What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2021-10-29 compared with 2020-10-30 · 49 added, 25 removed, 70 unchanged (51% of the section changed)

2 unchanged sentences

The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September.

The Company is a California corporation established in 1977.

iPhone ® is the Company’s line of smartphones based on its iOS operating system.

During 2020, the Company released a new iPhone SE.

In October 2020, the Company announced four new iPhone models with 5G technology:

iPhone 12 and iPhone 12 Pro were available starting in October 2020, and iPhone 12 Pro Max and iPhone 12 mini are both expected to be available in November 2020.

In October and November 2020, the Company released iPhone 12, iPhone 12 mini, iPhone 12 Pro and iPhone 12 Pro Max, all with 5G technology.

In September 2021, the Company released iPhone 13, iPhone 13 mini, iPhone 13 Pro and iPhone 13 Pro Max.

Mac ® is the Company’s line of personal computers based on its macOS ® operating system.

During 2020, the Company released a new 16-inch MacBook Pro ® , a fully redesigned Mac Pro ® , and updated versions of its MacBook Air ® , 13-inch MacBook Pro and 27-inch iMac ® .

iPad ® is the Company’s line of multi-purpose tablets based on its iPadOS ® operating system.

During 2020, the Company released an updated iPad Pro ® .

In September 2020, the Company released an eighth-generation iPad and introduced an all-new iPad Air ® , which was available starting in October 2020.

In November 2020, the Company released new versions of MacBook Air ® , 13-inch MacBook Pro ® and Mac mini ® , and in May 2021, the Company released a redesigned iMac ® , all powered by the Apple M1 chip.

In October 2021, the Company released a redesigned MacBook Pro, available in 14- and 16-inch models and powered by the Apple M1 Pro or M1 Max chip.

iPad ® is the Company’s line of multipurpose tablets based on its iPadOS ® operating system.

In October 2020, the Company released a new iPad Air ® , and in April 2021, the Company released a new iPad Pro ® powered by the Apple M1 chip.

In September 2021, the Company released an updated iPad and a new iPad mini ® .

Wearables, Home and Accessories

Wearables, Home and Accessories includes AirPods ® , Apple TV ® , Apple Watch ® , Beats ® products, HomePod ® , iPod touch ® and other Apple-branded and third-party accessories.

Wearables, Home and Accessories includes AirPods ® , Apple TV ® , Apple Watch ® , Beats ® products, HomePod ® , iPod touch ® and accessories.

AirPods are the Company’s wireless headphones that interact with Siri ® .

During 2020, the Company released AirPods Pro ® .

In December 2020, the Company released AirPods Max™, new over-ear wireless headphones, and in October 2021, the Company released the third generation of AirPods.

Apple Watch is the Company’s line of smart watches based on its watchOS ® operating system.

In September 2020, the Company released Apple Watch Series 6 and a new Apple Watch SE.

In October 2020, the Company announced HomePod mini™, which is expected to be available in November 2020.

The Company’s advertising services include various third-party licensing arrangements and the Company’s own advertising platforms.

In September 2021, the Company announced Apple Watch Series 7, which was available starting in October 2021.

| 2021 Form 10-K | 1

The Company’s advertising services include various third-party licensing arrangements and the Company’s own advertising platforms.

The Company offers a portfolio of fee-based service and support products under the AppleCare ® brand.

4 unchanged sentences

The Company operates various platforms, including the App Store ® , that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts.

The Company also offers digital content through subscription-based services, including Apple Arcade SM , a game subscription service;

The Company also offers digital content through subscription-based services, including Apple Arcade ® , a game subscription service;

Apple Music ® , which offers users a curated listening experience with on-demand radio stations;

Apple News+ SM , a subscription news and magazine service;

Apple News+ ® , a subscription news and magazine service;

and Apple TV+ SM , which offers exclusive original content.

In September 2020, the Company announced Apple Fitness+ SM , a personalized fitness service built for Apple Watch, which is expected to be available before the end of calendar 2020.

During 2021, the Company released Apple Fitness+ SM , a personalized fitness service.

Payment Services

5 unchanged sentences

During 2021, the Company’s net sales through its direct and indirect distribution channels accounted for 36% and 64%, respectively, of total net sales.

No single customer accounted for more than 10% of net sales in 2020, 2019 and 2018.

The markets for the Company’s products and services are highly competitive, and are characterized by aggressive price competition and resulting downward pressure on gross margins, frequent introduction of new products and services, short product life cycles, evolving industry standards, continual improvement in product price and performance characteristics, rapid adoption of technological advancements by competitors, and price sensitivity on the part of consumers and businesses.

Many of the Company’s competitors seek to compete primarily through aggressive pricing and very low cost structures, and by emulating the Company’s products and infringing on its intellectual property.

Many of the Company’s competitors seek to compete primarily through aggressive pricing and very low cost structures, and by imitating the Company’s products and infringing on its intellectual property.

The Company’s ability to compete successfully depends heavily on ensuring the continuing and timely introduction of innovative new products, services and technologies to the marketplace.

The Company believes it is unique in that it designs and develops nearly the entire solution for its products, including the hardware, operating system, numerous software applications and related services.

The Company designs and develops nearly the entire solution for its products, including the hardware, operating system, numerous software applications and related services.

