Trademark Trial and Appeal Board Electronic Filing System. httgj/estta.usQto.gov
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`
`
`91204777
`
`Plaintiff
`
`Apple Inc.
`JOSEPH PETERSEN
`KILPATRICK TOWNSEND STOCKTON LLP
`31 WEST 52ND STREET, 14TH FLOOR
`NEW YORK, NY 10019
`UNITED STATES
`JPetersen@ki|town.com, A|Jones@ki|town.com, ARoach@ki|town.com,
`agarcia@ki|town.com, NYTrademarks@ki|town.com, tmadmin@ki|town.com
`Plaintiff's Notice of Reliance
`
`Allison Scott Roach
`
`JPetersen@ki|town.com, A|Jones@ki|town.com, ARoach@ki|town.com,
`agarcia@ki|town.com, NYTrademarks@ki|town.com, tmadmin@ki|town.com
`/Allison Scott Roachl
`
`1 1/04/201 3
`
`NOR—4.pdf(89444 bytes )
`[Part 1] Exh. to NOR—4.pdf(4524198 bytes)
`[Part 2] Exh. to NOR—4.pdf(3550819 bytes)
`
`Trademark Trial and Appeal Board Electronic Filing System. http://estta.uspto.gov
`ESTTA568918
`ESTTA Tracking number:
`11/04/2013
`
`Filing date:
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`91204777
`Plaintiff
`Apple Inc.
`JOSEPH PETERSEN
`KILPATRICK TOWNSEND STOCKTON LLP
`31 WEST 52ND STREET, 14TH FLOOR
`NEW YORK, NY 10019
`UNITED STATES
`JPetersen@kiltown.com, AlJones@kiltown.com, ARoach@kiltown.com,
`agarcia@kiltown.com, NYTrademarks@kiltown.com, tmadmin@kiltown.com
`Plaintiff's Notice of Reliance
`Allison Scott Roach
`JPetersen@kiltown.com, AlJones@kiltown.com, ARoach@kiltown.com,
`agarcia@kiltown.com, NYTrademarks@kiltown.com, tmadmin@kiltown.com
`/Allison Scott Roach/
`11/04/2013
`NOR-4.pdf(89444 bytes )
`[Part 1] Exh. to NOR-4.pdf(4524198 bytes )
`[Part 2] Exh. to NOR-4.pdf(3550819 bytes )
`
`Proceeding
`Party
`
`Correspondence
`Address
`
`Submission
`Filer's Name
`Filer's e-mail
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`Signature
`Date
`Attachments
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`

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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`
`In the Matter of Application Serial No. 85/379,097
`For the mark: CRAPPLE
`Filed: July 22, 2011
`Published: December 20, 2011
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`
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`---------------------------------------------------------X
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`APPLE INC.,
`
`:
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`: Opposition No. 91204777
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`Opposer,
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` v.
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`NINJA ENTERTAINMENT
`HOLDINGS, LLC,
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`Applicant.
`---------------------------------------------------------X
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`OPPOSER’S FOURTH NOTICE OF RELIANCE
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`Opposer Apple Inc. (“Apple”), pursuant to 37 C.F.R. § 2.122(e), submits of record in
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`connection with this opposition proceeding a certified copy of Apple’s Form 10-K for the fiscal
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`year that ended September 29, 2012, which qualifies as an official record of the Securities and
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`Exchange Commission. Raccioppi v. Apogee Inc., 47 U.S.P.Q.2d 1368, 1370 (T.T.A.B. 1998).
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`
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`This evidence is relevant to the issues of likelihood of confusion and dilution and shows,
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`among other things, the nature of the goods and services offered under Apple’s marks, the
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`number of retail locations, and the annual sales figures for goods and services offered under
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`Apple’s marks.
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`
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`A certified copy of Apple’s Form 10-K for the fiscal year that ended September 29, 2012
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`is attached hereto as Exhibit A.
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`
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`

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`Respectfully submitted,
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`KILPATRICK TOWNSEND & STOCKTON LLP
`
`
`
`
`
`By:
`
`
`
`
`/s/Allison Scott Roach
`Joseph Petersen
`1114 Avenue of the Americas
`New York, New York 10036
`Telephone: (212) 775-8700
`Facsimile: (212) 775-8800
`
`Alicia Grahn Jones
`Allison Scott Roach
`1100 Peachtree Street, Suite 2800
`Atlanta, Georgia 30309
`Telephone: (404) 815-6500
`Facsimile: (404) 815-6555
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`Attorneys for Opposer Apple Inc.
