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Mac Mac iPod
Mac Unit Mac Mac Mac Rev Ipod Ipod iPod Rev
Year Mon units grw grw ASP Rev grw Ipod grw ASP Rev grw
1997 Mar
June
Sep
Dec
1998 Mar
June
Sep
Dec 1.4
1999 Mar 0.8 1492 1.2
June 0.9 1430 1.3
Sep 1.1
Dec 1.4 1500 2.1 43%
2000 Mar 1.0 0.2 26% 1584 1.7 34%
June 1.0 0.1 12% 1521 1.5 19%
Sep 1.1 1447 1.6 46%
Dec 0.7 -0.7 -52% 1178 0.8 -62%
2001 Mar 0.8 -0.3 -28% 1598 1.2 -27%
June 0.8 -0.2 -19% 1481 1.2 -21%
Sep 0.9 -0.3 -24% 1414 1.2 -26%
Dec 0.7 0.1 13% 1436 1.1 38% 0.1
2002 Mar 0.8 0.1 8% 1487 1.2 1% 0.1
June 0.8 0.0 -2% 1436 1.2 -5% 0.1 407 0.0
Sep 0.7 -0.1 -14% 1490 1.1 -9% 0.3 370 0.1
Dec 0.7 0.0 0% 1479 1.1 3% 0.2 75% 370 0.1
2003 Mar 0.7 -0.1 -13% 1546 1.1 -9% 0.1 -20% 388 0.0
June 0.8 0.0 -5% 1419 1.1 -6% 0.3 463% 365 0.1 405%
Sep 0.8 0.1 7% 1524 1.2 10% 0.3 3% 363 0.1 1%
Dec 0.8 0.1 12% 1531 1.3 15% 0.7 235% 349 0.3 216%
2004 Mar 0.7 0.0 5% 1549 1.2 6% 0.8 909% 327 0.3 752%
June 0.9 0.1 14% 1442 1.3 15% 0.9 183% 290 0.2 124%
Sep 0.8 0.0 6% 1472 1.2 3% 2.0 500% 266 0.5 340%
Dec 1.0 0.2 26% 1534 1.6 26% 4.6 525% 264 1.2 373%
2005 Mar 1.1 0.3 43% 1396 1.5 29% 5.3 558% 191 1.0 284%
June 1.2 0.3 35% 1324 1.6 24% 6.2 616% 179 1.1 343%
Sep 1.2 0.4 48% 1303 1.6 31% 6.5 220% 188 1.2 126%
Dec 1.3 0.2 20% 1375 1.7 7% 14.0 207% 207 2.9 140%
2006 Mar 1.1 0.0 4% 1414 1.6 5% 8.5 61% 201 1.7 69%
June 1.3 0.1 12% 1406 1.9 19% 8.1 32% 185 1.5 36%
Sep 1.6 0.4 30% 1375 2.2 37% 8.7 35% 179 1.6 29%
Dec 1.6 0.4 28% 1501 2.4 40% 21.1 50% 163 3.4 18%
2007 Mar 1.5 0.4 36% 1495 2.3 44% 10.5 24% 160 1.7 -1%
June 1.8 0.4 33% 1436 2.5 36% 9.8 21% 160 1.6 5%
Sep 2.2 0.6 34% 1434 3.1 40% 10.2 17% 159 1.6 4%
Dec 2.3 0.7 46% 1519 3.6 47% 22.1 5% 181 4.0 17%
2008 Mar 2.3 0.8 51% 1526 3.5 54% 10.6 1% 171 1.8 8%
June 2.5 0.7 41% 1446 3.6 43% 11.0 12% 152 1.7 7%
Sep 2.6 0.4 21% 1386 3.6 17% 11.1 8% 150 1.7 3%
Dec 2.5 0.2 8% 1408 3.6 0% 22.7 3% 148 3.4 -16%
2009 Mar 2.2 -0.1 -3% 1327 2.9 -16% 11.0 3% 151 1.7 -8%
June 2.6 0.1 4% 1279 3.3 -8% 10.2 -7% 146 1.5 -11%
Sept 3.1 0.4 17% 1296 4.0 9% 10.2 -8% 154 1.56 -6%
Dec 3.4 0.8 33.2% 1324 4.5 25% 21.0 -8% 162 3.39 1%
2010 Mar 2.9 0.7 32.6% 1278 3.8 28% 10.9 -1% 171 1.86 12%
June 3.5 0.9 33.4% 1267 4.4 32% 9.4 -8% 164 1.55 4%
Sep 3.89 0.8 27.4% 1254 4.9 23% 9.1 -11% 163 1.48 -6%
Dec 4.2 0.8 25% 1247 5.2 18% 18.9 -10% 163 3.1 -9%
2011 Mar 3.7 0.7 25% 1241 4.6 21% 9.7 -11% 163 1.6 -15%
June 4.3 0.9 25% 1235 5.4 22% 8.3 -12% 163 1.4 -13%
Sep 4.9 1.0 25% 1229 6.0 23% 8.0 -12% 163 1.3 -12%
Dec 5.3 1.1 25% 1223 6.4 23% 16.6 -12% 163 2.7 -12%
2012 Mar
June
Sep
Dec
2013 Mar
June
Sep
Dec
2014 Mar
June
Sep
Dec
2015 Mar
June
Sep
Dec
Historical Data
Ave 13% 1454 15% 197% 246 150%
Meian
Min
Max
Stad
2009Dec numbers
Dec 2.339 0.0 0.0 1386 3.2 -0.09 18.8 -0.15 155 3 -27%
GuiL
GuiH
Analyst
DeoGo
Tony
2009Mar
Gros
iPhn iPhn iPhn iPa iPad iPad Total Rev s Gross
iPhn grow Rev ASP Rev % d grow ASP Rev Rev grw Profit Marg Res Res%
1.7
1.5
1.6
1.3
2.3 37%
1.9 27%
1.8 17%
1.9 40%
1.0 -57%
1.4 -26%
1.5 -19%
1.5 -22%
1.4 37%
1.5 4%
1.5 -2%
1.4 -2%
1.6 13%
1.5 1%
1.5 6%
1.6 13%
2.0 29%
1.9 27%
2.0 30%
2.4 47%
3.5 74%
3.2 70%
3.5 75%
3.7 57%
5.7 65%
4.4 34%
4.4 24%
4.8 32%
7.1 24% 2.2 31% 0.2 2.6%
5.3 21% 1.9 35% 0.2 3.5%
0.3 0.1 522 5.6 27% 2.0 37% 0.2 3.7%
1.1 0.5 437 6.6 37% 2.0 31% 0.2 3.1%
2.3 1.0 448 10.4 46% 3.4 33% 0.2 2.4%
1.7 0.8 480 8.0 51% 2.6 33% 0.3 3.4%
0.7 166% 0.5 674 243% 7.6 36% 2.7 36% 0.29 3.9%
6.9 516% 4.4 639 801% 11.5 74% 4.4 38.6% 0.30 2.6%
4.4 88% 2.9 674 184% 11.9 14% 4.5 37.9% 0.32 2.7%
3.8 123% 2.4 640 197% 9.1 14% 3.6 39.9% 0.32 3.5%
5.2 626% 3.1 588 534% 9.7 29% 4.0 40.9% 0.34 3.5%
7.4 7% 4.6 625 5% 12.2 6% 5.1 41.8% 0.36 2.9%
8.7 100% 5.4 620 84% 15.7 32% 6.4 40.9% 0.40 2.5%
8.8 131% 5.4 622 124% 13.5 49% 5.6 41.7% 0.43 3.2%
8.4 61% 5.3 635 74% 3.3 662 2.2 15.7 61% 6.1 39.1% 0.46 3.0%
14.1 91% 8.8 626 92% 4.2 667 2.8 20.3 67% 7.5 36.9% 0.49 2.4%
15.7 80% 8.8 563 63% 6.0 600 3.6 23.4 49% 8.6 37.0% 0.53 2.3%
15.8 80% 8.9 563 63% 5 600 3.0 20.6 53% 7.6 37.0% 0.5 2.3%
15.1 80% 8.5 563 60% 6 83% 600 3.6 21.5 37% 8.0 37.0% 0.5 2.3%
21.2 50% 11.9 563 35% 7 67% 600 4.2 26.2 29% 9.7 37.0% 0.6 2.3%
22.0 40% 11.1 507 26% 8 33% 540 4.3 27.7 19% 10.2 37.0% 0.6 2.3%
5 1.16 3.337 667 4.075 9.1 -0.05 35.0%
9.0
10.0
9.74 -7%
9.3
NI Shar
Opratin Ope growt es EPS EPS
SGA SGA% Exp Exp% g profit Marg NI OCF PM h (Mil) EPS Chg grw
0.06
0.05
-0.1
-0
0.02 -0.04 -67%
0.03 -0.02 -40%
0.06 0.13
0.09 0.1
0.06 0.04 200%
0.08 0.05 167%
0.13 0.07 117%
0.35 0.26 289%
0.34 0.28 467%
0.37 0.29 363%
0.5 0.37 285%
0.65 0.3 86%
0.47 0.13 38%
0.54 0.17 46%
0.62 0.12 24%
0.7 10% 0.9 12.6% 1.3 18.6% 1.0 14.2% 1.14 0.49 75%
0.7 13% 0.9 16.3% 1.0 18.7% 0.8 14.6% 0.87 0.4 85%
0.7 13% 1.0 17.1% 1.1 19.4% 0.8 15.1% 0.94 0.4 74%
0.8 12% 1.0 15.6% 1.0 15.4% 0.9 13.2% 0.97 0.35 56%
1.0 9% 1.2 11.6% 2.2 21.1% 1.6 15.7% 62% 1.82 0.68 60%
0.9 11.1% 1.2 14.5% 1.4 18.1% 1.1 13.8% 42% 1.22 0.35 40%
0.9 12% 1.2 16.0% 1.5 20.3% 1.1 15.0% 35% 903 1.25 0.31 33%
1.0 9% 1.3 11.3% 3.1 27.3% 2.2 19.5% 158% 905 2.48 1.51 156%
1.09 9% 1.4 11.8% 3.1 26.1% 2.3 19.0% 38% 901 2.50 0.68 37%
0.99 10.8% 1.3 14.4% 2.3 25.6% 1.6 17.8% 47% 903 1.79 0.57 47%
1.01 10.4% 1.4 13.9% 2.6 27.0% 1.8 18.8% 62% 909 2.01 0.76 61%
1.06 8.7% 1.4 11.6% 3.7 30.2% 2.5 20.7% 13% 914 2.77 0.29 12%
1.29 8.2% 1.7 10.8% 4.7 30.1% 3.4 21.5% 50% 920 3.67 1.17 47%
1.22 9.0% 1.6 12.2% 4.0 29.5% 3.1 22.8% 90% 923 3.33 1.54 86%
1.44 9.2% 1.9 12.1% 4.2 27.0% 3.3 20.7% 78% 927 3.51 1.5 75%
1.57 7.7% 2.1 10.2% 5.4 26.8% 4.3 5.7 21.2% 70% 929 4.64 1.87 68%
1.8 7.5% 2.3 9.8% 6.4 27.3% 4.5 19.1% 32% 934 4.77 1.1 30%
