Welcome to Apple…
Apple, Inc.
Mission Statement:
“Apple is committed to bringing
the best personal computing
experience to students,
educators, creative professionals
and consumers around the world
through its innovative hardware,
software and Internet offerings.”
History of Apple, Inc.
1976
• Apple Computer Company founded.
1983 -1984
• Enters Fortune 500.
• John Sculley becomes president and CEO.
• Apple airs “1984” during Super Bowl.
1985
• Jobs forced out of company
1993
• Sculley forced out.
1997
• Steve Jobs returns to Apple.
2007
• Apple changes name to Apple, Inc.
SWOT
Strengths:
• Retail Store
• Products/Branding
• Steve Jobs
• Marketing/
Advertising
• Innovation
Weaknesses:
• Non-Compatibility
• Price
• Proprietary
Opportunities:
• Stock Investments
• Jobs-Moving Up
Threats:
• Copy-Cat Products
• Market Share-PC’s
• Too Broad
• Steve Jobs Health
What Does Apple Do?
• Apple is an innovative company that
manufactures, markets, and sells many
kinds of consumer electronic devices.
• Apple has developed a series of
computers, phones, portable media
players, software, and many other
products that have advanced technology
from what it used to be, as well as
creating new needs from the consumers.
Profile - Apple Corporation
Financial Results for 07’
• 2007: Revenue-$9.6 billion & net quarterly
profit of $1.58 billion.
• 2006: Revenue-$7.1 billion & net quarterly
profit of $1 billion.
• Gross margin increased from 31.2% to
34.7% a year ago. International sales
account for 45% of revenue.
Share Holders:
• As of November 2, 2007, there were 30,336
shareholders of record.
Where is Apple Located?
• Apple’s main headquarters is located at 1
Infinite Loop, Silicon Valley, California.
Where is Apple Located?
• Apple has also expanded internationally
with locations in Cork, Ireland and
Silicon Valley, Singapore.
Cork, Ireland
Silicon Valley, Singapore
Where is Apple Located?
• Apple has over 200 retail locations across the
U.S. To find a store nearest you, Apple’s main
website provides a search engine that can
provide that information.
Apple Products
History of Apple Products
1977 Apple II (first personal computer)
• Cost $1,298
• 1 MHz microprocessor and 4-48 KB of RAM.
1983-Lisa
• Cost $10,000
• 5 MHz processor and 1 MB of RAM.
1984 Macintosh
• Cost $2,495
• 8 MHz processor and 128-512 KB of RAM.
*1985 Steve Job’s forced out
1987 Macintosh II
• Cost $3,898
• 16 MHz processor and 128-512 KB of RAM.
*1997 Steve Job Returns
TODAY…
iMac All-In-One
2008 iMac- All-In-One
• Cost $1,199-$2,199
• 20” – 24” screens.
• 2.4-3.06 GHz processor, 4 GB of RAM, and
• 250-500GB of Storage Space.
• CD / DVD burner drive.
• iSight camera- you can video chat with
friends and family.
• iLife ’08-photo, iDVD, iWeb: create a photo
book, make a movie, build a blog, compose a
song, etc…
The iPod
• 160 GB iPod Classic:
$349





40,000 songs for
Weighs 5.7 ounces
200 hrs of video
Photo Album
2.5-inch Color Display
• 4 GB iPod Nano: $199
 2,000 songs for
 iPod nano commercial
• 2 GB iPod shuffle: $69
 500 songs
iPhone 3G
Twice as Fast. Half the Price
• 16 GB G3 iPhone
$349
 Cell phone
 iPod Touch
 GPS
 App Store
 Calendar
 Internet: browse the
web, e-mail, weather,
take notes, view
maps, etc...
Other Apple Products
MacBook Air
Commercial
•
Cost $1,799
•
0.16-0.76” in total thickness and weighs only 3 pounds.
•
1.8GHz processor.
•
Wireless- 802. 11n2 and Bluetooth 2.1.
•
No CD ROM access-Remote Disc- but it allows you to
access a CD or DVD drive from nearby PC.
MacBook
•
Cost $1,099-$1,499 with 13” screen
•
2.1-2.4 GHz processor and 2 GB of RAM
•
120-250 GB of Storage Space.
•
CD / DVD burner drive.
•
iSight camera- you can video chat with friends and
family.
•
iLife ’08- provides photo, iDVD, iWeb: allows you to
create a photo book, make a movie, build a blog,
compose a song, etc…
BALANCE SHEET
Annual Financials for Apple Inc.
View Ratios
Assets
Fiscal year is October-September. All values USD millions.
