BULKY DOCUMENTS
`(Exceeds 300 pages)
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`Proceeding] Serial No: 9 1 176027
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`Filed: 1- 13-09
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`-Title: opposers motion for summary judgment
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`Part 2 of 5
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`Processed by Curtis Puryear
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`QuickLinks
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`Exhibit 21
`§_UBSXDIARIES OF APPLE INC.
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`Source:APPLE INC, 10-K, November 15, 2007
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`Exhibit 23.1
`
`The Board of Directors
`Apple lnc.:
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`Consent oflndependent Registered Public Accounting Firm
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`We consent to the incorporation by reference in the registration statements on Forms S-8 (Nos. 2-70449, 2-77563, 2-85095, 33-00866, 33-23650, 33-31075,
`33-40877, 3347596, 33-57092, 33-57080, 33-53873, 33-53879, 33-53895, 33-60279, 33-60281, 333-07437, 333-23719, 333-23725, 333-60455, 333-82603,
`333-93471, 333-37012, 333-52116, 333-61276, 333-70506, 333-75930, 333-102184, 333-106421, 333-125148, and 333-146026) and the registration statements
`on Fonns S-3 (Nos. 33-23317, 33-29578, and 33-62310) ofApple lnc. ofour reports dated November 15, 2007 with respect to the consolidated balance sheets of
`Apple Inc. and subsidiaries as of September 29, 2007 and September 30, 2006, and the related consolidated statements of operations, shareholders’ equity, and
`cash flows for each of the years in the three-ycar period ended September 29, 2007, and the effectiveness of internal control over financial reporting as of
`September 29, 2007, which reports appear in the September 29, 2007 annual report on Form 10-K of Apple Inc.
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`As discussed in Note 1 to the Consolidated Financial Statements, the Company adopted the provisions of Statement of Financial Accounting Standards
`No. 123R, Share-Based Payment, on September 25, 2005.
`
`/s/ KPMG LLP
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`Mountain View, California
`November I5, 2007
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`Source: APPLE INC, 10-K, November 15, 2007
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`Exhibit 23.1
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`Consent of Ind_<_:pcndcnt Registered Public Accounting Firm
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`Source: APPLE INC, 10-K, November 15, 2007
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`1, Steven P. Jobs, certify that:
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`CERTIFICATIONS
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`Exhibit3I.I
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`I.
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`2.
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`3.
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`4.
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`5.
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`I have reviewed this annual report on Form 10-K of Apple Inc.;
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`_
`Based on my knowledge, this report does not contain any untme statement of a material fact or omit to state a material fact necessary to make the
`statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
`repon;
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`Based on my knowledge, the financial statements, and other financial infonnation included in this report, fairly present in all material respects the
`financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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`The registrant's other certifying officcr(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
`Exchange Act Rules 13a-l5(e) and l5d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-l 5(f) and
`l5d-15(0) for the registrant and have:
`
`.
`.
`.
`Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
`to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within
`those entities, particularly during the period in which this report is being prepared;
`
`(1?)
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`(C)
`
`M)
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`Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
`supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
`external purposes in accordance with generally accepted accounting principles;
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`Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
`effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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`_
`Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most
`recent fiscal quarter (the registrant's fourth fiscal quarter in the ease of an annual report) that has materially affected, or is reasonably likely
`to materially affect, the registrant's internal control over financial reporting; and
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`The registrant's other certifying officcr(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
`registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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`(0)
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`(b)
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`All significant deficiencies and material weaknesses in the design or operation of intemal control over financial reporting which are
`reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
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`Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal
`control over financial reporting.
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`Date: November 15, 2007
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`Steven P. Jobs
`Chief Executive Offiecr
`
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`By:
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`/s/ STEVEN P. JOBS
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`Source: APPLE INC, 10-K, November 15, 2007
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`Exhibit 3] .1
`CERTIFICATIONS
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`Source: APPLE INC, 10—K, November 15, 2007
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`CERTIFICATIONS
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`I, Peter Oppenheimer, certify that:
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`1.