1.5 7.5% 2.0 9.8% 5.6 27.3% 3.9 19.1% 28% 940 4.19 0.86 26%
1.6 7.5% 2.1 9.8% 5.9 27.3% 4.1 19.1% 26% 946 4.34 0.828 24%
2.0 7.5% 2.6 9.8% 7.1 27.3% 5.0 19.1% 16% 951 5.26 0.621 13%
2.1 7.5% 2.7 9.8% 7.5 27.3% 5.3 19.1% 19% 957 5.52 0.749 16%
1.37 15.0% 910 1.5 -0.145
1.06
1.35
1.39 -24%
1.47
Trailin
Trailin g EPS Cash Cash/S
g Ear grw M PE MP M PE adj P/E F-PE Price Cash hare P-cash Intl%
0.03
-0.01
-0.03
0.10
0.20 567%
0.24 -2500%
0.29 -1067%
0.36 260%
0.62 210%
0.90 275%
1.19 310%
1.56 333%
1.86 200%
1.99 121%
2.16 82%
2.28 46%
2.77 49%
3.17 59% 25 79
3.57 65% 25 89
3.92 72% 25 98
4.60 66% 25 115 45%
4.95 56% 25 124 44%
5.26 47% 25 132 42%
6.77 73% 25 169 41%
7.45 62% 25 186 46%
8.02 62% 25 201 46%
8.78 67% 25 220 44%
9.07 34% 25 227
10.24 37% 20 205 25 256
11.78 47% 20 236 22.1 260 58%
13.28 51% 20 266 18.1 14.8 14.8 240 46 44 196 52%
15.15 67% 20 303 20.0 12.7 12.9 240 49 48 192 57%
16.25 59% 20 325 20.0 11.6 12.1 240 53 51 189
17.11 45% 20 342 14.0 10.9 11.5 240 56 54 186
17.94 35% 20 359 13.4 10.2 10.9 240 59 57 183
18.56 23% 20 371 12.9 9.6 10.6 240 63 61 179
19.31 19% 20 386 12.4 9.0 10.2 240 67 65 175
5.1144 0.1216
Mac
Annua Mac Unit Mac Rev
Year l Data units grw Mac grw Mac ASP Mac Rev grw Software Soft grw
1997
1998
1999
2000
2001
2002
2003
3.01 1491 4.49 0.64
2004
3.29 0.3 9% 1496 4.92 10% 0.82 27%
2005
4.53 6.28 1.09
2006
5.30 7.38 1.28
2007
7.05 10.31 1.51
2008
9.74 14.28 2.21
2009
10.40 13.78 2.41
2010
13.66 17.48 2.57
2011
17.08 21.13 2.87
2012
2013
2014
2015
Historical Data
Ave
Meian
Min
Max
Stad
2009Dec numbers
2009Mar
Peripheral
s and Note
Other book Note Rev Desk Top
Soft/Mac Hardware Hard grw Hard/Mac units Note Rev grw % of Rev units Desk Rev
0.69 1.25 2.02 45% 1.76 2.48
17% 0.95 38% 19%
1.13
1.10
1.26
1.66
1.47
1.81
2.07
Des Rev iPod Rev iPod in
grw % of Rev Ipod Ipod grw Ipod ASP iPod Rev grw use iTune
55% 0.94 0.35
4.42 1.31
22.50 4.54
39.41 7.68
51.63 8.31
54.83 9.15
54.13 8.09
50.31 8.27
44.80 7.31
16.61 2.71
Music
Music Music/iP Music/iP Sequenti iPhn Real
Music grw od in use od al grw iPhn grow iPhn rev ASP
0.04 0.00 0.00
0.28 0.00 0.00
0.90 0.00 0.00
1.89 0.00 0.00
2.50 1.39 0.63
3.34 11.63 6.74
4.04 20.73 13.03
4.95 39.98 25.01
5.84 67.73 38.13
1.59 21.99 11.14
Est. Cur Est. iPhn iPhn Rev
iPhn Rev rev iPhn Rev % Total Rev Rev grw Gro Inc Opra Inc NI
#REF! 6.21 0.00 0.00 0.00
#REF! 8.28 0.00 0.00 0.00
#REF! 13.93 0.00 0.00 0.00
#REF! 19.32 0.00 0.00 0.00
#REF! 24.58 8.15 4.41 3.50
#REF! 37.49 13.20 8.33 6.12
#REF! 42.91 17.22 11.74 8.24
#REF! 65.23 25.68 18.39 14.01
#REF! 91.76 33.95 25.00 17.50
#REF! 27.69 10.25 7.55 5.28
Gross Ope Shares Trailing Trailing
Marg Marg PM (Mil) EPS EPS grw Ear EPS grw
0.10
0.36
1.56
2.28
3.92
6.77
9.07
15.15
18.56
5.52
Fisical Year 1997 1998 1999 2000 2001 2002 2003 2004
Growth rate:
Mac -32% 0% -3% 9%
Ipod 146% 370%
Iphone
iPad
Unit Sales:
Mac 4.6 3.1 3.1 3.0 3.3
Ipod 0.4 0.9 4.4
Iphone
iPad
iTune Songs 25 175
Units change
Mac -1.5 0.0 -0.1 0.3
Ipod 0.6 3.5
Iphone
Market size:
world population
PC(Calendar Year) 93.3 113.5 140 125 137 153 183
PC growth rate 22% 24% -11% 9% 12% 20%
MP3 palyer 1 10 51
Phone
Smart Phone
SmartPhone/Cell Phone
Growth% of Smart Phones
Tablets
Market Share:
Mac 3.3% 2.5% 2.3% 2.0% 1.8%
Ipod 38% 9% 9%
Iphone
iphone/smart phone
tablets
$ASP:
Mac 1973 1760 1474 1511 1426 1462 1491 1496
Ipod 375 367 296
Iphone hardware+assessory
iPad+assessory
SALES:
Mac 5.67 4.86 5.08 6.89 4.40 4.53 4.49 4.92
Ipod 0.14 0.35 1.31
Iphone
1.41
Software, Service and Other Sales 1.08 1.05 1.10 0.57 0.53 0.64 0.82
Periferals and other Hardware 0.39 0.53 0.69 0.95
Music(App) and iPod assessory 0.004 0.04 0.28
iPad and assessory
Total revenue(bil) 6.1 8 5 6 6 8
rev grow rate -33% 7% 8% 33%
Next 5year Rev growth rate 12% 29% 34% 43% 39%
GROSS MARGIN:
Mac 27% 26% 23% 28% 27% 27%
Ipod 40% 34% 30%
Iphone
Software, Service and Other Sales 30% 30% 25% 30% 30% 30%
Periferals and other Hardware 20% 25% 25% 25%
Music and iPod assessory 15% 15% 15%
iPad
Estimated Average GM 27.5% 26.6% 23.0% 27.8% 27.4% 27.1%
Actual GM 27.6% 27.1% 23.0% 27.9% 27.5% 27.3%
Gross Profit 1.69 2.16 1.23 1.60 1.71 2.26
OPERATING MARGIN:
Research/Sales 5.9%
Selling, General, Administrative/Sells 17.3%
operating expense/Sales 21.7% 20.6% 29.4% 27.6% 27.5% 23.4%
Operating Margin 5.9% 6.5% -6.4% 0.3% 0.0% 3.9%
Research 0.491
Selling, General, Administrative 1.43
operating expense 1.33 1.64 1.58 1.59 1.71 1.93
Operatinig Income 0.36 0.52 -0.34 0.02 0.00 0.33
INTEREST INCOME:
Cash
Interest earned on cash
interest income
interest expense
Net Interest Income
EBIT
tax rate
Tax$
Net Income 0.60 0.79 -0.04 0.07 0.07 0.27
Profit Margin 9.8% -0.5% 1.1% 1.1% 3.3%
NI growth 31% -105% -276% 5% 291%
# of shares 720 691 723 726 775
share growth -4.0% 4.6% 0.4% 6.7%
EPS 1.1 (0.1) 0.1 0.1 0.4
EPS growth -106% NA 11% 260%
Average 5 year forward EPS growth 7% -307% 113% 132% 91%
PE
etm market price 93 104 116 130 146
Actual Price (calendar year end) 7.44 10.95 7.17 10.69 32.2
price change 47% -35% 49% 201%
P/E 7 (183) 80 107 89
Bullish Action Chart
Buy Overweight Leap Call Call Market Price
Discount -20% -30% -40% -50% 9/23/09
Price 184 161 138 115 $ 100
Sensitivity analysis on 5 year PE and discount rate
230 8% 9% 10% 11% 12% 13% 14% 15%
15 247 242 238 234 230 225 222 218
18 247 242 238 234 230 225 222 218
20 247 242 238 234 230 225 222 218
25 247 242 238 234 230 225 222 218
30 247 242 238 234 230 225 222 218
35 247 242 238 234 230 225 222 218
40 247 242 238 234 230 225 222 218
Key assumptions actual numbers
Mac Ipod Iphone All Iphone Price Monthly reconginzed
Price #REF!
