Apple Computer, Inc
Industry: Computer Hardware

Apple Computer, Inc. designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer and business customers. Substantially all of the Company's net sales over the last five years have been derived from the sale of its Apple Macintosh line of personal computers and related software and peripherals. The Company offers a range of personal computing products including desktop and notebook personal computers, related devices and peripherals, networking and connectivity products, and various third-party hardware products. All of the Company's Macintosh products utilize PowerPC RISC-based microprocessors.

Business Summary
Apple Computer, Inc. designs, manufactures and markets personal computers (PCs) and related software, peripherals and personal computing and communicating 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 and audio books. The Company's products and services include the Macintosh line of desktop and notebook computers, the iPod digital music player, the Xserve server and Xserve RAID storage products, a portfolio of consumer 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 of other service and support offerings.

Financial Summary
For the fiscal year ended 24 September 2005, Apple Computer, Inc.'s revenues rose 68% to $13.9B. Net income totaled $1.34B, up from $276M. Revenues reflect increased sales of iPods and higher sales of Macintosh products. Net income also benefited from an increase in gross margins, improved operating margins, the absence of restructuring costs, and benefits from several tax items related to net deferred tax assets and tax reserves.