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TableofContents
UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
Form10-K 
(MarkOne)
x
ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934ForthefiscalyearendedSeptember27,2008or
®
TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934ForthetransitionperiodfromtoCommissionfilenumber:000-10030
APPLEINC.
(Exactnameofregistrantasspecifiedinitscharter)
California
94-2404110
(Stateorotherjurisdictionofincorporationororganization)
(I.R.S.Employer IdentificationNo.)
1InfiniteLoopCupertino,California
95014
(Addressofprincipalexecutiveoffices)
(ZipCode)Registrant?stelephonenumber,includingareacode:
(408)996-1010
SecuritiesregisteredpursuanttoSection12(b)oftheAct:
CommonStock,noparvalue
TheNASDAQGlobalSelectMarket(Titleofclass)
(Nameofexchangeonwhichregistered)SecuritiesregisteredpursuanttoSection12(g)oftheAct:None
Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes
x
No
®
IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.Yes
®
No
x
Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes
x
No
®
IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-K(section229.405ofthischapter)isnotcontainedherein,andwillnotbecontained,tothebestoftheregistrant?sknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.
x
Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,orasmallerreportingcompany.Seethedefinitionsof?largeacceleratedfiler,??acceleratedfiler?and?smallerreportingcompany?inRule12b-2oftheExchangeAct.
Largeacceleratedfiler
x
Acceleratedfiler 
®
 Non-acceleratedfiler
®
(Donotcheckifsmallerreportingcompany)
SmallerReportingCompany
®
Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).Yes
®
No
x
Theaggregatemarketvalueofthevotingandnon-votingstockheldbynon-affiliatesoftheregistrant,asofMarch29,2008,wasapproximately$118,441,000,000basedupontheclosingpricereportedforsuchdateontheNASDAQGlobalSelectMarket.Forpurposesof thisdisclosure,sharesofcommonstockheldbypersonswhoholdmorethan5%oftheoutstandingsharesofcommonstockandsharesheld byexecutiveofficersanddirectorsoftheregistranthavebeenexcludedbecausesuchpersonsmaybedeemedtobeaffiliates.Thisdeterminationofexecutiveofficeroraffiliatestatusisnotnecessarilyaconclusivedeterminationforotherpurposes.888,935,123sharesofCommonStockIssuedandOutstandingasofOctober24,2008
DOCUMENTSINCORPORATEDBYREFERENCE
(1)Portionsoftheregistrant?sdefinitiveProxyStatementrelatingtoits2009AnnualMeetingofShareholders,tobeheldonFebruary25,2009,areincorporatedbyreferenceintoPartIIIofthisAnnualReportonForm10-Kwhereindicated.
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TableofContents
TheBusinesssectionandotherpartsofthisAnnualReportonForm10-K(?Form10-K?)containforward-lookingstatementsthatinvolverisksanduncertainties.Manyoftheforward-lookingstatementsarelocatedin?Management?sDiscussionandAnalysisofFinancial ConditionandResultsofOperations.?Forward-lookingstatementsprovidecurrentexpectationsoffutureeventsbasedoncertainassumptionsandincludeanystatementthatdoesnotdirectlyrelatetoanyhistoricalorcurrentfact.Forward-lookingstatementscanalsobeidentifiedbywordssuchas?anticipates,??believes,??estimates,??expects,??intends,??plans,??predicts,?andsimilarterms. Forward-lookingstatementsarenotguaranteesoffutureperformanceandtheCompany?sactualresultsmaydiffersignificantlyfromtheresultsdiscussedintheforward-lookingstatements.Factorsthatmightcausesuchdifferencesinclude,butarenotlimitedto,thosediscussedinthesubsectionentitled?RiskFactors?underPartI,Item1AofthisForm10-K,whichareincorporatedhereinbyreference.TheCompanyassumesnoobligationtoreviseorupdateanyforward-lookingstatementsforanyreason,exceptasrequiredbylaw.