Principal competitive factors important to the Company include price, product and service features (including security features), relative price and performance, product and service quality and reliability, design innovation, a strong third-party software and accessories ecosystem, marketing and distribution capability, service and support, and corporate reputation.

| 2021 Form 10-K | 2

The Company is focused on expanding its market opportunities related to smartphones, personal computers, tablets and other electronic devices and services.

The Company is focused on expanding its market opportunities related to smartphones, personal computers, tablets, wearables and accessories, and services.

The Company faces substantial competition in these markets from companies that have significant technical, marketing, distribution and other resources, as well as established hardware, software, and service offerings with large customer bases.

1 unchanged sentence

Competition has been particularly intense as competitors have aggressively cut prices and lowered product margins.

Certain competitors may have the resources, experience or cost structures to provide products at little or no profit or even at a loss.

Certain competitors have the resources, experience or cost structures to provide products at little or no profit or even at a loss.

The Company’s services compete with business models that provide content to users for free and use illegitimate means to obtain third-party digital content and applications.

The Company expects competition in these markets to intensify significantly as competitors imitate the Company’s product features and applications within their products, or collaborate to offer integrated solutions that are more competitive than those they currently offer.

The Company faces significant competition as competitors imitate the Company’s product features and applications within their products, or collaborate to offer integrated solutions that are more competitive than those they currently offer.

Supply of Components

Although most components essential to the Company’s business are generally available from multiple sources, certain components are currently obtained from single or limited sources.

The Company also competes for various components with other participants in the markets for smartphones, personal computers, tablets and other electronic devices.

The Company also competes for various components with other participants in the markets for smartphones, personal computers, tablets, wearables and accessories.

Therefore, many components used by the Company, including those that are available from multiple sources, are at times subject to industry-wide shortage and significant commodity pricing fluctuations.

27 unchanged sentences

Net sales can also be affected when consumers and distributors anticipate a product introduction.

Human Capital

The Company believes it has a talented, motivated, and dedicated team, and is committed to supporting the development of all of its team members and to continuously building on its strong culture.

As of September 25, 2021, the Company had approximately 154,000 full-time equivalent employees.

Workplace Practices and Policies

The Company is committed to providing a workplace free of harassment or discrimination based on race, color, religion, sex, sexual orientation, gender identity, national origin, disability, veteran status, caste or other legally protected characteristic.

The Company is an equal opportunity employer committed to inclusion and diversity.

Compensation and Benefits

The Company believes that compensation should not only be competitive;

it should be equitable and should enable employees to share in the Company’s success as shareholders of the Company.

The Company recognizes its people are most likely to thrive when they have the resources to meet their needs and the time and support to succeed in their professional and personal lives.

In support of this, the Company offers a wide variety of benefits to employees around the world.

Growth and Development

The Company invests in tools and resources that support employees’ individual growth and development.

The Company also provides classes and seminars to foster understanding and critical thinking about the Company’s culture, organization and values.

Inclusion and Diversity

The Company is committed to hiring inclusively, providing training and development opportunities, fostering an inclusive culture, and ensuring equitable pay for employees, and is continuing to focus on increasing diverse representation at every level of the Company.

The Company has initiatives in place to implement its commitment to increase diverse representation, including creating diverse interview panels and candidate slates, focusing on robust diversity recruiting efforts, and expanding diversity outreach efforts through organizations that serve and engage talent from underrepresented communities.

The Company also offers team members access to ongoing inclusion and diversity education, and support throughout their career journey and helps them find community and connection through employee groups that create spaces for belonging, learning, and growing inclusivity, diversity and equity efforts.

The Company believes that open and honest communication among team members, managers and leadership fosters an open, collaborative work environment where everyone can participate, develop and thrive.

Team members are encouraged to come to their managers with questions, feedback or concerns, and the Company regularly conducts surveys that gauge employee sentiment in areas like career development, manager performance and inclusivity.

Health and Safety

The Company is committed to protecting its employees everywhere it operates.

The Company identifies potential risks associated with workplace activities in order to develop measures to mitigate possible hazards.

The Company supports employees with general safety training and puts specific programs in place for those working in potentially high-hazard environments, including chemical management, laser safety, equipment and machinery safety, hazardous materials management and electrical safety.

The Company has taken additional measures during the COVID-19 pandemic, including providing information resources, testing, face masks and personal protective equipment, and case support.

The Company also offers special sick leave for employees with possible COVID-19 symptoms, as well as comprehensive health coverage.

| 2021 Form 10-K | 4

Available Information

The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are filed with the Securities and Exchange Commission (the “SEC”).

Securities and Exchange Commission (the “SEC”).

Such reports and other information filed by the Company with the SEC are available free of charge at investor.apple.com/investor-relations/sec-filings/default.aspx when such reports are available on the SEC’s website.

The Company periodically provides other information for investors on its corporate website, www.apple.com, and its investor relations website, investor.apple.com.

This includes press releases and other information about financial performance, information on corporate governance and details related to the Company’s annual meeting of shareholders.

This includes press releases and other information about financial performance, information on environmental, social and corporate governance and details related to the Company’s annual meeting of shareholders.

The information contained on the websites referenced in this Form 10-K is not incorporated by reference into this filing.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business