8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

October 22, 2007

Date of Report (date of earliest event reported)

APPLE INC.

(Exact name of Registrant as specified in its charter)

California
(State or other jurisdiction
of incorporation) 000-10030
(Commission File Number) 94-2404110
(I.R.S. Employer
Identification Number)

1 Infinite Loop, Cupertino, CA 95014
(Address of principal executive offices)

(408) 996-1010

(Registrant’s telephone number, including area code)

(Former name or former address, if changed

since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On October 22, 2007, Apple Inc. (“Apple”) issued a press release regarding Apple’s financial results for its fourth fiscal quarter ended September 29, 2007 and a related data sheet. A copy of Apple’s press release is attached hereto as Exhibit 99.1 and a copy of the related data sheet is attached hereto as Exhibit 99.2.

The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished herewith:

Exhibit Number	Description
99.1	Text of press release issued by Apple Inc. dated October 22, 2007.
99.2	Data sheet issued by Apple Inc. dated October 22, 2007.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	APPLE INC.
Date: October 22, 2007
	By:	/s/ Peter Oppenheimer
		Peter Oppenheimer Senior Vice President and Chief Financial Officer

3

EXHIBIT INDEX

Exhibit Number	Description
99.1	Text of press release issued by Apple Inc. dated October 22, 2007.
99.2	Data sheet issued by Apple Inc. dated October 22, 2007.

4

EX-99.1

Exhibit 99.1

Apple Reports Fourth Quarter Results

Quarterly Mac Sales Set New Record

Quarterly iPhone Sales Exceed One Million

CUPERTINO, California—October 22, 2007—Apple® today announced financial results for its fiscal 2007 fourth quarter ended September 29, 2007. The Company posted revenue of $6.22 billion and net quarterly profit of $904 million, or $1.01 per diluted share. These results compare to revenue of $4.84 billion and net quarterly profit of $542 million, or $.62 per diluted share, in the year-ago quarter. Gross margin was 33.6 percent, up from 29.2 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter’s revenue.

Apple shipped 2,164,000 Macintosh® computers, representing 34 percent growth over the year-ago quarter and exceeding the previous quarterly record for Mac® shipments by 400,000. The Company sold 10,200,000 iPods during the quarter, representing 17 percent growth over the year-ago quarter. Quarterly iPhone™ sales were 1,119,000, bringing cumulative fiscal 2007 sales to 1,389,000.

“We are very pleased to have generated over $24 billion in revenue and $3.5 billion in net income in fiscal 2007,” said Steve Jobs, Apple’s CEO. “We’re looking forward to a strong December quarter as we enter the holiday season with Apple’s best products ever.”

“Apple ended the fiscal year with $15.4 billion in cash and no debt,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first quarter of fiscal 2008, we expect revenue of about $9.2 billion and earnings per diluted share of about $1.42.”

Apple will provide live streaming of its Q4 2007 financial results conference call utilizing QuickTime®, Apple’s standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Monday, October 22, 2007 at www.apple.com/quicktime/qtv/earningsq407/ and will also be available for replay.

This press release contains forward-looking statements about the Company’s estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include potential litigation and government enforcement actions that may result from the matters investigated by the special committee of the board of directors and the restatement of the Company’s consolidated financial statements; unfavorable results of legal proceedings; the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; war, terrorism, public health issues, and other circumstances that could disrupt supply, delivery, or demand of products; continued competitive pressures in the marketplace; the Company’s reliance on sole service providers for iPhone in the U.S., U.K., Germany and France; the continued availability on acceptable terms of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the effect that product quality problems could have on the Company’s sales and operating profits; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the Company’s dependency on the performance of distributors and other resellers of the Company’s products; the Company’s reliance on the availability of third-party digital content; and the potential impact of a finding that the Company has infringed on the intellectual property rights of others. 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-K for the fiscal year ended September 30, 2006, its Forms 10-Q for the quarters ended December 30, 2006, March 31, 2007, and June 30, 2007, and its Form 10-K for the year ended September 29, 2007 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.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

Press Contact:

Steve Dowling

(408) 974-1896

dowling@apple.com

Investor Relations Contacts:

Nancy Paxton

(408) 974-5420

paxton1@apple.com

Joan Hoover

(408) 974-4570

hoover1@apple.com

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr/), or call Apple’s Media Helpline at (408) 974-2042.