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`I have reviewed this annual report on Fonn 10-K of Apple lnc.;
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`Exhibit 31.2
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`Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
`statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
`report;
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`Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
`financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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`The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
`Exchange Act Rules l3a—l5(e) and l5d-l5(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-l 5(1) and
`l5d-15(0) for the registrant and have:
`
`(0)
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`(17)
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`(6)
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`(0')
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`Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
`to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within
`those entities, particularly during the period in which this report is being prepared;
`
`.
`Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
`supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
`external purposes in accordance with generally accepted accounting principles;
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`Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
`effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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`Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most
`recent fiscal quarter (the registrant's fourth fiscal quarter in the ease of an annual report) that has materially affected, or is reasonably likely
`to materially affect, the registrant's internal control over financial reporting; and
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`The registrant's other certifying officer(s) and l have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
`registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
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`(a)
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`(b)
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`All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
`reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
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`Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal
`control over financial reporting.
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`Date: November 15, 2007
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`Peter Oppenheimer
`Senior Vice President and
`Chief Financial Officer
`
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`By:
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`/s/ PETER OPPENHEIMER
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`Source: APPLE INC, 10-K, November 15, 2007
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`QuickLinks
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`Exhibit 31.2
`CERTIFICATIONS
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`Source: APPLE INC, 10-K, November 15, 2007
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`

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`QuiekLink.
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`CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
`PURSUANT TO
`18 U.S.C. SECTION 1350,
`AS ADOPTED PURSUANT TO
`SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
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`Exhibit 32.1
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`I , Steven P. Jobs, certify, pursuant to l8 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Annual Report of
`Apple Inc. on Fonn l0—K for the fiscal year ended September 29, 2007 fully complies with the requirements of Section l3(a) or l5(d) ofthc Securities Exchange
`Act of 1934 and that information contained in such Form I0-K fairly presents in all material respects the financial condition and results of operations of
`Apple Inc.
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`November I5, 2007
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`By:
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`/s/ STEVEN P. JOBS
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`Steven P. Jobs
`Chief Executive Officer
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`I , Peter Oppenheimer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Annual Report
`of Apple Inc. on Form 10-K for the fiscal year ended September 29, 2007 fully complies with the requirements of Section l3(a) or 15(d) of the Securities
`Exchange Act of 1934 and that information contained in such Form 10-K fairly presents in all material respects the financial condition and results of operations
`ofApple Inc.
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`November 15, 2007
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`By:
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`/s/ PETER OPPENHEIMER
`
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`Peter Oppenheimer
`Senior Vice President and Chief Financial Officer
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`A signed original of this written statement required by Section 906 has been provided to Apple lnc. and will be retained by Apple Inc. and furnished to the
`Securities and Exchange Commission or its staff upon request.
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`Source: APPLE INC, 10—K, November 15, 2007
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`CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO I8 U.S.C. SECTION I350 AS ADOPTED
`PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
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`Created by l0KWizard www.IOKWizard.com
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`Source: APPLE INC, 10-K, November 15, 2007
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`11’ 19,?‘YY.‘1,.Z%?~1.’\J??
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`FORM 10-K
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`APPLE INC - AAPL
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`Filed: December 03, 2004 (period: September 25, 2004)
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`Annual report which provides a comprehensive overview of the company for the past year
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`

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` Table of Contents
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`10-K — 10-K
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`PART I
`
`Item 1
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`Item 2.
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`Item 3.
`Item 4.
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`Business
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`Properties
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`Legal Proceedings
`Submission of Matters to a Vote of Security Holders
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`PART II
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`Item 5.
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`Item 6.
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`Item 8
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`Item 7.
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`Item 7A.
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`Item 8.
`Item 9.
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`Market for the Registrant's Common Eguity, Related Shareholder
`Matters and Issuer Purchases of Eguity Securities
`Selected Financial Data
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`of this Form 10-K in order to fully understand factors that may affect the
`comparability of the information presented below.
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`Management's Discussion and Analysis of Financial Condition and
`Results of Operations
`Quantitative and Qualitative Disclosures About Market Risk
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`_
`Financial Statements and Supplementam Data
`Changes in and Disagreements with Accountants on Accounting and
`Financial Disclosure
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`Item 9A.
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`Controls and Procedures
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`PART III
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`Item 10.