PARTIItem1.BusinessCompanyBackground
AppleInc.anditswholly-ownedsubsidiaries(collectively?Apple?orthe?Company?)design,manufacture,andmarketpersonalcomputers, portabledigitalmusicplayers,andmobilecommunicationdevicesandsellavarietyofrelatedsoftware,services,peripherals,andnetworkingsolutions.TheCompanysellsitsproductsworldwidethroughitsonlinestores,itsretailstores,itsdirectsalesforce,andthird-partywholesalers,resellers,andvalue-addedresellers.Inaddition,theCompanysellsavarietyofthird-partyMacintosh®(?Mac?),iPod®andiPhone?compatibleproducts,includingapplicationsoftware,printers,storagedevices,speakers,headphones,andvariousotheraccessoriesandperipheralsthroughitsonlineandretailstores,anddigitalcontentthroughtheiTunesStore®.TheCompanysellstoconsumer,smallandmid-sizedbusiness(?SMB?),education,enterprise,government,andcreativecustomers.TheCompany?sfiscalyearisthe52or53-week  periodthatendsonthelastSaturdayofSeptember.Unlessotherwisestated,allinformationpresentedinthisForm10-KisbasedontheCompany?sfiscalcalendar.
BusinessStrategy
TheCompanyiscommittedtobringingthebestpersonalcomputing,portabledigitalmusicandmobilecommunicationexperiencetoconsumers,students,educators,businesses,andgovernmentagenciesthroughitsinnovativehardware,software,peripherals,services,andInternetofferings.TheCompany?sbusinessstrategyleveragesitsuniqueabilitytodesignanddevelopitsownoperatingsystem,hardware,applicationsoftware,andservicestoprovideitscustomersnewproductsandsolutionswithsuperiorease-of-use,seamlessintegration,andinnovativeindustrialdesign.TheCompanybelievescontinualinvestmentinresearchanddevelopmentiscriticaltothedevelopmentandenhancementofinnovativeproductsandtechnologies.Inadditiontoevolvingitspersonalcomputersandrelatedsolutions,theCompanycontinuestocapitalizeontheconvergenceofthepersonalcomputer,digitalconsumerelectronicsandmobilecommunicationsbycreatingandrefininginnovations,suchastheiPod,iPhone,iTunesStore,andAppleTV®.TheCompanydesirestosupportacommunityforthedevelopmentofthird-partyproductsthatcomplementtheCompany?sofferingsthroughitsdeveloperprograms.TheCompanyoffersvariousthird-partysoftwareapplicationsandhardwareaccessoriesforMac®computers,iPodsandiPhonesthroughitsretailandonlinestores,aswellassoftwareapplicationsfortheiPhoneplatformthroughitsiTunes®AppStore.TheCompany?sstrategyalsoincludesexpandingitsdistributionnetworktoeffectivelyreachmoreofitstargetedcustomersandprovidethemwithahigh-qualitysalesandpost-salessupportexperience.
ConsumerandSmallandMid-SizedBusiness
TheCompanybelievesahigh-qualitybuyingexperiencewithknowledgeablesalespersonswhocanconveythevalueoftheCompany?s productsandservicesgreatlyenhancesitsabilitytoattractandretaincustomers.TheCompanysellsmanyofitsproductsandresellscertainthird-partyproductsinmostofitsmajormarketsdirectlytoconsumersandbusinessesthroughitsretailandonlinestores.TheCompanyhasalsoinvestedinprogramsto
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TableofContents
enhanceresellersales,includingtheAppleSalesConsultantProgram,whichplacesAppleemployeesandcontractorsatselectedthird-partyresellerlocations.TheCompanybelievesprovidingdirectcontactwithitstargetedcustomersisanefficientwaytodemonstratetheadvantagesofitsMaccomputersandotherproductsoverthoseofitscompetitors.Attheendoffiscal2008,theCompanyhadopenedatotalof247retailstores,including205storesintheU.S.andatotalof42storesinternationally.TheCompanyhastypicallylocateditsstoresathigh-trafficlocationsinqualityshoppingmallsandurbanshoppingdistricts.AgoaloftheCompany?sretailbusinessistoexpanditsinstalledbasethroughsalestocustomerswhocurrentlydonotalreadyowntheCompany?sproducts.Byoperatingitsownstoresandlocatingthemindesirablehigh-trafficlocations,theCompanyisbetterpositionedtocontrolthecustomerbuyingexperienceandattractnewcustomers.ThestoresaredesignedtosimplifyandenhancethepresentationandmarketingoftheCompany?sproductsandrelatedsolutions.Tothatend,retailstoreconfigurationshaveevolvedintovarioussizesinordertoaccommodatemarket-specificdemands.Thestoresemployexperiencedandknowledgeablepersonnelwhoprovideproductadvice,service,andtraining.Thestoresofferawideselectionofthird-partyhardware,software,andvariousotheraccessoryproductsandperipheralsselectedtocomplementtheCompany?sownproducts.
