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Apple Computer, Inc. (, ) is an American computer technology corporation with worldwide annual sales in its fiscal year 2005 (ending 24 September 2005) of US$ 13.9 billion.Yahoo Finance The company has 14,800 employees in several countries. Headquartered in Cupertino, California, Apple develops, sells, and supports a series of personal computers, portable media players, computer software, and computer hardware accessories. The company's best-known products include the Macintosh line of personal computers, the Mac OS X operating system, the iPod portable music player, and the iTunes Store. Apple operates retail stores in the United States, Canada, Japan, and the United Kingdom. The stores carry most of Apple's products as well as many third-party products and offer on-site support and repair for Apple hardware and software. For a variety of reasons, ranging from its philosophy of comprehensive aesthetic design to its countercultural, even indie roots as a company that differentiates itself from the rest of the industry by “thinking different,” Apple has cultivated a customer base, referred to as the Cult of Mac, that is unusually devoted to the company and its brand.
History Apple has been a major player in the evolution of personal computing since its founding in 1976. The Apple II microcomputer, introduced in 1977, was a hit with home users. In 1983, Apple introduced the Lisa, the first commercial personal computer to employ a graphical user interface (GUI), which was influenced in part by the Xerox Alto. In 1984, the Macintosh was introduced, furthering the concept of a user-friendly graphical user interface, and also introducing the mouse for the first time to a personal computer. Apple's success with the Macintosh became a major influence in the development of graphical interfaces elsewhere, with major computer operating systems such as Microsoft Windows, Commodore Amiga, and Atari ST, all appearing on the market within two years of the introduction of the Macintosh. In 1991, Apple introduced the PowerBook line of portable computers, establishing the modern ergonomic form and design that has since become ubiquitous in the portable market. The 1990s also saw Apple's market share fall as competition from Microsoft Windows and the comparatively inexpensive IBM PC compatible computers that would eventually dominate the market. In the 2000s, Apple expanded their focus on software to include professional and prosumer video, music, and photo production solutions, with a view to promoting their computers as a "digital hub". It also introduced the iPod, the most popular digital music player in the world as of August 2006. 1975 to 1980: The early years Apple was founded on April 1, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne (and later incorporated January 3, 1977 without Wayne, who sold his share of the company back to Jobs and Wozniak) to sell the Apple I personal computer kit at US$666.66. They were hand-built in the garage of Jobs' parents, and the Apple I was first shown to the public at the Homebrew Computer Club. Eventually 200 computers were built. The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips) - not what is today considered a complete personal computer.. The user was required to provide two different AC input voltages (the manual recommended specific transformers), wire an ASCII keyboard (not provided with the computer) to a DIP connector (providing logic inverter and alpha lock chips in some cases), and to wire the video output pins to a monitor or to an RF modulator if a TV set was used. Jobs approached a local computer store, The Byte Shop, which ordered fifty units and paid $500 for each unit after much persuasion from Jobs. Jobs then ordered components from Cramer Electronics, a national electronic parts distributor. Using a variety of methods, including borrowing space from friends and family and selling various items including a Volkswagen Type 2 bus, Jobs managed to secure the parts needed while Wozniak and Ronald Wayne assembled the Apple I. The Apple II was introduced on April 16, 1977 at the first West Coast Computer Faire. Despite a price higher than competitors, it quickly pulled away from its two main rivals, the TRS-80 and Commodore PET, to become the market leader (and the symbol of the personal computing phenomenon) in the late 70s due to its color graphics, high build quality, and open architecture. While early models used ordinary cassette tapes as storage devices, this was quickly superseded by the introduction of a 5 1/4 inch floppy disk drive and interface, the Disk II. Another key to success for Apple was software. The Apple II was chosen by programmers Dan Bricklin and Bob Frankston to be the desktop platform for the first "killer app" of the business world—the VisiCalc spreadsheet program. VisiCalc created a business market for the Apple II, and the corporate market attracted many more software and hardware developers to the machine, as well as giving home users an additional reason to buy one—compatibility with the office. (See the timeline for dates of Apple II family