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`2
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`Dated: November 4, 2013
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`
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`
`In the Matter of Application Serial No. 85/379,097
`For the mark: CRAPPLE
`Filed: July 22, 2011
`Published: December 20, 2011
`
`
`Opposer,
`
`
` v.
`
`NINJA ENTERTAINMENT
`HOLDINGS, LLC,
`
`
`
`
`
`
`
`
`
`
`
`---------------------------------------------------------X
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`APPLE INC.,
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`:
`
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`: Opposition No. 91204777
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`:
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`Applicant.
`---------------------------------------------------------X
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`CERTIFICATE OF SERVICE
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`
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`This is to certify that a copy of the foregoing has been served on Ninja Entertainment
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`Holdings, LLC by depositing a copy with the United States Postal Service as First Class Mail,
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`postage prepaid, in an envelope addressed to:
`
`Daniel Kelman
`1934 Josephine Street
`Pittsburgh, Pennsylvania 15203
`
`
`This the 4th day of November, 2013.
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`/s/ Alberto Garcia
` Alberto Garcia
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`3
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`

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`EXHIBIT A
`
`EXHIBIT A
`
`
`
`

`
`
`
`UNITED STATES OF AMERICA
`
`SECURITIES AND EXCHANGE COMMISSION
`
`ATTESTATION
`
`I HEREBY ATTEST
`
`that:
`
`Attached is a copy ofForm 10—K, annual report, for the fiscal year ended
`September 29, 2012, received in this Commission on October 31, 2012, under
`the name ofApple Inc., File No. 000-10030, pursuant to the provisions of the
`Securities Exchange Act of I 934.
`
`
`
`on file in this Commissi'on
`
`October 28, 2013
`Date
`
`
`
`
`
`Larry Mills, Mana ment and Program Analyst
`
`is hereby certified that the Secretary of the U.S. Securities and
`It
`Exchange Commission, Washington, DC, which Commission was
`created by the Securities Exchange Act of 1934 (15 U.S.C. 78a et
`seq.) is official custodian of the records and files of said Commission,
`and all records and files created or established by the Federal Trade
`Commission pursuant to the provisions of the Securities Act of 1 933 and
`transferred to this Commission in accordance with Section 210 of the
`
`Securities Exchange Act of 1934, and was such official custodian at the
`time of executing the above attestation, and that he/she, and persons
`holding the positions of Deputy Secretary, Assistant Director, Records
`Officer, Branch Chief of Records Management, and the Program Analyst
`for the Records Officer, or anyone of them, are authorized to execute
`the above attestation.
`
`For the Commission
`
`ff
`
`Secretary
`
`:
`
`(8
`
`
`
`SEC 334 (9-12)
`
`

`
`
`
`Table of Contents
`
`
`
`(Mark One)
`
`UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`Washington, D.C. 20549
`
`Form 10—K
`
`ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`For the fiscal year ended September 29, 2012
`or
`
`Cl
`
`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
`
`APPLE INC.
`(Exact name of registrant as specified in its charter)
`
`California
`(State or other jurisdiction of incorporation or organization)
`I Infinite Loop
`
`Cupertino, California
`(Address of principal executive offices)
`
`94-2404110
`(I.R.S. Employer Identification No.)
`
`95014
`(Zip Code)
`
`Registrant’s telephone number, including area code: (408) 996-1010
`
`Securities registered pursuant to Section l2(b) of the Act:
`
`Common Stock, no par value
`(Title ofclass)
`
`The NASDAQ Stock Market LLC
`(Name of exchange on which registered)
`
`Securities registered pursuant to Section l2(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
`No El
`
`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 E] No
`
`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
`
`No El
`
`
`
`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
`
`No D
`
`Indicate by check mark if disclosure of delinquent filers pursuant to ltein 405 of Regulation S-K (section 229.405 of this chapter) is not contained herein, and V
`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 lO—l(. El
`
`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 l2b-2 of the Exchange Act.
`Large accelerated filer
`Accelerated filer
`Non-accelerated filer
`Smaller reporting company
`
`Cl (Do not check ifa smaller reporting company)
`
`El
`Cl
`
`Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
`Yes [II No
`
`The aggregate market value of the voting and non—voting stock held by non-affiliates of the registrant, as of'March 30, 2012, the last business day of the
`registrant’s most recently completed second fiscal quarter, was approximately $560,356,000,000 based upon the closing price reported for such date on the
`NASDAQ Stock Market LLC. Solely for purposes of this disclosure, shares of common stock held by executive officers and directors of the registrant as of such
`date have been excluded because such persons may be deemed to be affiliates. This determination of executive officers and directors as afiiliates is not
`necessarily a conclusive determination for any other purposes.
