PHAM HIEN LY
（范仙莉）
MA1N0241
Apple, Inc.
The iPhone Is Revealed
Capital Budgeting Techniques
Apple, Inc.
• Industry: Computer hardware, Computer software,
Consumer electronics and Digital distribution.
• Founded: April 1, 1976 (37 years ago)
• Founders: Steve Jobs, Steve Wozniak, Ronald Wayne
• Headquarters: Apple Campus, 1 Infinite Loop,
Cupertino, California, U.S.
• Number of locations: 406 retails stores (as of May
2013)
• Area served: Worldwide
Logo used since 1998
Apple, Inc.
• Apple financial history through 2011 to 2013
(According Apple annual financial reports)
• Products:
iPhone
iTunes software and services
iPad
Accessories
Mac
iPod
iPhone
• At Mac World event took place on 9/1/2007, Steve
Jobs himself has revealed to the media about
technology and Apple's first smartphone called the
iPhone.
iPhone comes with the statement "reinvent the phone" from
the late and famous CEO of Apple.
iPhone
• On January 17, 2007, Apple, Inc. introduced the iPhone,
which combines a mobile phone, an iPod, and an
Internet communications device. The phone’s Internet
connection allows users to surf the Web over Wi-Fi,
access email, watch TV shows and videos, and use
Google maps. A new interface allows the user to
communicate by touching the screen with a finger.
Another feature is that the screen will shift from portrait
to landscape view when you simply rotate the device in
your hand…
iPhone
• The first generation iPhone was released on
June 29, 2007; the most recent iPhones, the
seventh-generation iPhone 5C and iPhone 5S,
were introduced on September 10, 2013.
Release date
1st gen:
June 29, 2007
3G: July 11, 2008
3GS: June 19, 2009
4: June 24, 2010
4S: October 14, 2011
5: September 21, 2012
5C and 5S:
September 20, 2013
iPhone
Source: Wikipedia
Worldwide iPhone sales by Apple’s fiscal quarters
(Q1 2012 = Oct-Dec 2011)
Worldwide iPhone availability
Source: Wikipedia
iPhone net sales and unit sales information
for 2011, 2012 and 2013
Net sales in million and unit in thousand
(According Apple Annual Financial Report – 2013)
Capital Budgeting Techniques
• Capital Budgeting
– Process of evaluating investment opportunities
– The final list of approved projects is referred to as the
capital budget
• 3 most popular capital budgeting techniques: Payback period,
Net Present Value (NPV) and Internal Rate of Return (IRR)
Capital Budgeting Techniques
Payback Period
• Payback Period is the length of the time it
takes to recover the initial cost of an
investment.
Capital Budgeting Techniques
Net Present Value (NPV)
• Managers typically employ net present value (NPV) analysis to evaluate
domestic and international capital investment projects. NPV is the
difference between the present value of a project’s incremental cash flows
and its initial investment requirement.
Capital Budgeting Techniques
Internal Rate of Return (IRR)
• The Internal Rate of Return (IRR) is the discount rate
that equates the NPV of an investment opportunity
with $0.