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0000320193
20021219
10-K
121
The Company was honored in 2002 by the National Academy of Recording Arts and Sciences with a Technical GRAMMY Award for its outstanding technical contributions to the music industry and recording field.
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This was the first Technical GRAMMY ever awarded to a personal computer company.
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20021219
10-K
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From the original Macintosh, the first personal computer to include built-in audio capabilities, Apple has helped change the way music is written, recorded, mixed and enjoyed.
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20021219
10-K
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The Company acquired Emagic, a leading provider of professional software and hardware solutions for computer based music production, during the fourth quarter of 2002.
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20021219
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Emagic's most popular product, Logic®, is actively used by musicians around the world and by professionals in music production, film scoring, and post production facilities.
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20021219
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At the time of the acquisition, Macintosh-based products accounted for over 65% of Emagic's revenues.
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20021219
10-K
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Emagic's Windows-based product offerings were discontinued by the Company during its first fiscal quarter of 2003.
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20021219
10-K
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Consumer, Education and Business Oriented Application Software iMovie™ 2, the Company's easy-to-use consumer digital video editing software for creation of home and classroom movies, features an enhanced user interface, improved audio editing capabilities, enhanced controls for titling and transitions, and added specia...
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20021219
10-K
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iMovie 2 is currently preinstalled on all of the Company's Macintosh systems.
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20021219
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iDVD™ 2 is consumer oriented software that makes it easy to turn iMovie files, QuickTime files and digital pictures into DVDs that can be played on most consumer DVD players.
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20021219
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iDVD 2 simplifies DVD authoring by including professionally designed themes and drag-and-drop simplicity.
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20021219
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iDVD 2 is currently preinstalled on all Macintosh systems equipped with a SuperDrive.
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20021219
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The Company introduced iPhoto™ in January 2002.
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20021219
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Designed exclusively for Mac OS X, iPhoto makes it easy to import, edit, save, share, and print digital photos, as well as organize and manage an entire digital photo collection containing thousands of photos.
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20021219
10-K
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Users are able to view their photos in full-screen; using the slide show feature accompanied by their favorite music; automatically create custom web pages of their photos; email photos to friends and family; order professionally-processed prints and enlargements online; or easily design and order custom-printed, linen...
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20021219
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Prints, enlargements, and hard bound book production is currently only available to U.S. customers.
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20021219
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iPhoto is currently preinstalled on all of the Company's Macintosh systems.
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20021219
10-K
138
iTunes® is a digital music application for the Macintosh that lets users create and manage their own digital music library.
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20021219
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iTunes organizes music using searching, browsing and playlist features.
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20021219
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It supports both audio and MP3 CD burning, features a graphic equalizer and cross fading between songs, and supports automatic synchronization with the music stored on an iPod, Apple's portable digital music player.
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20021219
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iTunes is currently preinstalled on all Macintosh systems.
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20021219
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In July 2002, the Company introduced iTunes 3, featuring Smart Playlists, which automatically and dynamically updates playlists based on simple rules set by the user, and Sound Check for consistent volume playback.
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20021219
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During the fourth quarter of 2002, the Company released two new applications, iCal and iSync Public Beta.
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20021219
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iCal is a new calendar program that allows users to manage multiple calendars and share them over the Internet.
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20021219
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iCal makes it easy for consumers, students, educators and small business users to create and manage individual or group activities on single or multiple calendars; publish these calendars on the web for viewing by colleagues, friends and family members; subscribe to automatically updated calendars via the Internet to k...
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20021219
10-K
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iSync Public Beta is a preview version of Apple's new software application that automatically synchronizes address books and calendars between Macintosh systems and the new generation of Bluetooth-enabled GPRS mobile phones, Apple's iPod and Palm OS-compatible handheld organizers.
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In addition, users with a .Mac™ account can use iSync to seamlessly synchronize their calendars and address books across multiple Macintosh systems connected to the Internet.
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20021219
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AppleWorks® 6.2 is an integrated productivity application that incorporates word processing, page layout, image manipulation, spreadsheets, databases and presentations in a single application.
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20021219
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Intended to be an easy-to-use product for the Company's consumer and education customers, AppleWorks makes it simple to create professional-looking documents in the classroom and at home.
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20021219
10-K
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FileMaker Corporation, a wholly owned subsidiary of the Company, develops, publishes, and distributes desktop-based database management application software for Mac OS and Windows-based systems.
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20021219
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FileMaker's FileMaker® Pro database software and related products offer strong relational databases and advanced desktop-to-web publishing capabilities.
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20021219
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Internet Software, Integration, and Services Apple's Internet strategy is focused on delivering seamless integration with and access to the Internet throughout the Company's product lines.
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20021219
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The Company's Internet products and technologies adhere to many industry standards in order to provide an optimized user experience through interoperability.
