Apple Inc's Comment on Sales, Marketing and Customers
The Company’s customers are primarily in the consumer, SMB, education,
enterprise and government markets. The Company sells its products and resells
third-party products in most of its major markets directly to consumers and
SMBs through its retail and online stores and its direct sales force. The Company
also employs a variety of indirect distribution channels, such as third-party
cellular network carriers, wholesalers, retailers, and value-added resellers.
The Company’s net sales through its direct and indirect distribution channels
accounted for 30% and 70%, respectively, of total net sales.
The Company believes that sales of its innovative and differentiated products
are enhanced by knowledgeable salespersons who can convey the value of the hardware
and software integration, and demonstrate the unique solutions that are available
on its products. The Company further believes providing direct contact with
its targeted customers is an effective way to demonstrate the advantages of
its products over those of its competitors and providing a high-quality sales
and after-sales support experience is critical to attracting new and retaining
To ensure a high-quality buying experience for its products in which service
and education are emphasized, the Company continues to expand and improve its
distribution capabilities by expanding the number of its own retail stores worldwide.
The Company’s retail stores are typically located at high-traffic locations
in quality shopping malls and urban shopping districts. By operating its own
stores and locating them in desirable high-traffic locations the Company is
better positioned to ensure a high quality customer buying experience and attract
new customers. The stores are designed to simplify and enhance the presentation
and marketing of the Company’s products and related solutions. The retail
stores employ experienced and knowledgeable personnel who provide product advice,
service and training and offer a wide selection of third-party hardware, software,
and other accessories and peripherals that complement the Company’s products.
The Company has also invested in programs to enhance reseller sales by placing
high quality Apple fixtures, merchandising materials and other resources within
selected third-party reseller locations. Through the Apple Premium Reseller
Program, certain third-party resellers focus on the Apple platform by providing
a high level of product expertise, integration and support services.
The Company is committed to delivering solutions to help educators teach and
students learn. The Company believes effective integration of technology into
classroom instruction can result in higher levels of student achievement and
has designed a range of products, services and programs to address the needs
of education customers. The Company also supports mobile learning and real-time
distribution of, and access to, education related materials through iTunes U®,
a platform that allows students and teachers to share and distribute educational
media online. The Company sells its products to the education market through
its direct sales force, select third-party resellers and its online and retail
The Company also sells its hardware and software products to enterprise and
government customers in each of its geographic segments. The Company’s
products are deployed in these markets because of their performance, productivity,
ease of use and seamless integration into information technology environments.
The Company’s products are compatible with thousands of third-party business
applications and services, and its tools enable the development and secure deployment
of custom applications as well as remote device administration.