Growth rate (YOY) 20% 7% 30% 400 17
Profit Margin 15% 15% 40%
P/E model assumptions
PE
Discount rate in 5 years
12.0% 15
Notes:
Rev and EPS data have been updated since finscial 2007 to refelct the change of accounting since fisical 2010Q1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
38% 17% 33% 38% 7% 32% 23% 20% 15% 12%
408% 76% 31% 6% -1% -8% -12% -15% -15% -15%
736% 78% 93% 65% 35% 25% 20%
184% 30% 25% 20%
4.5 5.3 7.1 9.7 10.4 13.7 17 20 23 26
22 39 52 55 54.1 50 44 38 32 27
1.39 11.63 20.7 40.0 66 89 111 134
7.5 21.2 27.5 34.4 41.3
650 1150 2000 2500
1.2 0.8 1.7 2.7 0.7 3.3 3.1 3.4 3.0 2.8
18.0 17.0 12.2 3.2 -0.7 (4) (6) (7) (6) (5)
10.2 9.1 19.2 26.0 23 22 22
6679 6759 6840 6918 6996 7075 7155
210 239 271 298 308 339 370 403 431 461
15% 14% 13% 10% 3% 10% 9% 9% 7% 7%
101 135 162 178.2 180 171 162 154 147 125
957 1150 1250 1190 1357 1479 1612 1708 1811
126.5 139 172 270 370 451 530 616
11% 11% 14.5% 18% 25% 28% 31% 34%
10% 24% 56% 37% 22% 17% 16%
10.1 40.3 60.4 75.5 86.8
2.2% 2.2% 2.6% 3.3% 3.4% 4.0% 4.5% 5.0% 5.4% 5.6%
22% 29% 32% 31% 30% 29% 27% 24% 22% 22%
1% 2% 3% 4% 5.5% 7% 7%
8.3% 12.0% 14.8% 18% 20% 21.0% 21.7%
74% 53% 46% 46% 48%
1384 1391 1466 1478 1333 1280 1254 1229 1205 1181
202 195 161 167 149 165 161 157 153 153
450 667 588 628 597 567 538 512
665 599 569 540 513
6.28 7.38 10.34 14.4 13.86 17.5 21 25 28 30.7
4.54 7.68 8.31 9.2 8.09 8.3 7 6 5 4.2
0.6 6.7 13.03 25.1 39 50 60 68
1.09 1.28 1.51 2.21 2.41 2.6 3.2 3.7 4.2 4.6
1.13 1.10 1.30 1.69 1.48 1.7 1.9 2.2 2.5 2.8
0.90 1.89 2.50 3.3 4.0 4.8 5.5 6.3 6.9 7.6
5.0 12.7 15.7 18.6 21.2
14 19.315 24.58 37.5 42.9 65.2 91 109 125 139
68% 39% 27% 53% 14% 52% 39% 20% 15% 11%
36% 36% 35% 27% 27% 19% 13% 10% 9% 8%
29% 29% 40% 40% 38% 38% 37% 36% 35% 34%
30% 32% 30% 30% 30% 30% 30% 30% 30% 30%
60% 58% 57% 52% 50% 48% 46% 44%
35% 35% 40% 40% 40% 40% 40% 40% 40% 40%
30% 30% 30% 30% 30% 30% 30% 30% 30% 30%
15% 15% 15% 15% 15% 15% 15% 15% 15% 15%
35% 33% 31% 30% 29%
29.0% 29.3% 34.1% 38.1% 39.9% 40.2% 40.2% 39.3% 38.3% 37.1%
29.0% 29.0% 33.2% 35.2% 40.1% 39.4%
4.04 5.60 8.15 13.20 17.22 25.7 36 43 48 52
3.8% 3.7% 3.2% 3.0% 3.1% 2.7% 2.6% 2.4% 2.3% 2.1%
13.4% 12.6% 12.1% 10.0% 9.7% 8.5% 8.2% 7.9% 7.6% 7.3%
17.2% 16.3% 15.2% 13.0% 12.8% 11.2% 10.7% 10.3% 9.8% 9.4%
11.8% 12.7% 17.9% 22.2% 27.4% 28.2% 29.4% 29.0% 28.5% 27.7%
0.535 0.712 0.782 1.11 1.33 1.78 2.3 2.7 2.9 3.0
1.864 2.433 2.963 3.76 4.15 5.52 7.4 8.6 9.4 10.1
2.39 3.15 3.75 4.87 5.48 7.30 9.7 11.2 12.3 13.1
1.65 2.45 4.407 8.327 11.740 18.385 26.7 31.7 36 39
8.26 10.11 15.39 24.49 33.99 45.99 60 60 60 60
4.58% 5.27% 3.44% 1.43% 1.00% 2.00% 2.50% 3.00% 3.00%
0.394 0.647 0.653 0.407 0.4 1.2 1.5 1.8 1.8
0.05 0.03 0.08
0.394 0.599 0.620 0.326 0.155 1.20 1.50 1.80 1.80
2.85 5.006 8.947 12.07 18.54 27.90 33.15 37.36 40.41
29% 30% 32% 32% 24% 30% 30% 30% 30%
0.83 1.51 2.83 3.83 4.5 8.37 9.95 11 12
1.33 1.99 3.495 6.119 8.235 14.0 19.5 23.2 26.2 29.2
9.6% 10.3% 14.6% 16.3% 19.2% 21.5% 21.5% 21.3% 20.9% 20.9%
399% 50% 76% 75% 35% 70% 39% 19% 13% 11%
857 878 889 902 907 925 943 962 981 1001
10.6% 2.4% 1.3% 1.4% 0.5% 2.0% 2.0% 2.0%
1.55 2.27 3.93 6.78 9.08 15.15 20.71 24.12 26.65 29.13
331% 46% 73% 73% 34% 67% 37% 16% 10% 9%
58% 56% 44% 31.5% 26% 16% 10% 8% 7% 6%
28 19 18 18 17 17
163 183 205 230 257 288 373 434 453 495
71.89 84.84 198.1 85 211
123% 18% 133% -57% 147%
46 37 50 13 23
16% 17% 18% 19% 20%
214 210 207 203 200
214 210 207 203 200
214 210 207 203 200
214 210 207 203 200
214 210 207 203 200
214 210 207 203 200
214 210 207 203 200
y reconginzed
nce fisical 2010Q1
2015 2016 2017 2018 2019 2020 2021 2022 2023
10% 9% 8% 7% 6% 6% 6% 6% 6%
-10% -10% -10% -10% -10% -5% -5% -5% -5%
15% 10% 10% 10% 10% 10% 10% 10% 10%
20% 15% 10% 10% 10% 5% 5% 5% 5%
29 31 34 36 38 40 43 45 48
24 22 20 18 16 15 14 14 13
154 169 186 204 225 247 272 299 329
50 57 63 69 76 80 84 88 92
2.6 3 2 2 2 2 2 3 3
(3) (2) (2) (2) (2) (1) (1) (1) (1)
20 15 17 19 20 22 25 27 30
7236 7318 7400 7484 7568 7654 7,737 7,822 7,907
494 528 565 593 623 654 687 721 750
7% 7% 7% 5% 5% 5% 5% 5% 4%
112 101 91 82 74 70 66 63 60
1920 2035 2157 2243 2333 2426 2523 2624 2729
691 773 863 942 1003 1068 1135 1207 1283
36% 38% 40% 42% 43% 44% 45% 46% 47%
12% 12% 12% 9% 6% 6% 6% 6% 6%
95
5.8% 6% 6% 6% 6% 6% 6% 6% 6%
22% 22% 22% 22% 22% 22% 22% 22% 22%
8% 8% 9% 9% 10% 10% 11% 11% 12%
22.2% 22% 22% 22% 22% 23% 24% 25% 26%
52%
1157 1134 1111 1089 1067 1046 1025 1004 984
153 153 153 153 153 153 153 153 153
501 491 481 472 462 453 444 435 426
500 488 476 464 452 445 439 432 426
33 35 37 39 41 42 44 46 47
3.7 3 3 3 2 2 2 2 2
77 83 89 96 104 112 121 130 140
5.0 5.3 5.6 5.9 6.1 6.3 6.6 6.8 7.1
3.0 3.2 3.4 3.5 3.7 3.8 4.0 4.1 4.3
8.4 9.2 10.1 11.2 12.3 12.9 13.5 14.2 14.9
24.8 28 30 32 34 35 37 38 39
155 167 179 191 204 215 228 241 255
11% 8% 7% 7% 7% 6% 6% 6% 6%
7% 6% 6% 6% 6% 6% 6% #REF!