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20021219
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An easy Internet Setup Assistant is included with the Mac OS.
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20021219
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QuickTime®, the Company's multimedia software for Macintosh and Windows platforms, features streaming of live and stored video and audio over the Internet and playback of high-quality audio and video on computers.
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QuickTime Player is an easy-to-use application for playing, interacting with or viewing video, audio, QuickTime VR 3D images, or graphics files.
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20021219
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More than 125 million copies of QuickTime Player were downloaded via the Internet during the last year.
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20021219
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Tens of thousands of software applications and content CDs feature QuickTime, and more than 150 models of digital cameras from most major brands use QuickTime to capture and display their images.
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20021219
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The current version of QuickTime, QuickTime 6, was released in July of 2002 and features support for the open-standard MPEG 4 format.
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20021219
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QuickTime 6 includes the new Instant-On Streaming feature that eliminates buffer delays and provides users with the ability to quickly and easily scrub through streaming media content to locate and instantly view specific sections.
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In addition, QuickTime 6 running on Mac OS X now supports JPEG 2000, the next generation JPEG standard that allows users to capture still images in a higher quality and smaller file size than ever before.
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20021219
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QuickTime 6 also includes Advanced Audio Coding (AAC), the standard MPEG-4 audio format.
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20021219
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AAC is the next generation professional-quality audio format that delivers superior sound quality with reduced file sizes.
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20021219
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QuickTime Pro is a suite of software that allows creation and editing of Internet-ready audio and video files and allows a user to add special effects and other features to QuickTime movies.
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20021219
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QuickTime Streaming Server software is the underlying server technology that powers QuickTime's ability to stream live and stored video and audio over the Internet.
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QuickTime Streaming Server is based on an open sourced, standards-based Real-Time Transport Protocol/Real-Time Streaming Protocol (RTP/RTSP) engine.
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20021219
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The current version, QuickTime Streaming Server 4, extends support for standards by adding support for both MPEG 4 and MP3.
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20021219
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While QuickTime Streaming Server is designed for Mac OS X Server, it is also available as an open source server.
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20021219
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Because QuickTime Streaming Server is an open source technology it can be ported to other platforms, and versions are available for Linux, Solaris and Windows NT/2000.
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20021219
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QuickTime Broadcaster is the Company's live encoding software that allows users to quickly and easily produce professional-quality live events for online delivery.
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20021219
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The combination of QuickTime Broadcaster, QuickTime Streaming Server 4 and QuickTime 6 provides the industry's first end-to-end MPEG-4-based Internet broadcasting system, which allows users to reach not only the large and growing base of installed QuickTime Players, but also any ISO-compliant MPEG-4 player.
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20021219
10-K
172
WebObjects®, the Company's Java-based application server for web publishing and enterprise application development, offers a complete solution for rapid development and deployment of web applications.
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20021219
10-K
173
WebObjects features sophisticated graphical development tools, comprehensive prebuilt and reusable components, integration with numerous data sources, and robust deployment tools.
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20021219
10-K
174
Introduced with Mac OS X Jaguar, Sherlock® 3 is the Company's advanced Internet search engine.
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20021219
10-K
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Sherlock 3 functions for users as an Internet service tool that retrieves and displays a personalized view of some of the most practical and useful information available on the Internet, such as stock news, general headlines, movie previews, locations and show times, yellow pages listings, eBay auction activity and mor...
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Sherlock displays each of these 'channels' in its own arrangement of columns and panes.
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When used for Internet searches, Sherlock utilizes multiple search engines to provide search results ranked by relevance, name, or web site.
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20021219
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In July 2002, the Company launched .Mac™, a new suite of Internet services that for an annual fee provides Macintosh users with powerful Internet tools.
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20021219
10-K
179
.Mac features email service with IMAP, POP or web-based access, 100MB of Internet storage, and hosting for personalized homepages and shared digital photo albums.
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Also included with .Mac is McAfee's Virex anti-virus software and Backup, a personal back-up solution that allows users to archive data to their Internet storage, CD, or DVD.
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20021219
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Wireless Connectivity and Networking AirPort® is the Company's wireless networking technology that allows users to create a computer network and connect to the Internet without cables, additional phone lines, or complicated networking hardware.
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20021219
10-K
182
Based on the IEEE 802.11b wireless standard and Wi-Fi certified, AirPort allows high-speed wireless communications within a radius of approximately 150 feet from an AirPort base station.
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20021219
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AirPort includes security features like firewall protection and 128-bit encryption to protect user data.
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20021219
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With the addition of an AirPort networking card, all of the Company's desktop and portable Macintosh systems have built-in support for AirPort wireless networking, including built-in antennas and an AirPort card slot.
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20021219
10-K
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During 2002, the Company released its Bluetooth technology for Mac OS X. Bluetooth is an emerging industry standard for wirelessly connecting computers and peripherals that supports transmission of data at up to 1 Mbps within a range of approximately 30 feet.