model releases—the 1977 Apple II and its younger siblings the II+, IIe, IIc, and IIGS.) By the end of the 1970s, Jobs and his partners had a staff of computer designers and a production line. The Apple II was succeeded by the Apple III in May 1980 as the company struggled to compete against IBM and Microsoft in the lucrative business and corporate computing market. The designers of the Apple III were forced to comply with Jobs' request to omit the cooling fan, and this ultimately resulted in thousands of recalled units due to overheating. An updated version was introduced in 1983, but it was also a failure due to bad press and wary buyers. Nevertheless, the principals of the company persevered with further innovations and marketing. In the early 1980s, IBM and Microsoft continued to gain market share at Apple's expense in the personal computer industry. Using a fundamentally different business model, IBM marketed an open hardware standard created with the IBM PC, which was bundled with Microsoft's MS-DOS (MicroSoft-Disk Operating System). Based on the marketing and technical savvy of Steve Jobs and Steve Wozniak, and the business expertise of Mike Markkula, Apple dominated the personal computer industry from 1977 to 1983. 1981 to 1989: Lisa and Macintosh Jobs and several other Apple employees including Jef Raskin visited Xerox PARC in December 1979 to see the Alto computer. Xerox granted Apple engineers three days of access to the PARC facilities in return for selling them US$1 million in pre-IPO Apple stock (approximately US$18 million net). Jobs was immediately convinced that all future computers would use a GUI, and decided to take over design of Apple's first project, the Apple Lisa, to produce such a machine. The Lisa was named after Jobs' daughter. He was eventually pushed from the group due to infighting, and instead took over Jef Raskin's low-cost computer project. Branding the new effort as the product that would "save Apple", an intense turf war broke out between the Lisa's "corporate shirts" and Jobs's Macintosh "pirates", both teams claiming they would ship first and be more successful. In 1983 the Lisa team won the race, and Apple introduced the first personal computer to be sold to the public with a GUI. However, the Lisa was a commercial failure as a result of its high price tag (9,995 USD) and limited software titles. In 1984, drawing upon its experience with the Lisa, Apple next launched the Macintosh. Its debut was announced by a single national broadcast of the now famous US$1.5 million television commercial, "1984", based on George Orwell's novel Nineteen Eighty-Four. The commercial was directed by Ridley Scott and aired during Super Bowl XVIII on January 22, 1984. Jobs' intention with the ad was to equate Big Brother with the IBM PC, and a nameless female action hero portrayed by Anya Major with the Macintosh. While it initially sold well, follow-up sales were not particularly strong. The machine's fortunes changed with the introduction of the LaserWriter, the first laser printer to be offered at a reasonable price point, and PageMaker, an early desktop publishing (DTP) package. The Mac was particularly powerful in this market due to its advanced graphics capabilities, a side-effect of the GUI, and it can be said that the combination of these three products are responsible for the creation of the DTP market. As DTP became widespread, Apple's sales reached a series of new highs. In anticipation of the Macintosh launch, Bill Gates, co-founder and chairman of Microsoft, was given several Macintosh prototypes in 1983 to develop software. While the company was indeed ready with its BASIC and the MultiPlan spreadsheet at the Macintosh's launch, in 1985 Microsoft launched Windows, its own GUI for IBM PCs using many of the elements of the Macintosh OS. By 1990, Windows 3.1 was a usable alternative to the Macintosh. An internal power struggle developed between Jobs and new CEO John Sculley in 1985. Apple's board of directors sided with Sculley, and Jobs was removed from his managerial duties. Jobs later resigned from Apple and founded NeXT Inc., a computer company that built machines with futuristic designs and ran the UNIX-derived NeXTStep operating system. Although powerful, NeXT computers never caught on with buyers, due in part to their high purchase price. 1989 to 1991: The Golden Age Having learned several painful lessons after introducing the bulky Macintosh Portable in 1989, Apple turned to industrial designers and adopted a product strategy based in three portable devices. One portable was built by Sony, which had a strong reputation for designing small, durable and functional electronics devices. Sony took the specs of the Mac Portable, put in a smaller two-hour battery, a much smaller (physically) twenty megabyte hard drive and a smaller nine-inch passive matrix screen. Called the PowerBook 100, this landmark product was introduced in 1991 and established the modern form and ergonomic layout of the laptop computer. This solidified Apple's reputation as a quality manufacturer, both of desktop and now portable machines. The same year, Apple introduced a