2010
2011
2012
2013
2014
Cash & Short Term Investments
25.62B
25.95B
29.13B
40.55B
25.08B
Cash Only
1.69B
2.9B
3.11B
8.71B
13.84B
Short-Term Investments
23.93B
23.05B
26.02B
31.84B
11.23B
Total Accounts Receivable
9.92B
11.72B
18.69B
20.64B
27.22B
5.51B
5.37B
10.93B
13.1B
17.46B
Accounts Receivables, Gross
5.57B
5.42B
11.03B
13.2B
17.55B
Bad Debt/Doubtful Accounts
(55M)
(53M)
(98M)
(99M)
(86M)
4.41B
6.35B
7.76B
7.54B
9.76B
1.05B
776M
791M
1.76B
2.11B
Finished Goods
1.05B
776M
791M
1.08B
-
Work in Progress
0
0
0
0
-
Raw Materials
0
0
0
683M
-
Progress Payments & Other
0
0
0
-
-
5.08B
6.54B
9.04B
10.34B
14.12B
4.93B
5.82B
7.84B
10.34B
14.12B
41.68B
44.99B
57.65B
73.29B
68.53B
Accounts Receivables, Net
Other Receivables
Inventories
Other Current Assets
Miscellaneous Current Assets
Total Current Assets
5-year
trend
2010
2011
2012
2013
2014
4.77B
7.78B
15.45B
16.6B
20.62B
7.23B
11.77B
21.89B
28.52B
-
Buildings
1.47B
2.06B
2.44B
3.31B
-
Land & Improvements
-
-
-
-
-
Computer Software and Equipment
-
-
-
-
-
Other Property, Plant & Equipment
2.17B
2.78B
3.71B
3.97B
-
2.47B
3.99B
6.44B
11.92B
-
Total Investments and Advances
25.39B
55.62B
92.12B
106.22B 130.16B
Other Long-Term Investments
25.39B
55.62B
92.12B
106.22B 130.16B
Long-Term Note Receivable
0
0
0
0
-
Intangible Assets
1.08B
4.43B
5.36B
5.76B
8.76B
Net Goodwill
741M
896M
1.14B
1.58B
4.62B
Net Other Intangibles
342M
3.54B
4.22B
4.18B
4.14B
2.26B
3.56B
5.48B
5.15B
3.76B
1.46B
1.96B
2.48B
5.15B
3.76B
75.18B
116.37B 176.06B 207B
Net Property, Plant & Equipment
Property, Plant & Equipment - Gross
Accumulated Depreciation
Other Assets
Tangible Other Assets
Total Assets
231.84B
5y
e
ar
tr
e
n
d
Long-Term Debt
Long-Term Debt excl. Capitalized
Leases
Non-Convertible Debt
0
0
0
16.96B 28.99B
0
0
0
16.96B 28.99B
0
0
0
16.96B -
0
0
0
0
-
0
0
0
0
-
Provision for Risks & Charges
0
0
0
0
-
Deferred Taxes
4.3B
8.16B
13.85B 16.49B -
Deferred Taxes - Credit
4.3B
8.16B
13.85B 16.49B 0
Deferred Taxes - Debit
0
0
0
0
-
2.37B
3.63B
5.47B
6.34B
27.86B
Other Liabilities (excl. Deferred
Income)
1.23B
1.94B
2.82B
3.72B
24.83B
Deferred Income
1.14B
1.69B
2.65B
2.63B
3.03B
Convertible Debt
Capitalized Lease Obligations
Other Liabilities
Total Liabilities
27.39B 39.76B 57.85B 83.45B
120.29
B
Non-Equity Reserves
0
0
0
0
-
Preferred Stock (Carrying Value)
0
0
0
0
-
Redeemable Preferred Stock
0
0
0
0
-
Non-Redeemable Preferred Stock
0
0
0
0
-
Common Equity (Total)
47.79B 76.62B
118.21 123.55 111.55
B
B
B
Common Stock Par/Carry Value
10.67B 13.33B 16.42B 19.76B 23.31B
Retained Earnings
37.17B 62.84B
ESOP Debt Guarantee
0
0
Cumulative Translation
(217M) 313M
Adjustment/Unrealized For. Exch. Gain
101.29 104.26
87.15B
B
B
0
0
-
(232M) (280M) -
Analyses-QR
• Quick ratio=(Current Assets-Inventories)/(Current
liabilities)
QR=(73.286-1.764)/(43.658)=1.6382
Conclusion: Apple has enough cash and liquid assets
to cover its short-term debt obligation.
Analyses-Working Capital ratio
• Working Capital ratio=(current assets)/(current
liabilities)=73.286/43.658=1.67
• Conclusion: Apple can pay all of its current
liabilities and still have current assets left over.
Fixed assets to Equity Ratio
• Fixed assets to Equity ratio=(fixed
assets)/(stockholder’s
equity)=(124.389/123.549)=1.0068
Current ratio
• Current ratio=current assets/current
liabilities=73.286/43.658=1.67
Equity
• Equity=total assets-total liabilities=207.00083.451= 123.549 B
Debt to Equity
• Debt to equity=total debt/total
equity=83.45/123.5=0.68
Return on equity
• Average stockholder’s
equity(2013)=(2013+2012)/2=(123.55+118.21)/2=
120.88
• Net profit=37b
• Roe=net profit/average stockholders
equty=37/120.88=0.3060
Return on assets
• Roa(2013)=net profit/average total
assets=37/191.53=0.19318
• Net profit:37B
• Average total
assets(2013)=(207+176.06)/2=191.53
Profitability
• Net profit=37b
• Sales volume=170.87B
• Profitability=Net profit/sales
volume=37/170.87=0.2165