`
`940,692,000 shares of common stock were issued and outstanding as of October 19, 2012.
`
`

`
`DOCUMENTS INCORPORATED BY REFERENCE
`
`Portions of the registrant’s definitive proxy statement relating to its 2013 annual meeting of shareholders (the “2013 Proxy Statement”) are incorporated by
`reference into Part III of this Annual Report on Form 10-K where indicated. The 2013 Proxy Statement will be filed with the U.S. Securities and Exchange
`Commission within 120 days after the end of the fiscal year to which this report relates.
`
`

`
`
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`
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`(D‘<
`ll
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`
`
`Table of Contents
`
`The Business section and other parts ofthis Annual Report on Form I0—K ("Form I 0-K ”) contain forward—looking statements, within tlze meaning of'the Private
`Securities Litigation Reform Act ofI995, that involve risks and uncertainties. Many oftheforwara'—looking statements are located in “Management 's Discussion
`and Analysis of’Financial Condition and Results of" Operations. ” Forward-looking statements provide current expectations offuture events based on certain
`assumptions and include any statement that does not directly relate to any historical or currentfact. Forward-looking statements can also be identified by words
`such as "future," "anticipates,” “believes,” “estimates, " “expects,” “intends,” “plans, " "predicts," “will." “would," "could, ” "can. " "may," and similar
`terms. Forward~looking statements are not guarantees offuture 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 Part I. Item IA oft/tis
`Form 1 0~K under the heading “Risk Factors, " which are incorporated herein by reference. Each ofthe terms the “Company” and "Apple" as used herein refers
`collectively to Apple Inc. and its wholly—owned subsidiaries, unless otherwise stated. The Company assumes no obligation to revise or update any forward-
`looking statements for any reason, except as required by law.
`
`PARTI
`Item 1.
`
`Business
`
`Company Background
`The Company designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a
`variety of related software, services, peripherals, networking solutions, and third—party digital content and applications. The Company’s products and services
`include iPhone®, iPad®, Mac®, iPod®, Apple TV®, a portfolio of consumer and professional software applications, the iOS and OS X® operating systems,
`iCloud®, and a variety of accessory, service and support offerings. The Company also sells and delivers digital content and applications through the iTunes
`Store®, App Stores“, iBookstore3M, and Mac App Store. The Company sells its products worldwide through its retail stores, online stores, and direct sales force,
`as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In addition, the Company sells a variety of third-party
`iPhone, iPad, Mac and iPod compatible products, including application software, and various accessories, through its online and retail stores. The Company sells
`to consumers; small and mid-sized businesses (“SMB”); and education, enterprise and government customers. The Company’s fiscal year is the 52 or 53-week
`period that 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. The Company is a California corporation established in 1977.
`
`Business Strategy
`The Company is committed to bringing the best user experience to its customers through its innovative hardware, software, peripherals, and services. The
`Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to
`provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative design. The Company believes continual
`investment in research and development, marketing and advertising is critical to the development and sale of innovative products and technologies. As part of its
`strategy, the Company continues to expand its platform for the discovery and delivery of third-party digital content and applications through the iTunes Store. As
`part of the iTunes Store, the Company’s App Store and iBookstore allow customers to discover and download applications and books through either a Mac or
`Windows—based computer or through “iOS devices,” namely iPhone, iPad and iPod touch®. The Company’s Mac App Store allows customers to easily discover,
`download and install Mac applications. The Company also supports a community for the development of third-patty software and hardware products and digital
`content that complement the Company’s offerings. The Co1npany’s strategy also includes expanding its distribution network to effectively reach more customers
`and provide them with a high—quality sales and post-sales support experience.
`
`

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`Table of Contents
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`Consumer and Small and /I/lid-Sizer! Business
`
`The Company believes a high-quality buying experience with knowledgeable salespersons who can convey the value of the Company’s products and services
`greatly enhances its ability to attract and retain customers. The Company sells its products and resells third-party products in most of its major markets directly to
`consumers and SMBs through its retail and online stores. The Company has also invested in programs to enhance reseller sales by placing high quality Apple
`fixtures, merchandising materials and other resources within selected third-party reseller locations. Through the Apple Premium Reseller Program, certain third-
`party resellers focus on the Apple platform by providing a high level of product expertise, integration and support services.
