Ratings on Cupertino, Calif.-based Apple Computer Inc. reflect a conservative financial profile and significant financial flexibility, offset by extremely competitive personal computer (PC) industry conditions and limited global market share. While Apple's strategic and business risk profile has benefited from a stable and experienced management team, the company is still dependent upon a relatively limited product base. Apple's fiscal 2000 revenue and unit sales growth were well above global PC market growth. However, the company expects revenues and profitability for the fiscal year ending Sept. 30, 2001, to be significantly lower than results the previous year. Standard&Poor's current ratings incorporate the assumption that Apple regains sustainable profitability in the March 31, 2001, quarter. Apple is expected to maintain
