Apple (AAPL)

Macintosh® Computers

In June 2005, the Company announced its plan to begin using Intel microprocessors in its computers. During 2006, the Company introduced new Intel-based models of the MacBook™ Pro, MacBook, Mac® Pro, iMac®, and Mac mini computers. All Intel-based Macintosh systems feature a fully native version of Mac OS X Version 10.4 Tiger, including the Rosetta™ translation technology, which allows most PowerPC-based Macintosh applications to run on Intel-based Macintosh computers. The Company’s transition to Intel microprocessors for Macintosh systems was completed in August 2006, and its transition for Xserve® was completed in November 2006. There are potential risks and uncertainties associated with the transition to Intel microprocessors, which are further discussed in Item 1A of this 10-K under the heading “Risk Factors.”

Macintosh®
Computers

In June 2005, the
Company announced its plan to begin using Intel microprocessors in its
computers. During 2006, the Company introduced new Intel-based models of the
MacBook™ Pro, MacBook, Mac® Pro, iMac®, and Mac mini computers. All Intel-based
Macintosh systems feature a fully native version of Mac OS X Version 10.4
Tiger, including the Rosetta™ translation technology, which allows most
PowerPC-based Macintosh applications to run on Intel-based Macintosh computers.
The Company’s transition to Intel microprocessors for Macintosh systems was
completed in August 2006, and its transition for Xserve® was completed in November 2006.
There are potential risks and uncertainties associated with the transition to
Intel microprocessors, which are further discussed in Item 1A of this 10-K
under the heading “Risk Factors.”

Macintosh® Computers

In June 2005, the Company announced its plan to begin using Intel microprocessors in its Macintosh computers. The Company plans to begin shipping certain models with Intel microprocessors by June 2006

3

and to complete the transition of all of its Macintosh computers to Intel microprocessors by the end of calendar year 2007. The Company also announced its new translation technology, Rosetta™, which will allow most PowerPC-based Macintosh applications to run on new Intel-based Macintosh computers.  There are potential risks and uncertainties associated with this transition, which are further discussed in Part II, Item 7 of this 10-K under the heading “Factors That May Affect Future Results and Financial Condition.”

Macintosh®
Computers

In June 2005, the
Company announced its plan to begin using Intel microprocessors in its
Macintosh computers. The Company plans to begin shipping certain models with
Intel microprocessors by June 2006

3

and to complete the
transition of all of its Macintosh computers to Intel microprocessors by the
end of calendar year 2007. The Company also announced its new translation
technology, Rosetta™, which will allow most PowerPC-based Macintosh
applications to run on new Intel-based Macintosh computers.  There are potential risks and uncertainties
associated with this transition, which are further discussed in Part II,
Item 7 of this 10-K under the heading “Factors That May Affect Future
Results and Financial Condition.”

Macintosh Computers

In June 2005, the Company announced its plan to begin using Intel microprocessors in its Macintosh computers. The Company plans to begin shipping certain models with Intel microprocessors by June 2006 and to complete this transition of all of its Macintosh computers to Intel microprocessors by the end of calendar year 2007.  The Company also announced its new translation technology, “Rosetta,” which will allow most PowerPC-based Macintosh applications to run on new Intel-based Macintosh computers.