Financial Analysis Apple Inc.

Topics: Apple Inc., IPod, IPhone Pages: 6 (1505 words) Published: October 22, 2012




1. Company Background 3

2. Stock Price Analysis 6

3. Risk Return Analysis 9

5. References11

A. Company Background
Apple Inc. along with its wholly-owned subsidiaries designs and manufactures and markets mobile communication, media devices, personal computers and portable digital music players along with a variety of related software’s, services, peripherals and networking solutions. The Company offers a range of mobile communication and media devices, personal computing products, and portable digital music players, as well as a variety of related software, services, peripherals, networking solutions and third-party hardware and software products. The most important of which are enumerated below: 1. iPhone – iPhone combines a mobile phone and an iPod, Internet communication device in a single handheld product. 2. iPad – is a multi-purpose mobile device, for browsing web, sending and reading email, viewing photos & watching videos, listening music, playing games and reading e-books etc. 3. Mac Hardware Products – includes likes of iMac, Mac-Pro and Mac mini. The iMac desktop has design that incorporates display, processor, graphics, storage, and other components in a single enclosure 4. iPod – line of portable digital media players includes likes of iPod touch, iPod shuffle and iPod classic. iPod is a flash-memory-based device with a widescreen display, a Multi-Touch user interface. 5. iTunes – is an application, which supports the sale, purchase, download, organization and playback of digital video and audio files and is also available for both the Mac and the Windows based computers. The Company not only sells to retail and bulk consumers, but also to small and mid-sized businesses, and to educational institutions, enterprises and government customers. The Company’s fiscal year ends on the last Saturday of September and is of 52 or 53-week period. The company has almost 60400 permanent employees and has the second largest market cap after IBM with about 563.79 Billion dollars and an equal enterprise value, with revenues in excess of 142.36 Billion dollars and with and EBITDA of 53.27 billion dollars.

B. Business Strategy & Organization
The Company’s business strategy is to uniquely leverage its ability to design, develop its own operating system, hardware, applications software’s, to its customers, and new products and new solutions with superior usage ease and seamless integration and innovative design. The Company’s strategy, also includes and basically rests on, expanding its distribution network so in order to effectively reach more customers. The Company manages business primarily on geographical basis and has segregated the business locations of its customers into the following 1. The Americas consisting of both North and South America, 2. Europe, Middles East and Africa,

3. Japan,
4. Asia-Pacific, Australia and Asian countries and
5. Retail.
It is to be noted that all the above four segments do not include the retail segment figures and strategy. The retail segment consists of stores directly opened by the company and managed by it. C. Competition

The products and services offered by the company are a part of highly competitive markets segment it faces stiff and aggressive competition in almost all areas of its business. The market is characterized by very frequent new product introductions and a rapid technological advancement that has substantial capabilities of use of mobile and related communications devices. There is a cut throat competition in the market where the company’s operates, as the...
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