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`Item 11.
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`Item 12.
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`Item 13.
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`Item 14.
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`PART IV
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`Directors and Executive Officers of the Registrant
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`Executive Compensation
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`Security Ownership of Certain Beneficial Owners and Management
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`Certain Relationships and Related Transactions
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`Principal Accountant Fees and Services
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`Item 15.
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`Exhibits Financial Statement Schedules.
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`SIGNATURES
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`EX-21 (EXHIBIT 21)
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`EX-23.1 (EXHIBIT 23.11
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`EX—31.1 (EXHIBIT 31.1l
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`EX—3’I.2 (EXHIBIT 31.2)
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`

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`EX-32.1 (EXHIBIT 32.1}
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`UNITED STATES
`
`SECURITIES AND EXCHANGE COMMISSION
`Washington, D.C. 20549
`
`Form 10—K
`
`(Mark One)
`
`IX
`
`ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
`1934
`
`For the fiscal year ended September 25, 2004
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`OR
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`E]
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`TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
`OF 1934
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`For the transition period from
`
`to
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`Commission file number 0-10030
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`APPLE COMPUTER, INC.
`(Exact name of registrant as specified in its charter)
`
`CALIFORNIA
`(State or other jurisdiction
`ofincorporation or organization)
`
`942404110
`(I.R.S. Employer
`Identification No.)
`
`I Infinite 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 l2(b) of the Act: None
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`«
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`Securities registered pursuant to Section l2(g) of the Act:
`Common Stock, no par value
`(Titles of classes)
`
`Indicate by check mark whether the registrant (I) has filed all reports required to be filed by Section I3 or I5(d) of the Securities Exchange Act of I934 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 D
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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 to Part III of this
`Form l0~I( or any amendment to this Form I0-K.
`[9
`
`Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule I2b-2 of the Act). Yes I3 No C]
`
`The aggregate market value of the voting and non—voting stock held by non-affiliates of the registrant, as of March 27, 2004, was approximately $8,336,330,708
`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 officcr or affiliate status is not necessarily a conclusive determination for
`other purposes.
`
`402,057,856 shares of Common Stock Issued and Outstanding as of November I9, 2004
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`
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`Source: APPLE INC, 10—K, December 03, 2004
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`

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`PA RT l
`
`The Business section and other parts ofthis Annual Report on Form I 0-K ("Form I 0-K ") contain forward—looking statements that involve risks and
`uncertainties. Many ofthe fotward~looking statements are located in "Management's Discussion and A nalysis ofFinancial 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 offuture performance and the Company's actual results may differ significantlyfrom 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 ofthis Form 1 0-K. The Company assumes no obligation to revise or update any
`forward-looking statementsfor any reason, except as required by law.
`
`Item 1. Business
`
`Company Background
`
`Apple Computer, Inc. ("Applc" or the "Company") was incorporated under the laws ofthe State of California on January 3, I977. 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 ofthird-party music and audio books.
`The Company's products and services include the Macintosh line ofdesktop and notebook computers, the iPod digital music player, the Xscrvc server and
`Xscrvc RAID storage products, a portfolio ofeonsumcr and professional software applications, the Mac OS X operating system, the online iTunes Music Store, a
`portfolio of peripherals that support and enhance the Macintosh and iPod product lines, and a variety ofothcr 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. In
`addition, the Company sells a variety ofthird-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 video 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 infonnation presented in this Fonn 10—K is based on the Company's fiscal calendar.
`
`Business Strategy
`
`Apple is committed to bringing the best personal computing and music experience to students, educators, creative professionals, businesses and consumers
`around the world through its innovative hardware, software, peripherals and lntcmet offerings. The Company‘s business strategy leverages its unique ability,
`through the design and development ofits own operating system, hardware and many software applications and technologies, to bring to its customers around the
`world meaningful 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, and peripherals, the Company continues to capitalize on the convergence of digital consumer electronics and
`the computer by creating product innovations like the iPod and iTunes Music Store. The Company has also invested in new product areas such as racl<—mount
`servers, RAID storage systems and wireless technologies. The Company's strategy also includes expanding its distribution network to effectively reach more of
`its targeted customers.