massive upgrade to the Mac OS, in the form of System 7. Although resource-hungry (for the era), System 7 dramatically improved the Macintosh experience, adding color to the interface, simplifying common operations, and introducing a number of powerful new networking capabilities. System 7 would be the basis for the Mac OS until 2001. The success of the PowerBook and several other Apple products during this period led to increasing revenue. The computer press listened to Apple press releases with rapt attention, and speculation was rife about what projects from Apple's famed Advanced Technology Group would next come to market. Apple merely had to mention a technology, Taligent for instance, for people to christen it the "new standard". For some time, it appeared that Apple could do no wrong, introducing new products that were the best on the market, and generating increasing profits in the process. The magazine MacAddict named the period between 1989 to 1991 the "first golden age" of the Macintosh. The continuing development of Microsoft Windows eventually resulted in an interface that many people thought was close enough or even superior to the Macintosh in terms of ease of use and overall look and feel. Combined with a huge base of low-cost computers and peripherals and an improving software suite, an increasing number of potential customers turned to the "Wintel" standard instead. Apple, relying on high profit margins to maintain their massive R&D budget, never developed a clear response. Instead they sued Microsoft for theft of intellectual property. The lawsuit dragged on for years before finally being thrown out of court. Worse, the lawsuit distracted management while a deep rot developed within the engineering ranks, which became increasingly unmanageable. At first there was little outward sign of the problem, but a series of major product flops and missed deadlines destroyed Apple's reputation of invincibility. At about the same time, Apple branched out into consumer electronics. One example of this product diversification was the Apple QuickTake digital camera, one of the first digital cameras ever brought to the consumer market. A more famous example was the Newton, coined a PDA by Sculley, that was introduced in 1993. Though it failed commercially, it defined and launched the new category of computing and was a forerunner and inspiration of devices such as Palm Pilot and PocketPC. During the 1990s, Apple greatly expanded its computer lineup. It offered a multitude of models ("Quadra 840av", "Performa 6116"), but many felt Apple failed to adequately differentiate one model from another and the cost of supporting so many products adversely affected profitability. Apple lost market share to Microsoft Windows, particularly Windows 95 - a major turning point in the history of the rival Windows operating system. 1994 to 1997: Attempts at reinvention
1998 to 2005: New beginnings
2005 to present: The Intel partnership In a keynote address on June 6, 2005, Steve Jobs officially announced that Apple would begin producing Intel-based Macintosh computers beginning in 2006. Jobs confirmed rumors that the company had secretly been producing versions of its current operating system Mac OS X for both PowerPC and Intel processors for the previous five years, and that the transition to Intel processor systems would last until the end of 2007. On January 10, 2006, Apple released its first Intel chip computers, a new notebook computer known as the MacBook Pro (a 15.4 inch laptop which is purportedly up to 4 times faster than the PowerBook models it replaced) and a new (though cosmetically identical) iMac with again purportedly two to three times faster performance. Both used Intel's Core Duo chip technology. Later in February, Apple introduced the new Intel-based Mac mini, running up to four times faster and also featuring Front Row, available with a Core Duo or Core Solo (single core) processor. The Apple online store sold out of 17 inch iMac G5 computers in February 2006, Apple ended the life of its 15 inch PowerBook G4 on February 22 2006, and the G4 Mac mini was removed from the Apple online store on February 28, 2006 and replaced with the Intel Core Mac mini. On March 10, 2006 Apple retired the iMac G5 and in late May, replaced the iBook G4 with the MacBook. On August 7 2006, the PowerMac was replaced with the Mac Pro, completing the transition of all Macintosh products, well in advance of their original prediction. On September 6, 2006, Apple updated its iMac line to include new Intel Core 2 Duo processors, and adding a model with a 24" screen to the line-up, as well as quietly bumping the speeds of their Mac mini. The XServe will also be transitioned by mid-November. On October 24, the MacBook Pro's were fitted with Intel Core 2 Duo processors as well, running up to 39% faster than the original Intel Core Duo MacBook Pro's Apple's current operating system, Mac OS X 10.4 "Tiger", runs natively on the new Intel machines, as do the Darwin open source underpinnings. Many applications, such as iLife '06, also run natively on Intel chips. Other applications, such as Microsoft Office and