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20021219
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The Company's Bluetooth technology for Mac OS X lets customers wirelessly share files between Macintosh systems, synchronize and share contact information with Palm-OS based PDAs, and access the Internet through Bluetooth-enabled cell phones.
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20021219
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A Bluetooth USB adaptor can Bluetooth-enable any USB-based Macintosh computer running in Mac OS X version 10.1.4 or higher.
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20021219
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Bluetooth software is built into Max OS X Jaguar.
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20021219
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Introduced in the fourth quarter of 2002, the Company's new Rendezvous™ networking technology is based on open Internet Engineering Task Force (IETF) Standard Protocols such as IP, ARP and DNS.
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Rendezvous uses industry standard networking protocols and zero configuration technology to automatically discover and connect devices over any IP network, including Ethernet or 802.11-based wireless networks like the Company's AirPort product.
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Major developers such as Canon, Epson, Hewlett-Packard, Lexmark, Philips, Sybase, World Book and Xerox have announced support for Rendezvous in a broad range of products including network printers, consumer electronics, enterprise database management and educational applications.
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20021219
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In September 2002, the Company announced that it was "open sourcing" the code for Rendezvous.
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20021219
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By making the source code freely available, the Company allows developers to use Rendezvous technology in their network-enabled devices or software applications.
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20021219
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The Rendezvous source code includes software to support UNIX, Linux, and Windows- based systems and devices.
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Rendezvous support is built into Mac OS X Jaguar.
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20021219
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Apple Remote Desktop™ for Mac OS X software enables users, teachers and administrators to remotely manage other Macintosh systems anywhere on a local network, AirPort wireless network or across the Internet.
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With Apple Remote Desktop, teachers can view students' computer screens, perform group demonstrations and help individuals with real-time screen-sharing, text chat and the "request attention" command.
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System administrators can provide remote assistance, get comprehensive system profiles, reconfigure system settings and quickly and easily distribute software applications across hundreds of computers-all from one central location over both Ethernet and AirPort wireless networks.
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Apple Remote Desktop supports multiple levels of administrator access, each with its own password, providing a secure way for teachers or department-level administrators to assist users while restricting privileges for deleting items or changing system settings.
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The Company invented FireWire® technology, also referred to as IEEE 1394, which is a high-speed serial input/output technology for connecting digital devices such as digital camcorders and cameras to desktop and portable computers.
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20021219
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With its high data-transfer speed and "hot plug-and-play" capability, FireWire has become an established cross-platform industry standard for both consumers and professionals and is the data interface of choice for today's digital video and audio devices, as well as external hard drives and other high-speed peripherals...
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Industry data indicates that FireWire will be included on more than 64 million personal computers and nearly 100 million digital devices by the end of calendar 2002.
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The Company received a 2001 Primetime Emmy Engineering Award for FireWire's impact on the television industry.
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20021219
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FireWire is currently included on all Macintosh systems and is the data transfer technology utilized by iPod.
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Third-Party Software Products Thousands of third-party software titles and solutions are available for the Macintosh platform.
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The Company sells a variety of these third-party software products directly to end users through both its retail and online stores.
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Additional information regarding the Company's relationship with and dependence upon third-party software developers, including Microsoft Corporation, may be found in Part II, Item 7 of this Form 10-K under the heading "Factors That May Affect Future Results and Financial Condition."
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Product Support and Services AppleCare® offers a range of support options for Apple customers.
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These options include assistance that is built into software products, printed and electronic product manuals, online support including comprehensive product information as well as technical assistance, and the AppleCare Protection Plan.
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The AppleCare Protection Plan is a fee-based service that typically includes three years of phone support and hardware repairs, dedicated web-based support resources, and user diagnostic tools.
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Apple Training offers comprehensive system administration and development training on Apple technologies, together with certification programs that test customers' skills and verify their technical proficiency.
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Apple Professional Services offers a range of custom, personalized technical services, including Internet consulting and setup, installation and integration services.
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The Company also offers specialized loan programs including loans for consumers, students, and educators.
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Apple also provides leasing solutions for its education institution customers and its business and professional customers.
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The Company uses several third-party lenders to originate and carry these loans and leases.
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Specialized Education Products and Services The Company offers a variety of unique services and products to its education customers, including a separate online store for education customers offering special education price lists and promotions; special financing programs for K-12 and higher education students, faculty...
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Additionally, Apple Professional Services offers a range of technical services to education customers.
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In 2001, Apple acquired PowerSchool Inc., a privately held provider of web-based student information systems for K-12 schools and school districts.
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PowerSchool® software products give school administrators and teachers the ability to easily and cost-effectively manage student records and give parents real-time access to track their children's performance via the Internet.
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PowerSchool offers the option of remote hosting with an application service provider model.
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