`
`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 iPod digital music players, personal digital assistants, cellular phones, digital still and movie cameras, CD
`
`Source: APPLE INC, 10~K. December 03, 2004
`
`

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`v to run complex applications, possess a
`5. The attributes of the personal computer, including it‘
`and DVD players, and other consumer electronic
`.ip|e ways and at varying speeds, can
`nexpensive storage, and easily connect to the lntemet l
`high quality user interface, contain large and relat
`individually add value to these devices and interconnect them as well. Apple is the only company in the personal computer industry that controls the design and
`development of the entire personal eomputer—from the hardware and operating system to sophisticated applications. Apple provides innovative industrial
`design, intuitive ease-of—usc, and built-in networking, graphics, and multimedia capabilities. Thus, the Company is uniquely positioned to offer integrated 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.
`
`Expanded Distribution
`
`The Company believes a high quality buying experience with knowledgeable salcspersons, who can convey the value of the Company's products and services, is
`critical to attracting and retaining customers. As such, in addition to expanding its indirect distribution channels, the Company has expanded its product
`distribution strategy to include its own retail locations, Apple online stores worldwide, and the Apple Sales Consultant Program. 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 stores
`in the U.S. and internationally, or through one ofits onlinc stores around the world. The Company has also invested in programs like the Apple Sales Consultant
`Program, which is designed to enhance reseller sales by the placement of Apple badged employees at selected third-party reseller locations. The Company
`believes enabling a direct interface with its targeted cnd customer provides an efficient means to effectively demonstrate the advantages of the Company's
`Macintosh and other products over those of its competitors. For certain ofits consumer electronic products, including the iPod product family, the Company has
`also significantly expanded the points of distribution in order to make available its products at locations where its customers shop.
`
`Since inception of its retail initiative in 200l, the Company has opened 84 retail stores in the U.S. and 2 intemational stores in Tokyo and Osaka, Japan through
`the end of fiscal year 2004. During the first quarter of 2005, the Company anticipates opening l4 additional stores, and expects to exit the calendar year at
`approximately 100 stores. The Company has typically located its stores at high traffic locations in quality shopping malls and urban shopping districts.
`Approximately half of the stores expected to open during the first quarter of 2005 are in the new "mini“ store design, which is the Company's smallest store
`fonnat to date, allowing them to be placed in a variety of new locations to introduce the Company's products to even more customers. The Company also opened
`its third international store in London, England during the first quarter of 2005.
`
`One of the 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 platfonn from competing operating system platforms. 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 Apple 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 and software products selected to complement the Company's own products. 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. Apple retail stores host customer events and free
`
`2
`
`Source: APPLE INC, 10«K, December 03, 2004
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`

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`classes, including the popular "Getting Started" class, and have brought back the concept of customer service with innovations like the Genius Bar.
`
`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 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. A
`range of products and services is designed by the Company 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, including the eMacT"" and the iBook®, video editing solutions,
`wireless networking capabilities, student information systems, one—to-one leaming solutions, and high-quality curriculum and professional development
`solutions.
`
`Creative Professionals
`
`Creative pro fcssionals 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 perfonnancc 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. 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 third-party
`developers. The Company also offers various software solutions to meet the needs of its creative customers, many of which are described below.
`
`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 segment includes both North and South America, except for the activities of the Company's Retail segment. The Europe
`segment includes European countries as well as the Middle East and Africa. The Japan segment includes only Japan and excludes revenue from the Company's
`own retail stores in Japan, which is included in the Company's Retail segment. The Retail segment currently operates Apple-owned retail stores in the U.S., Japan
`and England. 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 l0—K under the heading "Segment Operating Performance," and in Part II, Item 8 of
`this Form 10K in the Notes to Consolidated Financial Statements at Note 1 1, "Segment lnformation and Geographic Data."