`
`The Company’s retail stores are typically located at high—traffic locations in quality shopping malls and urban shopping districts. By operating its own stores and
`locating them in desirable hi gh-traffc locations the Company is better positioned to ensure at high quality customer buying experience and attract new customers.
`The stores are designed to simplify and enhance the presentation and marketing of the Company’s products and related solutions. To that end, retail store
`configurations have evolved into various sizes to accommodate market-specific demands. The Company believes providing direct contact with its customers is
`an effective way to demonstrate the advantages of its products over those of its competitors. The stores employ experienced and knowledgeable personnel who
`provide product advice, service and training. The stores offer a wide selection of third-party hardware, software, and other accessories and peripherals that
`complement the Company’s products.
`
`Education
`
`The Company is committed to delivering solutions 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 and has designed a range of products, services and programs to address the needs of
`education customers. The Company also supports mobile learning and real-time distribution of, and access to, education related materials through iTunes U‘‘’, a
`platform that allows students and teachers to share and distribute educational media online. The Company sells its products to the education market through its
`direct sales force, select third~party resellers and its online and retail stores.
`
`Enterprise and Government
`
`The Company also sells its hardware and software products to enterprise and government customers in each of its geographic segments. The Company’s
`products are deployed in these markets because of their performance, productivity, ease of use and seamless integration into information technology
`environments. The Company’s products are compatible with thousands of third-party business applications and services, and its tools enable the development
`and secure deployment of custom applications as well as remote device administration.
`
`Business Organization
`
`the Company determined its reportable operating segments, which are
`The Company manages its business primarily on a geographic basis. Accordingly,
`generally based on the nature and location of its customers, to be the Americas, Europe, Japan, Asia-Pacific and Retail. The results of the Americas, Europe,
`Japan and Asia-Pacific segments do not include 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—Pacifrc segment includes Australia and Asian countries, other than Japan.
`The Retail segment operates Apple retail stores in 13 countries, including the U.S. Each 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, ltern 7 of this Form 10-K under the subheading’
`“Segment Operating Performance,” and in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 8, “Segment Information
`and Geographic Data.”
`
`

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`
`Tnble of Contents
`
`Products
`
`
`
`The Company offers a range of mobile communication and media devices, personal computing products, and portable digital music players, as well as a variety
`of related software, services, peripherals, networking solutions and third-party hardware and software products. In addition, the Company offers .its own software
`products, including iOS, the Company’s mobile operating system; OS X, the Company’s Mac operating system; and server and application software. The
`Company’s primary products are discussed below.
`
`iPhone
`
`iPhone combines a mobile phone, an iPod, and an Internet communications device in a single handheld product. Based on the Company’s Multi-Touchm user
`interface, iPhone features desktop—class email, web browsing, searching, and maps and is compatible with both Mac and Windows-based computers. iPhone
`automatically syncs content from users’ iTunes libraries, as well as contacts, bookmarks, and email accounts. iPhone allows customers to access the iTunes Store
`to download audio and video files, as well as a variety of other digital content and applications. In September 2012, the Company launched iPhone 5, its latest
`version of iPhone. In addition to the Company’s own iPhone accessories, third-party iPhone compatible accessories are available through the Company’s online
`and retail stores and from third parties.
`
`
`
`iPad
`
`iPad is a multi—purpose mobile device for browsing the web, reading and sending email, viewing photos, watching videos, listening to music, playing games,
`reading e-books and more. iPad is based on the Company’s Multi-Touch technology and allows customers to connect with their applications and content in a
`more interactive way. iPad allows customers to access the iTunes Store to download audio and video files, as well as a variety of other digital content and
`applications. In March 2012, the Company launched the new iPad, its third generation iPad, and in October 2012, the Company announced its fourth generation
`iPad and iPad mini, which are expected to be available in November 2012. In addition to the Company’s own iPad accessories, third-party iPad compatible
`accessories are available through the Company’s online and retail stores and from third parties.
`
`Mac
`
`The Company offers a range of personal computing products including desktop and portable computers, related devices and peripherals, and third-party hardware
`products. The Company’s Mac desktop and portable systems feature Intel microprocessors, the OS X operating system and the iLife® suite of software for
`creation and management of digital photography, music, movies, DVDs and websites.