Adobe Photoshop, which have not been updated to run on the Intel architecture, run in emulation mode, using a technology known as Rosetta. Because Rosetta is a translation software that allows PowerPC programs to run on Intel processors, these PowerPC programs run slower than native applications. Programs compiled only for the PowerPC must be recompiled to run at full speed on the new Intel machines. Programs that have been designed to run on both PowerPC and Intel chips can be certified by Apple as 'Universal'•. The Intel-based machines also do not support Classic, which allows Mac OS X to run applications written for OS 9 and earlier, so applications that require this environment will not run on these machines. Apple currently has no plans to bring Classic support to the Intel platform. The Intel chip also allows the new machines to run the Windows operating system. On March 16, 2006 a bootloader CD image and a how-to for getting XP on your MacBook Pro, iMac, or mini was released to the Internet as an entry into a US$13,000 contest. Many hackers attempted over three months to win the prize by becoming the first to run Windows natively on a new Intel Mac. The Intel-based Macintoshes are now the only computers officially capable of running both Mac OS and Windows (and Linux) without emulation (a pre-release version of Mac OS X for Intel was patched to run on non-Apple PCs through the OSx86 community, however such procedure is illegal by the Apple EULA). Further, on 5 April 2006, Apple announced a new piece of software called Boot Camp that helps users install Windows XP on their Intel Mac alongside Mac OS X. Boot Camp (name not finalized) will also be included, as standard, in Apple's next OS release (10.5, “Leopard”). The Apple/Intel partnership coined several catch phrases among Apple fanatics and parts of media. Some of the most widespread ones include "Mactel" and "Macintel", a response to the phrase "Wintel,” which is an informal moniker that describes all Intel-powered systems running the Microsoft Windows operating system. However, Apple itself has not publicly used these monikers. In a broader view, Apple’s announcement that it would partner with longtime rival Intel was a reaffirmation of the company’s unique aesthetic philosophy in relation to the end-user experience. “The soul of a Mac is its operating system,” as Jobs proclaimed during the keynote, and indeed the Intel switch demonstrated how little it matters what brand of chip lies beneath the polish. Apple’s gradual discovery of itself as a platform, experience-centric company was complete. Apple's success during this period, beginning in 1998, but accelerating between 2003 to 2005, was evident in its skyrocketing stock. Between early 2003 and January 2006, the price of a share of Apple's stock increased more than ten-fold, from a little more than $6 per share to more than $80 per share. After peaking at $86 per share in January 2006, the stock declined to trade briefly as low as $50 per share before recovering to a range of approximately $75-$80 per share by October 2006. On January 13, 2006, Apple's market cap surpassed that of Dell, whose CEO, Michael Dell, had said, "I'd shut it down and give the money back to the shareholders," when asked on October 6, 1997, what he would do if he owned Apple. Current products Hardware Apple introduced the Macintosh family in 1984 and today makes consumer, professional, and educational computers. The Mac mini is the company's consumer sub-desktop computer, introduced in January 2005 and designed to motivate Windows users to switch to the Macintosh platform. The iMac is a consumer desktop computer that was first introduced by Apple in 1998, and its popularity helped save the company. Now in its third design iteration, the iMac is similar in concept to the original Macintosh in that the monitor and computer are housed in a single unit. The Power Mac G5, Apple's desktop computer for the professional and creative market, is a member of the Power Macintosh series first introduced in 1994. Apple's server range includes the Xserve, a single-processor, dual-processor, and cluster-node server range, and the Xserve RAID for server storage options. The Power Mac brand was replaced in 2006 with the Mac Pro, featuring two 64-bit dual-core Xeon "Woodcrest" processors, available in speeds of 2, 2.66 and 3 Ghz. The Mac Pro is capable of supporting up to 2 terabytes of internal hard disk space (3 terabytes using 750 GB hard drives available from third parties) and has 8 DIMM slots for up to 16GB of RAM. On its promotional website, Apple says that the "Mac Pro not only completes the Mac transition to Intel processors but delivers advanced performance, workstation graphics, and up to 4.9 million possible configurations." Apple introduced the iBook consumer portable computer as a companion to the iMac; it is Apple's lowest-cost portable computer. The iBook brand was replaced on May 16, 2006 with the MacBook featuring the Intel Core Duo processor, 13 inch widescreen, and available black color on the high-end model. The MacBook Pro is the professional portable computer alternative to the MacBook. The