34% 34% 34% 34% 34% 34% 34% 34% 34%
30% 30% 30% 30% 30% 30% 30% 30% 30%
44% 44% 44% 44% 44% 44% 44% 44% 44%
40% 40% 40% 40% 40% 40% 40% 40% 40%
30% 30% 30% 30% 30% 30% 30% 30% 30%
15% 15% 15% 15% 15% 15% 15% 15% 15%
29% 29% 29% 29% 29% 29% 29% 29% 29%
37.2% 37.1% 37.1% 37.2% 37.2% 37.3% 37.4% 37.6% 37.7%
58 62 66 71 76 80 85 91 96
9% 9% 9% 9% 9% 9% 9% 9% 8%
27.9% 27.9% 28.0% 28.2% 28.3% 28.5% 28.7% 29.0% 29.2%
- - - - - - - - -
- - - - - - - - -
14.4 15.4 16.3 17.2 18.1 18.9 19.8 20.7 21.7
43 47 50 54 58 61 65 70 75
1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8
45 48 52 56 59 63 67 72 76
30% 30% 30% 30% 30% 30% 30% 30% 30%
13 15 16 17 18 19 20 21 23
32.4 35 37 40 43 45 48 50 53
20.9% 20.9% 20.9% 20.9% 20.9% 20.9% 20.9% 20.9% 20.9%
11% 8% 7% 7% 7% 6% 6% 6% 6%
1021 1041 1062 1083 1105 1127 1150 1173 1196
31.75 33.60 35.23 36.88 38.53 39.96 41.45 43.02 44.67
9% 6% 5% 5% 4% 4% 4% 4% 4%
5% 4% 4% 4% 4% 4% 4% #REF!
16
508
2024 2025 2026 2027 2028
6% 6% 6% 6% 6%
-5% -2% -2% -2% -2%
10% 10% 10% 10% 10%
5% 5% 5% 5% 5%
51 54 57 61 64
12 12 12 12 11
362 398 438 482 530
97 102 107 112 118
3 3 3 3 4
(1) (0) (0) (0) (0)
33 36 40 44 48
7,993 8,080 8,168 8,257 8,347
780 811 844 878 913
4% 4% 4% 4% 4%
57 56 55 54 53
2838 2952 3070 3193 3320
1348 1417 1489 1564 1644
47.5% 48.0% 48.5% 49.0% 49.5%
5% 5% 5% 5% 5%
7% 7% 7% 7% 7%
22% 22% 22% 22% 22%
13% 13% 14% 15% 16%
27% 28% 29% 31% 32%
965 945 926 908 890
153 153 153 153 153
418 410 401 393 385
419 413 407 401 395
49 51 53 55 57
2 2 2 #REF! #REF!
151 163 176 190 204
7.4 7.7 8.0 8.3 8.6
4.4 4.6 4.8 5.0 5.2
15.7 16.4 17.3 18.1 19.0
41 42 43 45 46
271 287 304 #REF! #REF!
6% 6% 6% #REF! #REF!
34% 34% 34% 34% 34%
30% 30% 30% 30% 30%
44% 44% 44% 44% 44%
40% 40% 40% 40% 40%
30% 30% 30% 30% 30%
15% 15% 15% 15% 15%
29% 29% 29% 29% 29%
37.8% 37.9% 38.1% #REF! #REF!
102 109 116 #REF! #REF!
8% 8% 8% 8% 8%
29.4% 29.6% 29.9% #REF! #REF!
- - - #REF! #REF!
- - - #REF! #REF!
22.7 23.8 24.9 #REF! #REF!
80 85 91 #REF! #REF!
1.8 1.8 1.8 1.8 1.8
81 87 93 #REF! #REF!
30% 30% 30% 30% 30%
24 26 28 #REF! #REF!
57 60 64 #REF! #REF!
20.9% 20.9% 20.9% 20.9% 20.9%
6% 6% 6% #REF! #REF!
1220 1245 1269 1295 1321
46.41 48.24 50.17 #REF! #REF!
4% 4% 4% #REF! #REF!
Last Year This Year Year1 Year2 Year3 Year4
2008 2009 2010 2011 2012 2013
Cell Phone Units(Mil) 1250 1190 1357 1479 1612 1708
Smart Phone Units 139 172 270 370 451 530
Smart Phone/Cell Phone 11% 14% 20% 25% 28% 31%
Growth 24% 56% 37% 22% 17%
Global Market share of smart phones by OS traditioal phone
2008 2009 2011 2014 2009
AAPL 8% 15% 18.0% 20%
GOOG 1% 4% 20.0% 28%
Win 12% 9% 6% 8%
Symbian/NOK 54% 47% 30% 15% 40%
RIMM 17% 20% 15% 13.0% 407
Palm 0% 1% 1% 1%
Other 9.0% 5% 10% 15%
Total 100% 100% 100% 100%
Units
2008 2009 2011 2014 2009
AAPL 11 25 67 123 AAPL 0
GOOG 1 6.7 74 172 GOOG 0
Win 16 15 22 49 Win 0
NOK/Symbian 75 81 111 92 NOK/Symbian 0
RIMM 23 34 55 80 RIMM 0
Palm 0 1.2 4 6 Palm 0
Other 13 9 37 92 Other 0
Total 139 172 370 616
By brands 2009 2011 2014
AAPL 15% 20%
NOK 47% 15%
RIMM 20% 13.0%
Palm 1% 1.0%
HTC 5% 7.5%
MOTO 5% 7.5%
Samsung 3% 5.0%
LG 2% 5.0%
Sony 2% 2.5%
Dell 2.0%
HP 1.0%
Acer 2.0%
Other PC 1% 5.0%
Other 10% 10.0%
0% 110% 0%
In terms of units, the only loser in this smartphone surge would be NOK, even it still shares #3 spot with others.
The absolute winners are AAPL and GOOG.
WIN and RIMM will see unit growth the same rate as the industry, but no gain in market share
Palm could see a significant growth in units
There might be a yet-unknown player that will change the map
Year5
2014
1811
616
34%
16%
Traditinal phone units
2010 2011 2012 2013 2014
40% 40% 40% 40% 40%
435 444 464 472 478
2011 2014 From Gartner Set 10, 2010
166% 393% http://www.gartner.com/it/page.jsp?id=1434613
1000% 2465% OS 2009 2010 2011 2014
48% 228% Symbian 80,876 107,662 141,279 264,352
37% 14% Market Share (%) 47 40 34 30
61% 132% Android 6,798 47,462 91,938 259,306
206% 410% Market Share (%) 4 18 22 30
329% 972% Research In Motion 34,347 46,923 62,198 102,580
Market Share (%) 20 18 15 12
iOS 24,890 41,462 70,740 130,393
Market Share (%) 14 15 17 15
Windows Phone 15,031 12,687 21,309 34,490
Market Share (%) 9 5 5 4
10,432
Other Operating Systems 12,588 26,017 84,453
Market Share (%) 6 5 6 10
Total Market 172,374 268,784 413,481 875,574
56% 54%
s #3 spot with others.
IDC Sept 2010 estimation
http://www.idc.com/getdoc.jsp?containerId=prUS22486010
2010 2014
40.10% 32.90%
16.30% 24.60%
17.90% 17.30%
14.70% 10.90%
6.80% 9.80%
4.20% 4.50%
100% 100%
5Year super growth model
1.Our model assumes any super growth period normally lasts only five years. Growth rate beyond 5 years is unpredictable and can
2. Ipod, for instance, launched in 2002, and declines to single digits growth rate in about 5 years. I expect growth rate for either iPho
In real world, this varies from firm to firm, but 5 years seems a reasonable average.
