Summary
This 8-K filing from Apple Computer, Inc. (now Apple Inc.) on August 26, 2005, announces a significant supply agreement with Freescale Semiconductor, Inc. The core of the agreement, effective August 22, 2005, establishes Freescale as a supplier of microprocessors for Apple's orders through December 31, 2008. This secures a critical component supply chain for Apple for a defined period, which is crucial for product planning and manufacturing continuity. While the agreement obligates Freescale to supply, Apple's commitment is limited to existing work-in-progress at the time of the agreement, offering flexibility. Investors should view this as a step towards managing supply chain risks for key internal components, contributing to the stability and predictability of Apple's operations during the specified timeframe. The filing also highlights the role of CFO Peter Oppenheimer in authorizing this disclosure.
Key Highlights
- 1Apple entered into a Purchase Agreement with Freescale Semiconductor, Inc. on August 22, 2005.
- 2The agreement designates Freescale as a supplier of microprocessors for Apple's orders.
- 3The supply arrangement is set to continue through December 31, 2008.
- 4Apple has no obligation to purchase Freescale microprocessors beyond existing work-in-progress at the agreement's execution date.
- 5This agreement is designed to ensure a stable supply of a key component for Apple's products.
- 6The filing was made to disclose this material definitive agreement, as required by SEC regulations.
- 7Peter Oppenheimer, Apple's CFO, signed the report, indicating senior management oversight.