© 2007 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh, iPhone and QuickTime are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share amounts)

	September 29,  2007		September 30,  2006
ASSETS:
Current assets:
Cash and cash equivalents	$	9,352	$	6,392
Short-term investments	6,034		3,718
Accounts receivable, less allowances of $47 and $52, respectively	1,637		1,252
Inventories	346		270
Deferred tax assets	782		607
Other current assets	3,805		2,270
Total current assets	21,956		14,509
Property, plant and equipment, net	1,832		1,281
Goodwill	38		38
Acquired intangible assets, net	299		139
Other assets	1,222		1,238
Total assets	$	25,347	$	17,205
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	4,970	$	3,390
Accrued expenses	4,329		3,053
Total current liabilities	9,299		6,443
Non-current liabilities	1,516		778
Total liabilities	10,815		7,221
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value; 1,800,000,000 shares authorized; 872,328,972 and 855,262,568 shares issued and outstanding, respectively	5,368		4,355
Retained earnings	9,101		5,607
Accumulated other comprehensive income	63		22
Total shareholders’ equity	14,532		9,984
Total liabilities and shareholders’ equity	$	25,347	$	17,205

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share amounts)

	Three Months Ended				Twelve Months Ended
	September 29, 2007		September 30, 2006		September 29, 2007		September 30, 2006
Net sales	$	6,217	$	4,837	$	24,006	$	19,315
Cost of sales (1)	4,127		3,425		15,852		13,717
Gross margin	2,090		1,412		8,154		5,598
Operating expenses:
Research and development (1)	207		179		782		712
Selling, general, and administrative (1)	823		625		2,963		2,433
Total operating expenses	1,030		804		3,745		3,145
Operating income	1,060		608		4,409		2,453
Other income and expense	170		113		599		365
Income before provision for income taxes	1,230		721		5,008		2,818
Provision for income taxes	326		179		1,512		829
Net income	$	904	$	542	$	3,496	$	1,989
Earnings per common share:
Basic	$	1.04	$	0.63	$	4.04	$	2.36
Diluted	$	1.01	$	0.62	$	3.93	$	2.27
Shares used in computing earnings per share (in thousands):
Basic	870,881		854,187		864,595		844,058
Diluted	895,666		878,757		889,292		877,526

(1) Stock-based compensation expense was allocated as follows:

Cost of sales	$	10	$	5	$	35	$	21
Research and development	$	21	$	13	$	77	$	53
Selling, general, and administrative	$	37	$	22	$	130	$	89

UNAUDITED CONSOLIDATED SCHEDULE OF DEFERRED REVENUE

(in millions)

	September 29, 2007		June 30, 2007		March 31, 2007		September 30, 2006
Deferred revenue-current:
iPhone and Apple TV	$	346	$	92	$	10	$	—
AppleCare	430		399		373		333
Other	634		572		520		385
Total deferred revenue-current	1,410		1,063		903		718
Deferred revenue-non-current:
iPhone and Apple TV	290		88		10		—
AppleCare	495		435		392		355
Other	45		38		31		28
Total deferred revenue-non-current	830		561		433		383
Total deferred revenue	$	2,240	$	1,624	$	1,336	$	1,101

EX-99.2

Exhibit 99.2

Apple Inc.

Q4 2007 Unaudited Summary Data

	Q3 2007			Q4 2006			Q4 2007			Sequential Change				Year/Year Change
	CPU			CPU			CPU			CPU				CPU
Operating Segments	Units K	Rev $ M		Units K	Rev $ M		Units K	Rev $ M		Units		Revenue		Units		Revenue
Americas	824	$	2,680	781	$	2,348	965	$	2,928	17	%	9	%	24	%	25	%
Europe	393	1,160		342	988		499	1,339		27	%	15	%	46	%	36	%
Japan	81	258		62	286		72	255		- 11	%	- 1	%	16	%	- 11	%
Retail	330	915		323	884		473	1,251		43	%	37	%	46	%	42	%
Other Segments (1)	136	397		102	331		155	444		14	%	12	%	52	%	34	%
Total Operating Segments	1,764	$	5,410	1,610	$	4,837	2,164	$	6,217	23	%	15	%	34	%	29	%

										Sequential Change				Year/Year Change
	Units K	Rev $ M		Units K	Rev $ M		Units K	Rev $ M		Units		Revenue		Units		Revenue
Product Summary
Desktops (2)	634	$	956	624	$	869	817	$	1,195	29	%	25	%	31	%	38	%
Portables (3)	1,130	1,577		986	1,344		1,347	1,908		19	%	21	%	37	%	42	%
Subtotal CPUs	1,764	2,533		1,610	2,213		2,164	3,103		23	%	23	%	34	%	40	%
iPod	9,815	1,570		8,729	1,559		10,200	1,619		4	%	3	%	17	%	4	%
Other Music Related Products and Services (4)		608			452			601				- 1	%			33	%
iPhone and Related Products & Services (5)	270	5		—	—		1,119	118		NM		NM		NM		NM
Peripherals and Other Hardware		308			297			346				12	%			16	%
Software, Service and Other Sales		386			316			430				11	%			36	%
Total Apple		$	5,410		$	4,837		$	6,217			15	%			29	%

(1)   Other Segments include Asia Pacific and FileMaker.

(2)   Includes iMac, eMac, Mac mini, Mac Pro, PowerMac and Xserve product lines.

(3)   Includes MacBook, iBook, MacBook Pro and PowerBook product lines.

(4)   Consists of iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessories.

(5)   Units consist of iPhone handset sales; revenue is derived from handset sales, carrier agreements, and Apple-branded and third-party iPhone accessories.

NM:  Not Meaningful