`
`Hardware Products
`
`The Company offers a range of personal computing products including desktop and notebook personal computers, related devices and peripherals, 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 and storage systems, features the Company's Mac OS® X
`
`3
`
`Source: APPLE lNC, 10-K, December 03, 2004
`
`

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`Version 10.3 "Panther" and iLife® suite of softwa
`
`digital photography, music, movies, and music creatior
`
`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 8GB, and advanced 64-bit computation while also running existing 32-bit applications natively. The Power Mac G5 product line comes in four
`processor cont'igurations—singlc 1.8GHz, dual l.8G Hz, dual 2.0GHz and dual 2.5GHz. All Power Mac G5 desktops feature a SuperDriveT“ and either the
`NVIDIA Gel-‘oreeFX 5200 Ultra or the ATI Radeon 9600 XT graphics card. In addition, all Power Mac G5 desktops deliver connectivity and high-performance
`input/output (l/O), including Gigabit Ethernet, FireWire® 800 and FireWire 400 ports, USB 2.0 ports, optical digital audio input and output, built-in support for
`54 Mbps AirPor1® Extreme wireless networking, and optional Bluetooth connectivity.
`
`Xserve® and Xserve RAID Storage System
`
`Xservc, the Company's first rack-mount server product, was designed for simple setup and remote management of intensive l/O applications such as digital
`video, high-resolution digital imagery, and large databases. In January 2004, the Company announced Xservc G5, which is available with either a single or dual
`2.0 GHZ PowerPC G5 processor. Xservc G5 includes a system controller with up to 8GB of PC3200 error correcting code memory; three hot—plug Serial ATA
`drive modules that deliver up to 750GB ofstorage; and dual on-board Gigabit Ethernet for high-performance networking. In January 2004, the Company also
`introduced its Xserve RAID storage system, a 3U high-availability rack storage system, along with support for Windows and Linux-based computing
`environments. In October 2004, the Company updated its Xserve RAID storage system to deliver 5.6 terabytes of storage capacity and also expanded support for
`heterogeneous environments. The dual independent RAID controllers with 5l2MB cache per controller offer sustained throughput of over 380MBps—~high
`enough to support two streams ofuncompressed l0—bit HD video editing using protected RAID level 5.
`
`PowerBook®
`
`The PowerBook family of portable computers is designed to meet the mobile computing needs of professionals and advanced consumer users. ln April 2004, the
`Company updated its PowerBook G4 notebooks with faster PowerPC G4 processors. Both the 15-inch and l7-inch PowerBook G4 offer up to a 1.5 GHZ
`PowerPC G4 processor, an available SuperDrive and the ATI Mobility Radeon 9700 graphics processor. The l2-inch PowerBook G4 features a l.33 GHZ
`PowerPC processor, an available SuperDrivc, and NVIDIA GeForce FX Go5200 graphics. Every PowerBook G4 notebook comes with built-in AirPort Extreme
`wireless networking, an intemal Bluetooth module for wireless connectivity, as well as a full complement of I/O ports including Firewire 400, USB 2.0., a
`built-in 56K v.92 modem and Ethernet (10/l OOBASE-T), for connectivity to a wide range of peripherals. The l5-inch and l7-inch PowerBook G4 models also
`include built-in Gigabit Ethernet and Firewirc 800.
`
`iMac®
`
`The iMae line of desktop computers is targeted to consumer and education markets. In August 2004, the Company introduced the iMac® G5, featuring the
`PowerPC G5 processor and a design that integrates the entire computer into the flat panel display. The line offers l7- or 20-inch active matrix widescreen LCDs
`and PowerPC G5 processors running up to 1.8 GHZ. The l7—ineh models come with either a 1.8 GHZ PowerPC G5 processor and a SuperDrivc, or a |.6 Gl-lz
`PowerPC G5 processor and a Combo drive. The 20-inch model has a 1.8 GHz PowerPC G5 processor and a SuperDrivc, The iMac G5 offers up to a 600 MHZ
`front—side bus, 400 MHz DDR memory expandable to 2GB, AGP 8X graphics and 7200 rpm Serial ATA drives holding up to 250GB. The iMac G5 comes
`standard with NVIDIA graphics with dedicated video memory. The iMac G5 desktops offer a total of five USB ports (three USB 2.0) and two
`
`4
`
`Source: APPLE INC, 10—K, December 03. 2004
`
`

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`FireWire® 400 ports, an optional internal Bluetoo’
`wireless networking, and also includes built—in Etl.
`
`lule, a built-in antenna and card s