Question

Many companies make annual reports available on their corporate web page, often under an Investors tab. Annual reports also can be accessed through the SEC’s EDGAR system at www.sec.gov (under Filings, click Company Filings Search, type in Company Name, and under Filing Type, search for 10-K). Access the most recent annual report for a company with which you are familiar to complete the following requirements. Required Prepare a one-page report describing your findings for the following: 1. The company’s reported operating segments and whether they are based on product lines, geographic areas, or some other basis. 2. The importance of each operating segment for the company as a whole in terms of revenues, income, and assets. 3. Whether the company provides any enterprisewide disclosures in addition to disclosures related to its operating segments. 4. Whether the company provides disclosures about major customers.

Answer 1

Operating segments

Apple Inc. designs, manufactures and markets mobile communication and media devices and personal computers, and sells a variety of related software, services, accessories, networking solutions and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iOS, macOS, watchOS and tvOS operating systems, iCloud, Apple Pay and a variety of accessory, service and support offerings. The Company sells and delivers digital content and applications through collectively “Digital Content and Services”.

The Company sells its products worldwide through its retail stores, online stores and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers and value-added resellers. The Company’s reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region.

In addition, the Company sells a variety of third-party Apple-compatible products, including application software and various accessories through its retail and online stores. The Company sells to consumers, small and mid-sized businesses and education, enterprise and government customers.

The following table shows net sales by operating segment and net sales and unit sales by product for 2017 , 2016 and 2015 (dollars in millions and units in thousands):

2017 iphone accounts for 62% of the  total sales worldwide declining from 66% of2015.