 Education
Throughoutitshistory,theCompanyhasfocusedontheuseoftechnologyineducationandhasbeencommittedtodeliveringtoolstohelpeducatorsteachandstudentslearn.TheCompanybelieveseffectiveintegrationoftechnologyintoclassroominstructioncanresultinhigher levelsofstudentachievement,especiallywhenusedtosupportcollaboration,informationaccess,andtheexpressionandrepresentationof studentthoughtsandideas.TheCompanyhasdesignedarangeofproductsandservicestoaddresstheneedsofeducationcustomers.TheseproductsandservicesincludetheCompany?sMaccomputers,iPods,andiTunes,inadditiontovarioussolutionsforvideocreationandediting,wirelessnetworking,professionaldevelopment,andone-to-one(?1:1?)learning.A1:1learningsolutiontypicallyconsistsofa portablecomputerforeverystudentandteacheralongwiththeinstallationofawirelessnetwork.
 Enterprise,GovernmentandCreative
TheCompanyalsosellsitshardwareandsoftwareproductstoenterprise,government,andcreativecustomersineachofitsgeographicsegments.Thesemarketsarealsoimportanttomanythird-partydeveloperswhoprovideMac-compatiblehardwareandsoftwaresolutions.ThesecustomersutilizetheCompany?sproductsfortheirhigh-poweredcomputingperformanceandexpansioncapabilities,networkingfunctionality,andseamlessintegrationwithcomplementaryproducts.TheCompanydesignsitshigh-endhardwaresolutions,includingdesktopssuchasMacPro,portableMacsystemssuchasMacBook®ProandMacBookAir?,andserverstoincorporatethepower,expandability,andotherfeaturesdesiredbytheseprofessionals.TheCompany?soperatingsystem,MacOS®X,incorporatespowerfulgraphicsandaudiotechnologiesandfeaturesdevelopertoolstooptimizesystemandapplicationperformance.
Other 
Inadditiontoconsumer,SMB,education,enterprise,governmentandcreativemarkets,theCompanyprovideshardwareandsoftware productsandsolutionsforcustomersintheinformationtechnologyandscientificmarkets.
BusinessOrganization
TheCompanymanagesitsbusinessprimarilyonageographicbasis.TheCompany?sreportableoperatingsegmentsconsistoftheAmericas,Europe,Japan,andRetail.TheAmericas,Europe,andJapanreportablesegmentsdonotincludeactivitiesrelatedtotheRetailsegment.TheAmericassegmentincludesbothNorthandSouthAmerica.TheEuropesegmentincludesEuropeancountriesaswellastheMiddleEastandAfrica.TheRetailsegmentoperatesApple-ownedretailstoresintheU.S.andininternationalmarkets.EachreportablegeographicoperatingsegmentandtheRetailoperatingsegmentprovidesimilarhardwareandsoftwareproductsandsimilarservices.FurtherinformationregardingtheCompany?soperatingsegmentsmaybefoundinPartII,
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