Simple 5-Year super growth PE model
Date 10/21/2010
market Price $ 310
Market PE 20.4
E0(2010 Sept) $ 15.15
Interest Income $ 0.40
$
Adjusted Earning (Interest income deducted) 14.75
Earining growth rate (5 years) 15.00%
E5 $ 29.67
PE in 5 years 16 5 year PE should be close to industry average, adjusted by its size and con
P5 475
discount rate 12.0%
P0(Price today, not including Cash) 269
Free Cash per share today 54 $50B cash for June 2010 Q
Intrinsic Value(P0+Free Cash) 323
P0/Intrinsic value 96%
Implied P0/E0 21
Implied PEG0 1.4
Profit Margin0 14.6%
Estimated Profit Margin 18.5%
Shares0(mil) 900.0
Shares5 1018.3
Net Income0(Bil) 4.83
Implied Net Income5(Bil) 30.2
Sales0 (Bil) 32
Implied Sale5 (Bil) 163
Implied Market Value 5 (Bil) 483
Sensitivity Analysis:
P/E in five years
323 40 35 30 25
40% $ 1,855 $ 1,630 $ 1,405 $ 1,179
35% $ 1,555 $ 1,368 $ 1,180 $ 992
30% $ 1,297 $ 1,142 $ 986 $ 831
25% $ 1,076 $ 948 $ 820 $ 693
20% $ 887 $ 783 $ 679 $ 575
15% $ 727 $ 643 $ 559 $ 475
10% $ 593 $ 526 $ 458 $ 391
5% $ 481 $ 428 $ 375 $ 321
Bullish Action Chart
Fair Value Buy Overweight Leap Call
Discount 0 -20% -30% -40%
Price $ 323 $ 259 $ 226 $ 194
Mac iPod iPhone iPad
Units2009 10 54 21
Units2014 26 27 134 41
Total growth 150% -50% 544%
Annual growth 20% -13% 45%
ASP09 1326 149 588
ASP14 1181 153 512 513
Total growth -11% 3% -13%
Annual growth -2% 1% -3%
Rev09 14 8 12 0
Rev14 31 4 68 21.2
Total growth 123% -49% 460%
Annual growth 17% -12% 41%
GM09 38% 30% 57%
GM14 34% 30% 44% 29%
GM09$
GM10
Total growth
Annual growth
Expense09
Sale General
Research
Expense14
Sale General
Research
Operating Margin09%
Operating Margin14
Operating Margin09$
Operating Margin14
Annual growth(Operaing Profit)
Interest income09
Interest income14
EBIT09
EBIT14
Annual growth
NI09
NI14
Annual growth
Shares09
Shares14
EPS09
EPS14
AAPL:
E0 5.72
Earining growth rate (5 years) 22.00%
E5 $ 15.46
PE in 5 years 18 5 year PE should be close to industry average, adjusted by its size and con
P5 278
discount rate 11.5%
P0(Price today) 161
Implied P0/E0 28
Implied PEG0 1.3
Profit Margin0 14.6%
Estimated Profit Margin 18.5%
Shares0(mil) 900.0
Shares5 1018.3
Net Income0(Bil) 4.83
Implied Net Income5(Bil) 15.7
Sales0 (Bil) 32
Implied Sale5 (Bil) 85
Implied Market Value 5 (Bil) 283
P/E in five years
161 40 35 30 25
45% 851 745 638 532
40% 714 625 536 446
35% 595 521 446 372
30% 493 431 370 308
25% 405 355 304 253
20% 330 289 248 206
15% 267 234 200 167
10% 214 187 160 134
Bullish Action Chart
Fair Value Buy Overweight Leap Call
Discount 0 -20% -30% -40%
Price $ 161 $ 129 $ 113 $ 97
Valuation by Units
Notes: I evaluate iPod, iPhone and Mac as separate units
Mac
Units (2008) 9.715
Rev 18.1
PM 14%
E0 2.534
Earining growth rate (5 years) 25.00%
E5 $ 7.73
PE in 5 years 15
MV5 116
discount rate 11.5%
MV0 67
iPhone
Units (2009) 26
ASP 573
Rev 14.9
PM 25%
E0 3.725
4 year growth rate 40%
Units (2013) 100
ASP 350
Rev(2013) 35
PM 15%
E(2013) $ 5.25
PE in 5 years 15
MV5 79
discount rate 12.0%
MV0 45
iPod
Units 54.8
Revenue 12.5
PM 14%
E0 1.75
g -10%
discount rate 11%
P0 8
PE 4.29
Total APPLE $ 119.49
years. Growth rate beyond 5 years is unpredictable and can only be assumed industry average with current information.
wth rate in about 5 years. I expect growth rate for either iPhone or iPad will follow the same pattern
FCF Modified 5-Year super growth PE model
Date 10/21/2010
market Price $ 310
Market PE 20.4
E0(2010 Sept) $ 15.15
Interest Income $ 0.40
$ 14.75
Adjusted Earning (Interest income deducted)
Earining growth rate (5 years) 15.00%
E5 $ 29.67
PE in 5 years 16
P5 475
discount rate 12.0%
P0(Price today, not including Cash) 269
Cash per share today 54
Cumulative FCF for next 5 years 127
PV of FCF next 5 years 89
Intrinsic Value(P0+Free Cash) 412
P0/Intrinsic value 75%
20 18 15 12 10 8
$ 954 $ 864 $ 729 $ 594 $ 504 $ 414
$ 805 $ 730 $ 617 $ 504 $ 429 $ 354
$ 676 $ 613 $ 520 $ 427 $ 365 $ 303
$ 565 $ 514 $ 437 $ 361 $ 310 $ 258
$ 471 $ 429 $ 367 $ 304 $ 262 $ 221
$ 391 $ 357 $ 307 $ 256 $ 222 $ 189
$ 324 $ 297 $ 256 $ 216 $ 189 $ 162
$ 268 $ 246 $ 214 $ 182 $ 161 $ 140
Call Now
-50% 3/20/10
$ 162 $ 310
Hard+Soft Music Total
3.9 4 42
7.36 8 139
89% 89% 232%
14% 14% 27%
35% 15% 41%
35% 15% 37%
17
52
197%
24%
12.8%
9.7%
3.1%
9.4%
7.3%
2.1%
29%
28%
$ 12.02
$ 38.61
26.29%
$ 12.02
$ 38.61
26.29%
$ 8.41
$ 27.03
26.29%
907
1001
1.99%
9.3
27.0
23.83%
uld be close to industry average, adjusted by its size and continous innovation
20 15 10
425 319 213
357 268 179
298 223 149
246 185 123
203 152 101
165 124 83
134 100 67
107 80 53
Call Now
-50% 7/29/09
$ 81 $ 160
1999 2000 2001 2002
Net Income 601 786 -25 65
NI growth rate 31% -103% -360%
Depr & Amort 85 84 102 118
Deferred Taxes -35 163 -36 -34
Other 147 -207 144 -60
Cash from Operations 798 826 185 89
Cap Ex -47 -107 -232 -174
Free Cash Flow $Mil
1999 2000 2001 2002
Cash from Operations 798 826 185 89
Cap Ex -47 -107 -232 -174
Free Cash Flow 751 719 -47 -85
-4% -107%
FCF-NI 150 -67 -22 -150
Free Cash Flow Valuation
Inputs:
Required return
Risk free rate 0.21%
Expected market return 10%
Market risk Premium 10%
Beta 1.54
reqiored return 15%
Adjusted required return(k) 12%
FCF0 12.61
LT g 5%
discount rate 12%
# of shares 914
k-g 7%
Price/Forward Cash flow ratio 14.3
Long Term ROE 25%
LT growth rate 5%
LT FCF plowback ratio 20%
LT FCF payout ratio 80%
Fisical Year (ends in Sept) 2010 2011 2012 2013
Years from Now 0 1 2 3
NI 14.01 19.5 23.2 26.2
NI growth rate 39% 19% 13%
FCF/NI 90% 90% 90% 90%
FCF $ 12.6 $ 17.6 $ 20.9 $ 23.5
Terminal Value(bil)
PV of FCF $ 15.70 $ 16.65 $ 16.76
Cumulative PV of FCF $ 82
PV of terminal value $ 255
Market Value0(Bil) $ 337.57
(Cash-Debt) on balance sheet 50
MV(with cash) $ 387.57
# of shares(million) 924.71
Intrinsic Value 419
Implied PE 27.66
Market Price 310
Date of market price 10/21/2010
EPS 15.15
Market PE 20
Market Price/Intrinsic Value 74%
Sensitivity Analysis
Long term growth rate of FCF
$ 419 3% 4% 5%
10% $ 450 $ 500 $ 571
11% $ 398 $ 434 $ 482
12% $ 358 $ 385 $ 419
13% $ 326 $ 346 $ 372
discount rate 14% $ 299 $ 315 $ 335
15% $ 277 $ 290 $ 306
16% $ 259 $ 269 $ 282
17% $ 243 $ 252 $ 262
18% $ 230 $ 237 $ 245
This tab calculates intrinsic value of AAPL using discounted free cash flow approach
2003 2004 2005 2006 2007 2008 TTM
69 276 1,335 1,989 3,496 4,834 5,175
6% 300% 384% 49% 76% 38% 7%
113 150 179 225 317 473 640
-11 20 52 53 78 --- ---
118 488 969 -47 1,579 4,289 5,529
289 934 2,535 2,220 5,470 9,596 11,344
-164 -176 -260 -657 -735 -1,091 -1,088
2003 2004 2005 2006 2007 2008 TTM
289 934 2,535 2,220 5,470 9,596 11,344
-164 -176 -260 -657 -735 -1,091 -1,088
125 758 2,275 1,563 4,735 8,505 10,256
506% 200% -31% 203% 80% 21%
56 482 940 -426 1239 3671 5081
2014 2015 2016
4 5 6
29.2 32.42 34.99
11% 11% 8%
90% 90% 80%
$ 26.2 $ 29.2 $ 31.5
$ 450
$ 16.68 $ 16.56
ong term growth rate of FCF
6% 7% 8%
$ 677 $ 853 $ 1,205
$ 550 $ 651 $ 819
$ 465 $ 530 $ 626
$ 405 $ 449 $ 510
$ 360 $ 391 $ 433
$ 324 $ 348 $ 378
$ 296 $ 314 $ 337
$ 273 $ 288 $ 305
$ 254 $ 266 $ 279
Apple Inc. (AAPL) Income Statement
2000-09 data.