MacBook Pro is intended for the professional and creative market and replaced the PowerBook range. The PowerBook range was first introduced in 1991 and helped Apple grow during the 1990s. In 2001, Apple introduced the iPod digital music player and currently sells the iPod (with video), available in 30 and 80 GB models; the iPod nano, available in 2 GB, 4 GB, and 8 GB models; and the iPod shuffle, available in a 1 GB model. Apple also re-released the U2 Special Edition iPod in a 30 GB capacity on June 6, 2006 with a distinctive all black enclosure, a red clickwheel, and engraved band members autographs on the back. Apple sells a variety of computer accessories for Macintosh computers including the iSight video conferencing camera, the AirPort wireless networking products; Apple Cinema HD Display and Apple Displays computer displays; Mighty Mouse and Apple Wireless Mouse computer mice; the Apple Wireless Keyboard computer keyboard and the Apple USB Modem. Apple's hardware has come under fire by Greenpeace since 2004 for not setting a timeline to remove PVC, which still exists in recent products such as the iPod nano and MacBook; and for not promoting a global end-of-life take back plan for Apple hardware (although it does within Europe and Japan where it is required by law); as well as for not having reusable components.• Greenpeace lists toxic substances used in Apple products in their Apple parodying ad, including: cadmium, beryllium, lead, brominated flame retardants, hexavalent chromium, mercury.• Apple's own web site lists most of these compounds as "restricted substances" and has further information.•Apple also claims its recycling programs have processed more than 21 million pounds (9500 tonnes) of electronic equipment since 1994.• Software
Corporate affairs Critics of Apple commonly point to their vertically integrated business model, where all the hardware and software comes from one company; for many years, Apple's hardware was closed and proprietary, and Apple generally refused to adopt prevailing industry standards for hardware, instead creating and implementing their own. This trend was largely reversed in the late 1990s beginning with Apple's adoption of the PCI bus in the 7500/8500/9500 Power Macs. Logos
Headquarters Apple Computer's world corporate headquarters are located in the heart of Silicon Valley, at 1 Infinite Loop, Cupertino, California. This Apple campus has six buildings which total 850,000 sq ft. and was built in 1993 by Sobrato Development Cos. In 2006, Apple announced its intention to build a second campus on 50 acres assembled from various contiguous plots. The new campus, also in Cupertino, will be about one mile east of the current campus. Apple CEOs, 1977−present Current Apple board of directors Current Apple executives Corporate culture Apple has a long tradition of emphasizing the user experience, rather than the technology involved in delivering that experience. From this perspective, Apple’s philosophy of design is aligned with that of Nintendo (“We consider ourselves, above all else, a gaming company. We believe other companies see themselves primarily as technology companies”). This attitude is reflected in the casual manner the company switches the Mac from architecture to architecture every decade or so, presenting this to users and developers alike as an affair that changes not at all the essential character of the Mac, while industry observers and trade magazines become highly concerned over what they perceive as an enormous change in direction. Apple was one of several highly successful companies founded in the 1970s that bucked the traditional notions of what a corporate culture should look like in terms of organizational hierarchy (flat versus tall, casual versus formal attire, et cetera). Other highly successful firms with similar cultural aspects from the same time period include Southwest Airlines and Microsoft, and the relative success of these firms (whether a result of their cultural differences or not) resulted widespread adoption of informal corporate culture within the technology industry. Originally, the company stood in opposition to staid competitors like IBM more or less by default, thanks to the influence of its founders; Steve Jobs often walked around the office barefoot even after Apple was a Fortune 500 company. By the time of the "1984" TV ad, this trait had become a key way the company differentiated itself from its competitors. As the company has grown and been led by a series of chief executives, each with his own idea of what Apple should be, some of its original character has arguably been lost, but Apple still has a reputation for fostering individuality that reliably draws talented people into its employ. Furthering these lines, Apple Fellows were created. An Apple Fellow is a person who has been designated as such by Apple Computer in recognition of their extraordinary technical or leadership contributions to personal computing. Each Apple Fellow acts as a leader and a visionary, guiding the company in their particular area of expertise. The Apple Fellowship has been awarded so far to very few individuals