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APPLE INC.

         POLITICAL CONTRIBUTIONS AND EXPENDITURES POLICY

The success of Apple Inc. (the “Corporation”) depends on sound and consistent public
policies that encourage a healthy business environment. The Corporation is subject to
legislation and regulation that significantly affects how the Corporation conducts its
business affairs and creates value for its shareholders. The legal and regulatory landscape
includes without limitation laws relating to intellectual property, trade, corporate taxation
and the environment. Participating in the political process is part of the Corporation's
strategy to protect and enhance the Corporation’s interests.

The Corporation's strategy is to engage in the political process with a view to the long-
term interests of Apple and its shareholders. It is the role of the senior management team
not simply to respond to the political process, but also actively to promote the
Corporation's interests and forecast policy trends that can affect Apple in the future. The
Corporation makes all of its political contributions and expenditures in accordance with
this policy. The Corporation’s Government Affairs group, with the approval of the Vice
President, Government Affairs, makes all political contributions and expenditures on
behalf of the Corporation, and management reports these political contributions and
expenditures to the Board on an annual basis.

The Corporation makes political contributions to candidates who, first and foremost,
demonstrate integrity and character. Other factors that influence which candidates merit
the Corporation's financial support include:

       The geographical scope of the candidate's representation
   •
       The candidate's voting record on key issues affecting the Corporation
   •
       The candidate's leadership position in the legislature or political party
   •


The Corporation complies with all applicable laws and regulations governing political
contributions and expenditures and discloses all political contributions and expenditures
as required by law. Under federal law, corporations cannot support candidates for federal
office. Under some state laws, corporations also cannot make campaign contributions.
Apple does not have a political action committee. State and local political candidates and
committees that receive contributions are required to report the contributions they
receive. Most states in which the Corporation operates also require public reporting of
political contributions and expenditures made in those states.

In addition to supporting political candidates, Apple engages with government officials at
all levels on issues that impact the Corporation and its operations. The Corporation also
belongs to various trade organizations that focus on matters concerning the Corporation’s
interests. These organizations, which operate on a multi-national, national and/or state
and local level principally comprise technology companies and/or geographically linked
companies. Some of the major trade associations that Apple currently belongs to include
the American Electronics Association (AeA), Business Software Alliance (BSA), the
Consumer Electronics Association (CEA), and Information Technology Industry Council
(ITI). The purpose of these associations is to advance the common goals and interests of
the member companies and their customers, including addressing such issues as
combating piracy, opening access to foreign markets, ensuring consistent product
standards, and promoting strong intellectual property protection. These organizations
also engage in advocacy activities on behalf of their members, and Apple publicly
discloses the portion of membership dues or payments that are used for political
expenditures. Management reports the Corporation’s membership and participation in
these organizations to the Board annually when it reports on its other political activities.

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apple Political Contributions & Expenditure Policy

  • 1. APPLE INC. POLITICAL CONTRIBUTIONS AND EXPENDITURES POLICY The success of Apple Inc. (the “Corporation”) depends on sound and consistent public policies that encourage a healthy business environment. The Corporation is subject to legislation and regulation that significantly affects how the Corporation conducts its business affairs and creates value for its shareholders. The legal and regulatory landscape includes without limitation laws relating to intellectual property, trade, corporate taxation and the environment. Participating in the political process is part of the Corporation's strategy to protect and enhance the Corporation’s interests. The Corporation's strategy is to engage in the political process with a view to the long- term interests of Apple and its shareholders. It is the role of the senior management team not simply to respond to the political process, but also actively to promote the Corporation's interests and forecast policy trends that can affect Apple in the future. The Corporation makes all of its political contributions and expenditures in accordance with this policy. The Corporation’s Government Affairs group, with the approval of the Vice President, Government Affairs, makes all political contributions and expenditures on behalf of the Corporation, and management reports these political contributions and expenditures to the Board on an annual basis. The Corporation makes political contributions to candidates who, first and foremost, demonstrate integrity and character. Other factors that influence which candidates merit the Corporation's financial support include: The geographical scope of the candidate's representation • The candidate's voting record on key issues affecting the Corporation • The candidate's leadership position in the legislature or political party • The Corporation complies with all applicable laws and regulations governing political contributions and expenditures and discloses all political contributions and expenditures as required by law. Under federal law, corporations cannot support candidates for federal office. Under some state laws, corporations also cannot make campaign contributions. Apple does not have a political action committee. State and local political candidates and committees that receive contributions are required to report the contributions they receive. Most states in which the Corporation operates also require public reporting of political contributions and expenditures made in those states. In addition to supporting political candidates, Apple engages with government officials at all levels on issues that impact the Corporation and its operations. The Corporation also belongs to various trade organizations that focus on matters concerning the Corporation’s interests. These organizations, which operate on a multi-national, national and/or state and local level principally comprise technology companies and/or geographically linked companies. Some of the major trade associations that Apple currently belongs to include the American Electronics Association (AeA), Business Software Alliance (BSA), the
  • 2. Consumer Electronics Association (CEA), and Information Technology Industry Council (ITI). The purpose of these associations is to advance the common goals and interests of the member companies and their customers, including addressing such issues as combating piracy, opening access to foreign markets, ensuring consistent product standards, and promoting strong intellectual property protection. These organizations also engage in advocacy activities on behalf of their members, and Apple publicly discloses the portion of membership dues or payments that are used for political expenditures. Management reports the Corporation’s membership and participation in these organizations to the Board annually when it reports on its other political activities.