Fiscal year ends in September. USD in millions except per share2001-09 2002-09 2003-09 2004-09
Revenue 7,983 5,363 5,742 6,207 8,279
Cost of revenue 5,817 4,128 4,139 4,499 6,020
Gross profit 2,166 1,235 1,603 1,708 2,259
Operating expenses
Research and development 380 430 446 471 489
Sales, General and administrative 1,166 1,138 1,111 1,212 1,421
Restructuring, merger and acquisition 30 26 23
Other operating expenses 98 11 (1)
Total operating expenses 1,644 1,579 1,586 1,709 1,933
Operating income(EBIT) 522 (344) 17 (1) 326
Interest Expense 16
Other income (expense) 570 308 70 93 57
Income before taxes 1,092 (52) 87 92 383
Provision for income taxes 306 (15) 22 24 107
Net income from continuing operations 786 (37) 65 68 276
Cumulative effect of accounting changes 12 1
Net income 786 (25) 65 69 276
Net income available to common shareholders 786 (25) 65 69 276
Earnings per share
Basic 1 (0) 0 0 0
Diluted 1 (0) 0 0 0
Weighted average shares outstanding
Basic 649 691 710 721 743
Diluted 721 691 724 727 775
EV/EBITDA:
EBITDA 606 (242) 135 112 476
Cash (Short and Long term) 4,027 4,336 4,337 4,566 5,464
calendar year end market price 7.44 10.95 7.17 10.69 32.2
Markt value 4,829 7,566 5,091 7,707 23,925
Enterprice value 1,102 3,547 1,070 3,141 18,461
EV/EBITDA 2 (15) 8 28 39
Apple Inc. (AAPL) Balance Sheet
2000-09 data.
Fiscal year ends in September. USD in millions except per share2001-09 2002-09 2003-09 2004-09
Assets
Current assets
Cash
Cash and cash equivalents 1,191 2,310 2,252 3,396 2,969
Short-term investments 2,836 2,026 2,085 1,170 2,495
Total cash 4,027 4,336 4,337 4,566 5,464
Receivables 953 466 565 766 774
Inventories 33 11 45 56 101
Deferred income taxes 162 169 166 190 231
Prepaid expenses
Other current assets 252 161 275 309 485
Total current assets 5,427 5,143 5,388 5,887 7,055
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 700 924 1,057 1,174 1,298
Accumulated Depreciation (387) (360) (436) (505) (591)
Net property, plant and equipment 313 564 621 669 707
Equity and other investments
Goodwill
Intangible assets 119 109 97
Deferred income taxes
Other long-term assets 1,063 314 170 150 191
Total non-current assets 1,376 878 910 928 995
Total assets 6,803 6,021 6,298 6,815 8,050
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 304
Accounts payable 1,157 801 911 1,154 1,451
Accrued liabilities 776 717 747 899 1,229
Deferred revenues
Other current liabilities
Total current liabilities 1,933 1,518 1,658 2,357 2,680
Non-current liabilities
Long-term debt 300 317 316
Deferred taxes liabilities 463 266 229 235 294
Deferred revenues
Other long-term liabilities
Total non-current liabilities 763 583 545 235 294
Total liabilities 2,696 2,101 2,203 2,592 2,974
Stockholders' equity
Preferred stock 76
Common stock 1,502 1,693 1,826 1,926 2,514
Additional paid-in capital
Retained earnings 2,285 2,260 2,325 2,394 2,670
Accumulated other comprehensive income 244 (33) (56) (97) (108)
Total stockholders' equity 4,107 3,920 4,095 4,223 5,076
Total liabilities and stockholders' equity 6,803 6,021 6,298 6,815 8,050
Apple Inc. (AAPL) Statement of Cash Flow
2000-09 data.
Fiscal year ends in September. USD in millions except per share2001-09 2002-09 2003-09 2004-09
Cash Flows From Operating Activities
Net income 786 (25) 65 69 276
Depreciation & amortization 84 102 118 113 150
Deferred income taxes 163 (34) (11) 20
Stock based compensation
Accounts receivable
Inventory (13) 22 (34) (11) (45)
Other working capital 170 189 (69) 137 493
Other non-cash items (364) (103) 43 (8) 40
Net cash provided by operating activities 826 185 89 289 934
Cash Flows From Investing Activities
Investments in property, plant, and equipment (107) (232) (174) (164) (176)
Property, plant, and equipment reductions 11
Acquisitions, net (52)
Purchases of investments (4,499) (4,269) (4,144) (2,648) (3,270)
Sales/Maturities of investments 3,703 5,429 4,125 3,607 1,947
Purchases of intangibles
Other investing activities (38) (36) (7) 33 11
Net cash used for investing activities (930) 892 (252) 828 (1,488)
Cash Flows From Financing Activities
Common stock issued 85 42 105 53 427
Common stock repurchased (116) (26)
Other financing activities (300)
Net cash provided by (used for) financing activities (31) 42 105 27 127
Net change in cash (135) 1,119 (58) 1,144 (427)
Cash at beginning of period 1,326 1,191 2,310 2,252 3,396
Cash at end of period 1,191 2,310 2,252 3,396 2,969
Free Cash Flow
Operating cash flow 826 185 89 289 934
Capital expenditure (107) (232) (174) (164) (176)
Free cash flow 719 (47) (85) 125 758
EBIT
2005-09 2006-09 2007-09 2008-09 2009-09 TTM(June 2010)
13,931 19,315 24,006 32,479 42,905 57,089
9,888 13,717 15,852 21,334 25,683
4,043 5,598 8,154 11,145 17,222
534 712 782 1,109 1,333
1,859 2,433 2,963 3,761 4,149
2,393 3,145 3,745 4,870 5,482
1,650 2,453 4,409 6,275 11,740 16,622
165 365 599 620 326
1,815 2,818 5,008 6,895 12,066
480 829 1,512 2,061 3,831
1,335 1,989 3,496 4,834 8,235
1,335 1,989 3,496 4,834 8,235
1,335 1,989 3,496 4,834 8,235
2 2 4 5 9
2 2 4 5 9
808 844 865 882 893 914
857 878 889 902 907
1,829 2,678 4,726 6,748 12,474
8,261 10,110 15,386 24,490 33,992 45,839
71.89 84.84 198.1 85 211 271.38
58,087 71,605 171,357 75,279 188,155 247,922
49,826 61,495 155,971 50,789 154,163 202,083
27 23 33 8 12
2005-09 2006-09 2007-09 2008-09 2009-09 2010-06
3,491 6,392 9,352 11,875 5,263 9,705
4,770 3,718 6,034 12,615 18,201 14,583
8,261 10,110 15,386 24,490 23,464 24,288
895 1,252 1,637 2,422 3,361 3,447
165 270 346 509 455 942
331 607 782 1,447 1,135 1,216
417 475
648 2,270 3,388 5,347 3,140 6,140
10,300 14,509 21,956 34,690 31,555 36,033
1,481 2,075 2,841 3,747 4,667 6,228
(664) (794) (1,009) (1,292) (1,713) (2,238)
817 1,281 1,832 2,455 2,954 3,990
10,528 21,551
38 38 207 206 714
96 160 382 285 247 318
183 88
155 1,217 1,051 1,935 2,011 2,119
1,251 2,696 3,391 4,882 15,946 28,692
11,551 17,205 25,347 39,572 47,501 64,725
1,779 3,390 4,970 5,520 5,601 8,469
576 1,191 1,260 3,719 3,852 4,396
501 746 1,410 4,853 2,053 2,691
628 1,144 1,659
3,484 6,471 9,299 14,092 11,506 15,612
601 381 619 675
853 1,021
369 897 3,775 3,502 4,981
601 750 1,516 4,450 4,355 6,002
4,085 7,221 10,815 18,542 15,861 21,614
3,521 4,355 5,368 7,177