`
`The Company’s desktop computers include iMac®, Mac Pro‘? and Mac mini. The Company’s portable computers include MacBook Pro® and MacBook AM“.
`
`iPod
`
`The Co1npany’s iPod line of portable digital music and media players includes iPod touch, iPod nano®, iPod shuffle® and iPod classic®. All iPods work with
`iTunes. In addition to the Company’s own iPod accessories, third-party iPod-compatible accessories are available through the Company’s online and retail stores
`and from third parties.
`
`The iPod touch, based on iOS, is a flash-memory-based iPod with a widescreen Retina” display, a Multi-Touch user interface, and built-in iSight® camera. iPod
`touch allows customers to access the iTunes Store to download audio and video content, as well as a variety of digital applications. The iPod nano is a flash-
`memory-based iPod that features the Company’s Multi-Touch interface allowing customers to navigate their music collection by tapping or swiping the display
`and built-in Bluetooth for wireless listening. The iPod shuffle is a flash—memory-
`3
`
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`Table of Contents
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`based iPod that features a clickable control pad to control music playback and VoiceOver technology enabling customers to hear song titles, artists and playlist
`names. The iPod classic is a hard-drive based portable digital music and video player.
`
`iTunes“"”
`
`iTunes is an application that supports the purchase, download, organization and playback of digital audio and video files and is available for both Mac and
`Windows-based computers. iTunes features integration with iCloud, AirPlay® wireless music playback, Genius Mixes, Home Sharing, and syncing functionality
`with iOS devices.
`
`iTunes is integrated with the iTunes Store, a service that allows customers to discover, purchase, rent, and download digital content and applications. The iTunes
`Store includes the App Store and iBookstore. The App Store allows customers to discover and download applications, and the iBookstore features electronic
`books from major and independent publishers and allows customers to preview and buy books for their iOS devices. Customers can access the App Store
`through either a Mac or Windows-based computer or through an iOS device. The iBookstore is accessed through the iBooks® application on an iOS device.
`
`Mac App Store
`The Mac App Store allows customers to discover, download and install Mac applications. The Mac App Store offers applications in education, games, graphics
`and design, lifestyle, productivity, utilities and other categories. The Company’s OS X operating system software and its iLife, iWork® and other application
`sottware titles are also available on the Mac App Store.
`
`iCloud
`
`iCloud is the Company’s cloud service, which stores music, photos, applications, contacts, calendars, and documents and wirelessly pushes them to multiple iOS
`devices, Mac and Windows-based computers. iCloud’s features include iTunes in the Cloud, Photo Stream, Documents in the Cloud, Contacts, Calendar,
`Mail, automatic downloads and purchase history for applications and iBooks, and iCloud Backup. Users can sign up for free access to iCloud using a device
`running qualifying versions of iOS or OS X.
`
`Software Products
`The Company offers a range of software products for consumers and for SMB, education, enterprise and government customers, including the Company’s iOS
`and OS X operating system software; server software; professional application software; and consumer, education, and business oriented application software.
`
`Operating System Software
`iOS
`
`iOS is the Company’s mobile operating system that serves as the foundation for iOS devices. In September 2012, the Company released iOS 6, the latest version
`of its mobile operating system. iOS supports iCloud and includes features such as Notification Center, a way to view and manage notifications in one place;
`iMessage”", a messaging service that allows users to send text messages, photos and videos between iOS devices; and Maps, with tum-by—turn navigation. iOS
`supports Siri’*°, a voice activated intelligent assistant, which is available on qualifying iOS devices.
`4
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`Table of Contents
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`OS X
`OS X, the Company’s Mac operating system, is built on an open—source UNIX-based foundation. OS X Mountain Lion is the ninth major release of OS X and
`became available in July 2012. OS X Mountain Lion includes iCloud integration, Notification Center, iMessage, and system-wide support for full screen
`applications.
`
`Application Software
`iLife
`iDVD®,
`iMovie®,
`iLife features iPhoto®,
`lifestyle application suite included with all Mac computers.
`iLife is the Company’s consumer~oriented digital
`GarageBand“°, and iWebTM. iPhoto is the Company’s consumer—oriented digital photo application and iMovie is the Company’s consumer—oriented digital video
`editing software application. iDVD is the Company’s consumer—oriented software application that enables customers to turn iMovie files, QuickTime files, and
`digital pictures into interactive DVDs. GarageBand is the Company’s consu1ner—oriented music creation application that allows customers to play, record and
`create music. iWeb allows customers to create online photo albums, blogs and podcasts, and to customize websites using editing tools.
