Apple's Strategy for Long-Term Growth
Apple’s Strategy for Long-Term Growth Fred Anderson CFO Forward-Looking Information Please note that some of the information you will hear during today’s presentation may consist of forward-looking statements and that actual results could differ materially from these statements. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the SEC, including the Company’s Form 10-Q for the quarter ended June 28th, 2003 and the Company’s Form 10-K for the 2003 fiscal year to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Agenda Investing for Long-Term Growth: 2001-2003 Market Update -Consumer -Education -Creative -Small Business -Enterprise/Government Investing for Long-Term Growth Cash Cash balances were up $229 million in FY03 ($=Mil) $5,000 $4,566 $4,336 $4,337 $4,000 $4,027 $3,226 $3,000 $2,300 $2,000 $1,745 $1,459 $1,000 $952 $0 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 Investing Through the Downturn FY2001 to FY2003 FY01 FY02 FY03 Revenue $5,363 $5,742 $6,207 (millions) Gross Margin 23.0% 27.9% 27.5% Operating Expense $1,579 $1,586 $1,709 (millions) Net Income (Loss) $(25) $65 $69 (millions) Apple’s R&D Investment R&D investment is up 50% from FY99 R&D headcount is close to 2,500 ($=Mil) $500 $471 $446 $430 $400 $380 $314 $300 $200 $100 $0 FY99 FY00 FY01 FY02 FY03 Apple’s R&D Investment FY03 R&D expense breakdown Applications
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