8,210 10,133
4,005 5,607 9,101 13,845 23,353 32,870
(60) 22 63 8 77 108
7,466 9,984 14,532 21,030 31,640 43,111
11,551 17,205 25,347 39,572 47,501 64,725
2005-09 2006-09 2007-09 2008-09 2009-09
1,335 1,989 3,496 4,834 8,235
179 225 317 473 734
52 53 78 (368) 1,040
710
(939)
(64) (105) (76) (163) 54
529 (116) 1,401 4,282 299
504 174 254 538 26
2,535 2,220 5,470 9,596 10,159
(260) (657) (986) (1,199) (1,144)
(220)
(11,470) (7,280) (11,736) (23,003) (46,825)
9,195 8,312 9,424 16,243 30,678
(69)
(21) (18) 49 (10) (74)
(2,556) 357 (3,249) (8,189) (17,434)
543 318 365 483 475
(355) (3) (124)
361 377 757 188
543 324 739 1,116 663
522 2,901 2,960 2,523 (6,612)
2,969 3,491 6,392 9,352 11,875
3,491 6,392 9,352 11,875 5,263
2,535 2,220 5,470 9,596 10,159
(260) (657) (986) (1,199) (1,144)
2,275 1,563 4,484 8,397 9,015
Date 7/12/10
Price 258.7
Discount rate 11.50%
EPS % change P0/E Future PE Theoritical price
2010Mar 11.8 21.9
2011Mar 14.82 26% 17.5
2009 9.08 28 23 213
2010E 13.75 51% 18.8 17 239
2011E 16.34 19% 15.83 16 268
2014E 20.4 17.60% 13 18 368
EPS10(S&P)
Price/Fair value 121%
AAPL KO
Date 10/25/2010 10/25/2010
Market Price 310 61.5
Trailing EPS 15.15 3.18
Trailing PE 20.5 19.3
Forward EPS(Fisical 2011) 18.83 3.83
Date of Forward EPS Sep-11 Dec-11
Forward PE 16.5 16.1
Growth last five years 50% 9.70%
Growth next five years 19% 8.50%
All esimates from Yahoo Finance
2008 % of Sales 2007 % of Sales 2006 % of Sales
Total Revenue 32,479 100% 24,006 100% 19,315 100%
Cost of Revenue, Total 21,334 66% 15,852 66% 13,717 71%
Gross Profit 11,145 34% 8,154 34% 5,598 29%
Total Operating Expense 4,870 15% 3,745 16% 3,145 16%
Selling/General/Administrative Expenses, Total 3,761 11.6% 2,963 12.3% 2,433 13%
Research & Development 1,109 3.4% 782 3.3% 712 4%
Depreciation/Amortization 0 0 0
Interest Expense (Income), Net Operating 0 0 0
Unusual Expense (Income) 0 0% 0 0% 0 0%
Other Operating Expenses, Total 0 0% 0 0% 0 0%
Operating Income 6,275 19% 4,409 18% 2,453 13%
Interest Income (Expense), Net Non-Operating 653 2% 647 3% 394 2%
Gain (Loss) on Sale of Assets 0 0% 0 0% 0 0%
Other, Net -33 0% -48 0% -29 0%
Income Before Tax 6,895 21% 5,008 21% 2,818 15%
Income Tax - Total 2,061 6% 1,512 6% 829 4%
Income After Tax 4,834 15% 3,496 15% 1,989 10%
Minority Interest 0 0 0
Equity In Affiliates 0 0 0
U.S. GAAP Adjustment 0 0 0
Net Income Before Extra. Items 4,834 15% 3,496 15% 1,989 10%
Total Extraordinary Items 0 0 0
Net Income 4,834 15% 3,496 15% 1,989 10%
Basic Weighted Average Shares 882 865 844
Basic EPS Excluding Extraordinary Items 5.48 4.04 2.36
Basic EPS Including Extraordinary Items 5.48 4.04 2.36
Diluted Weighted Average Shares 902 889 878
Diluted EPS Excluding Extrordinary Items 5.36 3.93 2.27
Diluted EPS Including Extraordinary Items 5.36 3.93 2.27
Dividends per Share - Common Stock Primary Issue 0 0 0
Gross Dividends - Common Stock 0 0 0
Interest Expense, Supplemental 0 0 0
Depreciation, Supplemental 473 317 225
Normalized EBITDA 6,794 4,726 2,678
Normalized EBIT 6,275 4,409 2,453
Normalized Income Before Tax 6,895 5,008 2,818
Normalized Income After Taxes 4,834 3,496 1,989
Normalized Income Available to Common 4,834 3,496 1,989
Basic Normalized EPS 5.48 4.04 2.36
Diluted Normalized EPS 5.36 3.93 2.27
Amortization of Intangibles 46 35 12
2005 % of Sales 2004 % of Sales 2003 % of Sales 2002 % of Sales 2001 % of Sales
13,931 100% 8,279 100% 6,207 100% 5,742 100% 5,363 100%
9,889 71% 6,022 73% 4,499 72% 4,139 72% 4,128 77%
4,042 29% 2,257 27% 1,708 28% 1,603 28% 1,235 23%
2,399 17% 1,921 23% 1,709 28% 1,586 28% 1,579 29%
1,864 13% 1,430 17% 1,212 20% 1,109 19% 1,138 21%
535 4% 491 6% 471 8% 446 8% 430 8%
0 0 0 0 0
0 0 0 0 0
0 0% 23 0% 26 0% 30 1% 0 0%
0 0% 0 0% 0 0% 1 0% 11 0%
1,643 12% 313 4% -1 0% 17 0% -344 -6%
183 1% 65 1% 83 1% 112 2% 217 4%
0 0% 0 0% 0 0% 0 0% -13 0%
-18 0% -8 0% 10 0% -42 -1% 88 2%
1,808 13% 370 4% 92 1% 87 2% -52 -1%
480 3% 107 1% 24 0% 22 0% -15 0%
1,328 10% 266 3% 68 1% 65 1% -37 -1%
0 0 0 0 0
0 0 0 0 0
0 0 1 0 12
1,328 10% 266 3% 69 1% 65 1% -25 0%
0 0 0 0 0
1,328 10% 266 3% 69 1% 65 1% -25 0%
808 743 361 355 346
1.64 0.36 0.19 0.18 0.11
1.64 0.36 0.19 0.18 0.07
857 775 363 362 346
1.55 0.34 0.19 0.18 0.11
1.55 0.34 0.19 0.18 0.07
0 0 0 0 0
0 0 0 0 0
0 3 0 0 0
179 150 113 118 102
1,822 486 112 135 -255
1,643 336 -1 17 -357
1,808 393 92 87 -52
1,328 283 68 65 -37
1,328 283 69 65 -25
1.64 0.38 0.19 0.18 0.11
1.55 0.36 0.19 0.18 0.07
9 7 10 6 21
2000 % of Sales 1999 % of Sales 2009 Q2 % of Sales 2009 Q1
7,983 100% 6,134 100% Total Revenue 8,163 100% 10,167
5,817 73% 4,438 72% Cost of Revenue, Total 5,192 64% 6,635
2,166 27% 1,696 28% Gross Profit 2,971 36% 3,532
1,644 21% 1,337 22% Total Operating Expense 1,304 16% 1,406
1,166 15% 996 16% Selling/General/Administrative 985 12% 1,091
380 5% 314 5% Research & Development 319 4% 315
0 0 Depreciation/Amortization 0
0 0 Interest Expense (Income), Net 0
90 1% 0 0% Unusual Expense (Income) 0% 0
8 0% 27 0% Other Operating Expenses, 0% 0
522 7% 359 6% Operating Income 1,667 20% 2,126
203 3% 87 1% Interest Income (Expense), Net 0% 0
367 5% 230 4% Gain (Loss) on Sale of Assets 0% 0
0 0% 0 0% Other, Net 63 1% 158
1,092 14% 676 11% Income Before Tax 1,730 21% 2,284
306 4% 75 1% Income Tax - Total 525 6% 679
786 10% 601 10% Income After Tax 0% 1,605
0 0 Minority Interest 0
0 0 Equity In Affiliates 0
0 0 U.S. GAAP Adjustment 0
786 10% 601 10% Net Income Before Extra. 0% 1,605
0 0 Total Extraordinary Items 0
786 10% 601 10% Net Income 1,205 15% 1,605
325 286 Basic Weighted Average 889
2.42 2.1 Basic EPS Excluding Extraordinary 1.81
2.42 2.1 Basic EPS Including Extraordinary 1.81
360 348 Diluted Weighted Average 901
2.18 1.81 Diluted EPS Excluding 1.78
2.18 1.81 Diluted EPS Including 1.78
0 0 Dividends per Share - Common 0
0 0 Gross Dividends - Common Stock 0
0 0
84 85 Depreciation, Supplemental 158
973 674 Normalized EBITDA 2,284
889 589 Normalized EBIT 2,126
1,092 676 Normalized Income Before Tax 2,284
786 601 Normalized Income After Taxes 1,605
786 601 Normalized Income Available to 1,605
2.42 2.1 Basic Normalized EPS 1.81
2.18 1.81 Diluted Normalized EPS 1.78
% of Sales 2008 Q4 % of Sales 2008 Q3 % of Sales 2008 Q2 % of Sales 2008 Q1 % of Sales 2007Q4
