDVD®. Additional features of the iTunes Music Store include gift certificates that can be sent via e-mail; prepaid gift cards; an “allowance”
`feature that enables users to automatically deposit funds into an iTunes Music Store account every month; online gift options that let customers
`give specific songs, albums, music videos, or their own playlists to anyone with an email address; parental controls; and album reviews.
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`Peripheral Products
`The Company sells various Apple-branded computer hardware peripherals, including 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.
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`iSight™
`The Company’s iSight digital video camera enables video conferencing over broadband connections. iSight is a small, portable aluminum alloy
`camera with all audio, video, and power provided by a single FireWire cable. 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. iSight features
`an auto focusing auto exposure F/2.8 lens that captures high-quality pictures and full-motion video. 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 also includes a dual-element microphone that suppresses ambient noise for clear digital audio.
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`Displays
`The Company offers a family of widescreen flat panel displays featuring the 30-inch Apple Cinema HD Display™, a widescreen active-matrix
`LCD with 2560-by-1600 pixel resolution, a 23-inch widescreen Apple Cinema Display with 1920-by-1200 pixel resolution and a 20-inch
`widescreen Apple Cinema Display® with 1680-by-1050 pixel resolution. The displays feature dual FireWire and dual USB 2.0 ports built into the
`display and use the industry standard DVI interface for a pure digital connection with the Company’s latest Power Mac and PowerBook systems.
`The Cinema Displays feature an aluminum design with a very thin bezel, suspended by an aluminum stand that allows viewing angle adjustment.
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`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.
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`Operating System Software
`In April 2005, the Company began shipping Mac OS X Tiger, the Company’s fifth major version of Mac OS X. Tiger incorporates more than 200
`new features and innovations including Spotlight™, a desktop search technology that lets users find items stored on their Macintosh computers,
`including documents, emails, contacts and images; and Dashboard, a new way to instantly access information such as weather forecasts and stock
`quotes, using a new class of mini-applications called widgets. The server version of the Mac OS operating system, Mac OS X Server version 10.4,
`also began shipping in April 2005.
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`Server Software and Server Solutions
`Apple Remote Desktop™ 2 is the second generation of the Company’s asset management, software distribution, and help desk support software.
`Apple Remote Desktop 2 includes more than 50 features for centrally managing Mac OS X systems. Apple Remote Desktop 2 can perform a wide
`range of desktop management tasks such as installing operating system and application software, running hardware and software inventory reports,
`and executing commands on one or more remote Mac OS X systems on the network. Remote software installation tools allow IT professionals to
`install single or multiple software packages immediately or at specific dates and times. Comprehensive hardware and software reports based on
`more than 200 system information attributes allow administrators to keep track of their Mac OS X
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`systems. In addition, built-in real-time screen sharing enables help desk professionals to provide online assistance by observing and controlling the
`desktops of any remote Macintosh or Virtual Network Computing-enabled computer, including Windows and Linux systems.
`Xsan®, the Company’s enterprise-class Storage Area Network (SAN) file system, began shipping in January 2005. Xsan is a 64-bit cluster file
`system for Mac OS X that enables organizations to consolidate storage resources and provide multiple