Chondrocyte shape and volumetric concentration change as a function of depth in articular cartilage. A given chondrocyte shape produces different effects on the global material properties depending on the structure of the collagen fiber network. The shape and volumetric concentration of chondrocytes in articular cartilage appear to be related to the mechanical stability of the matrix. The present study was aimed to investigate, theoretically, the effects of the structural arrangement of the collagen fiber network, and the shape and distribution of chondrocytes, on the global material behavior of articular cartilage. Articular cartilage was assumed to be a four-phasic composite comprised of a matrix (associated with the properties of the proteoglycan structure), vertically and horizontally distributed collagen fibers, and spheroidal inclusions representing chondrocytes. A solution for composite materials was used to estimate the global, effective material properties of cartilage. Only the elasticity of the solid phase was investigated in the present study. Our simulations suggest that a soft, spheroidal cell inclusion in a fiber-reinforced proteoglycan matrix affects the material properties differently depending on the shape of the spheroidal inclusions. If the long axis of the inclusions is parallel to the collagen fibers, as in the deep zone, the soft inclusions increase the stiffness of the composite in the fiber direction, and reduce the stiffness of the composite in the direction normal to the fibers. Furthermore, we found that Young's modulus normal to the contact surface increases from the superficial to the deep zone in articular cartilage by a factor of 10-50, a finding that agrees well with experimental observations. Our analysis suggests that the combination of proteoglycan matrix, fiber orientation, and shape of chondrocytes are intimately related and are likely adapted to optimize the mechanical stability and load carrying capacity of the structure.