`
`iWork
`
`e, present, and publish documents, presentations, and spreadsheets. iWork
`iWork is the Company’s integrated productivity suite designed to help users creat
`d Numbers® for spreadsheets. The Company also has a Multi-Touch version
`includes Pages® for word processing and page layout, Keynote® for presentations, an
`of each iWork application designed specifically for use on iOS devices.
`
`Other Application Software
`The Company also sells various other application software, including Final Cut Pro®, Logic Studio®, Logic® Pro, and its FileMaker® Pro database software.
`
`Displays & Peripheral Products
`s a variety of Apple-branded and third-party
`Apple LED Cinema Display” and Thunderbolt Display. The Company also sell digital video and still cameras, and various
`The Company manufactures the
`Mac-compatible and iOS-compatible peripheral products, including printers, storage devices, computer memory,
`other computing products and supplies.
`
`Apple TV
`Apple TV allows customers to watch movies and television shows on their high defm
`as music, photos, videos, and podcasts from a Mac or Windows-based computer can a
`
`ition television. Content from iTunes, Netflix, YouTube, and Flickr as well
`lso be wirelessly streamed to a television through Apple TV.
`
`Product Support and Services
`clude assistance that is built into software products, printed and electronic
`AppleCare® offers a range of support options for the Company’s customers. These in
`product manuals, online support including comprehensive product information as well as technical assistance, the AppleCare Protection Plan (“APP”) and the
`AppleCare+ Protection Plan (“APP+”). APP is a fee—based service that typically includes two to three years of phone support, hardware repairs and dedicated
`web-based support resources. APP+ is a fee-based service available in certain countries for iPhone and iPad. APP-F offers coverage for two instances of
`accidental damage in addition to the services offered by APP.
`
`

`
`
`
`The markets for the Company’s products and services are highly competitive and the Company is confronted by aggressive competition in all areas of its
`business. These markets are characterized by frequent product introductions and rapid technological advances that have substantially increased the capabilities
`and use of mobile communication and media devices, personal computers, and other digital electronic devices. The Company’s competitors who sell mobile
`devices and personal computers based on other operating systems have aggressively cut prices and lowered their product margins to gain or maintain market
`share. The Company’s financial condition and operating results can be adversely affected by these and other industry-wide downward pressures on gross
`margins. Principal competitive factors important to the Company include price, product features, relative price/performance, product quality and reliability,
`design innovation, a strong third—party software and peripherals ecosystem, marketing and distribution capability, service and support, and corporate reputation.
`The Company is focused on expanding its market opportunities related to personal computers and mobile communication and media devices. These markets are
`highly competitive and include several
`large, well-funded and experienced participants. The Company expects competition in these markets to intensify
`significantly as competitors attempt to imitate some of the features of the Company’s products and applications within their own products or, alternatively,
`collaborate with each other to offer solutions that are more competitive than those they currently offer. These markets are characterized by aggressive pricing
`practices,
`frequent product
`introductions, evolving design approaches and technologies, rapid adoption of technological and product advancements by
`competitors, and price sensitivity on the part of consumers and businesses.
`
`The Company’s digital content services have faced significant competition from other companies promoting their own digital music and content products and
`services, including those offering free peer-to-peer music and video services.
`
`The Company’s future financial condition and operating results depend on the Company’s ability to continue to develop and offer new innovative products and
`services in each of the markets in which it competes. The Company believes it offers superior innovation and integration of the entire solution including the
`hardware (iPhone, iPad, Mac, and iPod), software (iTunes), online services (iCloud), and distribution of digital content and applications (iTunes Store, App
`Store, iBookstore and Mac App Store). Some of the Company’s current and potential competitors have substantial resources and may be able to provide such
`products and services at little or no profit or even at agloss to compete with the Company’s offerings.
`6
`
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`
`Table of Contents
`
`Markets and Distribution
`
`The Company’s customers are primarily in the consumer, SMB, education, enterprise and government markets. The Company uses a variety of direct and
`indirect distribution channels, such as its retail stores, online stores, and direct sales force, and Ihird—pa11y cellular network carriers, wholesalers, retailers, and
`value-added resellers. The Company believes that sales of its innovative and differentiated products are enhanced by knowledgeable salespersons who can
`convey the value of the hardware and software integration, and demonstrate the unique solutions that are avail