Apple Computer, Inc. designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer and business customers. Substantially all of the Company's net sales over the last five years have been derived from the sale of its Apple Macintosh line of personal computers and related software and peripherals

Apple shipped 2,289,000 Macintosh® computers during the quarter, representing 51 percent unit growth and 54 percent revenue growth over the year-ago quarter. The Company sold 10,644,000 iPods during the quarter, representing one percent unit growth and eight percent revenue growth over the year-ago quarter. Quarterly iPhone™ sales were 1,703,000. 

“We’re delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO. “With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters.” 

“We’re thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third quarter of fiscal 2008, we expect revenue of about $7.2 billion and earnings per diluted share of about $1.00.” 

Final Cut Server Now Shipping
CUPERTINO, California—April 8, 2008—Apple® today announced that Final Cut® Server, a powerful software solution for media asset management and workflow automation, is now shipping. A scaleable server application, Final Cut Server automatically catalogs large collections of assets, allows searching across multiple disks and SAN volumes and enables viewing, annotation and approval of content from anywhere using a PC or Mac®. 
“Whether producing a 30-second spot, the nightly news or a major motion picture, Final Cut Studio is the choice of editors around the world,” said Rob Schoeben, Apple’s vice president of Applications Product Marketing. “With the introduction of Final Cut Server, collaboration just got a whole lot easier for millions of editors, producers and clients who work with Final Cut Studio.” 
“For the past few months we’ve been using a beta of Final Cut Server to manage our entire workflow pipeline, 24/7, and it held up beautifully,” said Evan Schechtman, CTO of Radical Media. “Best of all, Final Cut Server integrates seamlessly with our home-grown solutions so it’s actually adding new value to systems we’ve relied on for years.” 
Final Cut Server automatically catalogs media and generates thumbnails, poster frames and low-resolution clip proxies for quick browsing in user specified formats. A cross-platform client enables a PC or Mac to use Final Cut Server’s broad search capabilities, which extend from simple keywords to complex combinations of IPTC, XMP and XML metadata. Final Cut Server also configures a range of highly specific access controls that define user permissions on an asset or project basis. 
Final Cut Server scales to support workgroups of different sizes, ranging from a two-person post house to a multi-national news organization and can automate as much, or as little, of the production pipeline as needed. A configurable event-based response model tracks job status, monitors media changes, and automates review and approval notifications and complex sequences of tasks—all through a series of simple menu selections. 
Tightly integrated with Final Cut Studio® for a seamless extension of the workflow, Final Cut Server includes Compressor 3, Apple’s industrial strength digital encoding and compression tool, which delivers pristine format conversions for publishing to DVD, broadcast television, the Internet, Apple TV®, iPod®, iPhone™ and other mobile phones. 

iTunes Store Top Music Retailer in the US
CUPERTINO, California—April 3, 2008—Apple® today announced that the iTunes® Store (www.itunes.com) surpassed Wal-Mart to become the number one music retailer in the US, based on the latest data from the NPD Group*. With over 50 million customers, iTunes has sold over four billion songs and features the world’s largest music catalog of over six million songs. 

“We launched iTunes less than five years ago, and it has now become the number one music retailer in the world,” said Eddy Cue, Apple’s vice president of iTunes. “We are thrilled, and would like to thank all of our customers for helping us reach this incredible milestone.” 

*Based on data from market research firm the NPD Group’s MusicWatch survey that captures consumer reported past week unit purchases and counts one CD representing 12 tracks, excluding wireless transactions. The iTunes Store became the largest music retailer in the US based on the amount of music sold during January and February 2008.