including Bill Atkinson, Rod Holt, Alan Kay, Guy Kawasaki, Don Norman, Rich Page, and Steve Wozniak. User culture According to surveys by J. D. Power, Apple has the highest brand and repurchase loyalty of any computer manufacturer. While this brand loyalty is considered unusual for any product, Apple appears not to have gone out of its way to create it. At one time, Apple evangelists were actively engaged by the company, but this was after the phenomenon was already firmly established. Apple evangelist Guy Kawasaki has called the brand fanaticism "something that was stumbled upon." Macintosh users meet at the Apple Expo and MacWorld Expo trade shows where Apple introduces new products each year to the industry and public and Macintosh developers in turn gather at Worldwide Developers Conference. Many users show their loyalty and devotion by wearing Apple t-shirts. Apple Store openings can draw crowds of thousands, with some waiting in line as much as a day before the opening or flying in from other countries for the event. The New York City Fifth Avenue "Cube" store had a line as long as half a mile; a few Mac fans took the opportunity of the setting to propose marriage. The Ginza opening in Tokyo was estimated in the thousands with a line exceeding eight city blocks. John Sculley told the Guardian newspaper in 1997: "People talk about technology, but Apple was a marketing company. It was the marketing company of the decade." Market research indicates that Apple draws its customer base from an unusually artistic, creative, and well-educated population, which may explain the platform’s visibility within certain youthful, avant-garde subcultures.• Furthermore, conventional wisdom holds that the platform appeals especially to the politically liberal-minded; even Steve Jobs speculates that “maybe a little less” than half of Apple’s customers are Republicans, “maybe more Dell than ours.”• Accurate or not, this perception can only be reinforced by the company's pattern of political donations,• by Al Gore’s membership on its board,• and surely not least by Jobs’ own personal history.• Notable litigation Apple's earliest court action dates to 1978 when Apple Records, The Beatles-founded record label, filed suit against Apple Computer for trademark infringement. The suit settled in 1981 with an amount of US$80,000 being paid to Apple Corps. As a condition of the settlement, Apple Computer agreed to stay out of the music business. The case arose in 1989 again when Apple Corps sued over the Apple IIGS, which included a professional synthesizer chip, claiming violation of the 1981 settlement agreement. In 1991 another settlement of around US$26.5 million was reached. In September 2003 Apple Computer was sued by Apple Corps again, this time for introducing the iTunes Music Store and the iPod, which Apple Corps believed was a violation of the previous agreement by Apple Computer not to distribute music. The trial began on March 27, 2006 in the UK and ended on May 8, 2006 with victory for Apple Computer. The judge ruled the company's iTunes Music Store did not infringe on the trademark of Apple Corps. At the present time The Beatles' songs are not available for download from any legal music download sites, including the iTunes Music Store. The announcement of a move into downloading TV and films on September 13 2006 may well be seen as another cause for this litigation to continue. In 1982 Apple filed a lawsuit against Franklin Computer Corp., alleging that Franklin's ACE 100 personal computer used illegal copies of Apple's operating system and ROM. Apple v. Franklin established the fundamental basis of copyright of computer software. When developing the Macintosh, Apple decided to embed a "smoking gun" in its firmware to make it easier to detect copying, and the original Macintosh shipped with an encrypted "Stolen from Apple" icon in ROM. In 1988 Apple sued Microsoft and Hewlett-Packard on the grounds that they infringed Apple's copyrights on a GUI, particularly design elements such as the "Trash." The Apple Computer, Inc. v. Microsoft Corp. trial lasted for four years. The ruling was decided against Apple, on the grounds that Apple had actually (unintentionally) licensed the intellectual property to Microsoft as part of the agreement that gave Microsoft early access to the information necessary to develop Macintosh software, and the concept of a GUI was no longer the domain of Apple alone. In the most recent previously unrelated lawsuit, Apple entered into a class action settlement, upheld on December 20, 2005 following an appeal, regarding the battery life of iPod music players sold prior to May 2004. Eligible members of the class are entitled to extended warranties, store credit, cash compensation, or battery replacement. Creative also recently filed a patent dispute alleging that Apple infringed on one of Creative's patents for their Zen player with the iPod and iPod nano. However, on August 23 2006, Apple and Creative settled their patent disputes for $100 million. See also Further reading | |||||||||||||||||||||||||||||||||||
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