The ratings on Apple Computer Corp. reflect extremely competitive personal computer (PC) industry conditions and limited global market share, offset by a conservative financial profile and significant liquidity. With fiscal 2003 revenues of $6.2 billion, Cupertino, Cal.-based Apple holds about a 3.5% global PC market share. Despite a relatively limited global market share, Apple's retail channel initiatives have improved the company's U.S. market position. Apple's share of the U.S. home market has materially strengthened over the past two years, and the company has successfully expanded its product line to include digital music player and wireless networking products. However, Apple is still dependent on a relatively limited product base for the majority of its earnings. Constrained technology spending levels and highly