100% 7,895 100% 7,464 100% 7,512 100% 9,608 100% 6,217
65% 5,156 65% 4,864 65% 5,038 67% 6,276 65% 4,127
35% 2,739 35% 2,600 35% 2,474 33% 3,332 35% 2,090
14% 1,297 16% 1,208 16% 1,159 15% 1,206 13% 1,030
11% 999 13% 916 12% 886 12% 960 10% 823
3% 298 4% 292 4% 273 4% 246 3% 207
0 0 0 0 0
0 0 0 0 0
0% 0 0% 0 0% 0 0% 0 0% 0
0% 0 0% 0 0% 0 0% 0 0% 0
21% 1,442 18% 1,392 19% 1,315 18% 2,126 22% 1,060
0% 0 0% 0 0% 0 0% 0 0% 0
0% 0 0% 0 0% 0 0% 0 0% 0
2% 140 2% 118 2% 162 2% 200 2% 170
22% 1,582 20% 1,510 20% 1,477 20% 2,326 24% 1,230
7% 446 6% 438 6% 432 6% 745 8% 326
16% 1,136 14% 1,072 14% 1,045 14% 1,581 16% 904
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
16% 1,136 14% 1,072 14% 1,045 14% 1,581 16% 904
0 0 0 0 0
16% 1,136 14% 1,072 14% 1,045 14% 1,581 16% 904
887 884 880 876 869
1.28 1.21 1.19 1.81 1.04
1.28 1.21 1.19 1.81 1.04
905 903 899 900 895
1.26 1.19 1.16 1.76 1.01
1.26 1.19 1.16 1.76 1.01
0 0 0 0 0
0 0 0 0 0
134 117 116 106 93
1,576 1,509 1,431 2,232 1,153
1,442 1,392 1,315 2,126 1,060
1,582 1,510 1,477 2,326 1,230
1,136 1,072 1,045 1,581 904
1,136 1,072 1,045 1,581 904
1.28 1.21 1.19 1.81 1.04
1.26 1.19 1.16 1.76 1.01
% of Sales 2007Q3 % of Sales 2007Q2 % of Sales 2007Q1 % of Sales 2006Q4 % of Sales 2006Q3
100% 5,410 100% 5,264 100% 7,115 100% 4,837 100% 4,370
66% 3,415 63% 3,415 65% 4,895 69% 3,425 71% 3,045
34% 1,995 37% 1,849 35% 2,220 31% 1,412 29% 1,325
17% 954 18% 863 16% 898 13% 804 17% 759
13% 746 14% 680 13% 714 10% 625 13% 584
3% 208 4% 183 3% 184 3% 179 4% 175
0 0 0 0 0
0 0 0 0 0
0% 0 0% 0 0% 0 0% 0 0% 0
0% 0 0% 0 0% 0 0% 0 0% 0
17% 1,041 19% 986 19% 1,322 19% 608 13% 566
0% 0 0% 0 0% 0 0% 0 0% 0
0% 0 0% 0 0% 0 0% 0 0% 0
3% 155 3% 148 3% 126 2% 113 2% 95
20% 1,196 22% 1,134 22% 1,448 20% 721 15% 661
5% 378 7% 364 7% 444 6% 179 4% 189
15% 818 15% 770 15% 1,004 14% 542 11% 472
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
15% 818 15% 770 15% 1,004 14% 542 11% 472
0 0 0
15% 818 15% 770 15% 1,004 14% 542 11% 472
867 863 858 860 851
0.94 0.89 1.17 0.63 0.55
0.94 0.89 1.17 0.63 0.55
891 887 883 874 876
0.92 0.87 1.14 0.62 0.54
0.92 0.87 1.14 0.62 0.54
0 0 0 0 0
0 0 0 0 0
81 69 74 66 57
1,122 1,055 1,396 674 623
1,041 986 1,322 608 566
1,196 1,134 1,448 721 661
818 770 1,004 542 472
818 770 1,004 542 472
0.94 0.89 1.17 0.63 0.55
0.92 0.87 1.14 0.62 0.54
% of Sales 2006Q2 % of Sales 2006Q1 % of Sales 2005Q4 % of Sales 2005Q3 % of Sales 2005Q2
100% 4,359 100% 5,749 100% 3,678 100% 3,520 100% 3,243
70% 3,062 70% 4,185 73% 2,643 72% 2,476 70% 2,275
30% 1,297 30% 1,564 27% 1,035 28% 1,044 30% 968
17% 768 18% 814 14% 617 17% 617 18% 566
13% 592 14% 632 11% 471 13% 472 13% 447
4% 176 4% 182 3% 148 4% 145 4% 119
0 0 0 0 0
0 0 0 0 0
0% 0 0% 0 0% 0 0% 0 0% 0
0% 0 0% 0 0% 0 0% 0 0% 0
13% 529 12% 750 13% 418 11% 427 12% 402
0% 0 0% 0 0% 0 0% 0 0% 0
0% 0 0% 0 0% 0 0% 0 0% 0
2% 76 2% 81 1% 60 2% 46 1% 33
15% 605 14% 831 14% 478 13% 473 13% 435
4% 195 4% 266 5% 48 1% 153 4% 145
11% 410 9% 565 10% 430 12% 320 9% 290
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
11% 410 9% 565 10% 430 12% 320 9% 290
0 0 0 0 0
11% 410 9% 565 10% 430 12% 320 9% 290
841 831 827 815 808
0.49 0.68 0.52 0.39 0.36
0.49 0.68 0.52 0.39 0.36
879 874 860 861 857
0.47 0.65 0.5 0.37 0.34
0.47 0.65 0.5 0.37 0.34
0 0 0 0 0
0 0 0 0 0
50 52 51 46 41
579 802 469 473 443
529 750 418 427 402
605 831 478 473 435
410 565 430 320 290
410 565 430 320 290
0.49 0.68 0.52 0.39 0.36
0.47 0.65 0.5 0.37 0.34
% of Sales 2005Q1 % of Sales 2004Q4 % of Sales 2004Q3 % of Sales 2004Q2 % of Sales 2004Q1
100% 3,490 100% 2,350 100% 2,014 100% 1,909 100% 2,006
70% 2,494 71% 1,716 73% 1,455 72% 1,379 72% 1,470
30% 996 29% 634 27% 559 28% 530 28% 536
17% 593 17% 506 22% 487 24% 478 25% 462
14% 470 13% 382 16% 354 18% 345 18% 343
4% 123 4% 124 5% 125 6% 123 6% 119
0 0 0 0 0
0 0 0 0 0
0% 0 0% 0 0% 0 0% 0 0% 0
0% 0 0% 0 0% 8 0% 10 1% 0
12% 403 12% 128 5% 72 4% 52 3% 74
0% 0 0% 0 0% 0 0% 0 0% 0
0% 0 0% 0 0% 0 0% 0 0% 4
1% 26 1% 19 1% 13 1% 12 1% 9
13% 429 12% 147 6% 85 4% 64 3% 87
4% 134 4% 41 2% 24 1% 18 1% 24
9% 295 8% 106 5% 61 3% 46 2% 63
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
9% 295 8% 106 5% 61 3% 46 2% 63
0 0 0 0 0
9% 295 8% 106 5% 61 3% 46 2% 63
797 757 763 767 700
0.37 0.14 0.08 0.06 0.09
0.37 0.14 0.08 0.06 0.09
843 815 763 767 788
0.35 0.13 0.08 0.06 0.08
0.35 0.13 0.08 0.06 0.08
0 0 0 0 0
0 0 0 0 0
41 40 41 36 33
444 168 113 88 111
403 128 72 52 78
429 147 85 64 87
295 106 61 46 63
295 106 61 46 63
0.75 0.14 0.16 0.13 0.17
0.7 0.13 0.16 0.12 0.17
% of Sales
100%
73%
27%
23%
17%
6%
0%
0%
4%
0%
0%
0%
4%
1%
3%
3%
3%
2008 2007 2006 2005 2004 formular
Period End Date 9/27/2008 9/29/2007 9/30/2006 9/24/2005 9/25/2004
Stmt Source 10-K 10-K 10-K 10-K 10-K Formula
Stmt Source Date 11/5/2008 11/5/2008 11/15/2007 12/29/2006 12/1/2005
Stmt Update Type Updated Reclassified Reclassified Restated Reclassified
Assets
Total Cash
Cash and Short Term Investments 24,490.00 15,386.00 10,110.00 8,261.00 5,464.00 24,490.00
Cash & Equivalents 11,875.00 9,352.00 6,392.00 3,491.00 2,969.00 11,875.00
Short Term Investments 12,615.00 6,034.00 3,718.00 4,770.00 2,495.00 12,615.00
Total Receivables, Net 4,704.00 4,029.00 2,845.00 895 1,050.00 4,704.00
Accounts Receivable - Trade, Net 2,422.00 1,637.00 1,252.00 895 774 2,422.00
Accounts Receivable - Trade, Gross 2,469.00 1,684.00 1,304.00 941 821 2,469.00
Provision for Doubtful Accounts -47 -47 -52 -46 -47 -47
Receivables - Other 2,282.00 2,392.00 1,593.00 0 276 2,282.00
Total Inventory 509 346 270 165 101 509
Prepaid Expenses 475 417 208 0 0 475
Other Current Assets, Total 4,512.00 1,778.00 1,076.00 979 440 4,512.00
Total Current Assets 34,690.00 21,956.00 14,509.00 10,300.00 7,055.00 34,690.00
Property/Plant/Equipment, Total - Net 2,455.00 1,832.00 1,281.00 817 707 2,455.00
Goodwill, Net 207 38 38 69 80 207
Intangibles, Net 285 299 139 27 17 285
Long Term Investments 0 0 0 0 0 0
Note Receivable - Long Term 0 0 0 0 0 0
Other Long Term Assets, Total 1,935.00 1,222.00 1,238.00 303 191 1,935.00
Other Assets, Total 0 0 0 0 0 0
Total Assets 39,572.00 25,347.00 17,205.00 11,516.00 8,050.00 39,572.00
Liabilities and Shareholders' Equity
Accounts Payable 5,520.00 4,970.00 3,390.00 1,779.00 1,451.00 5,520.00
Payable/Accrued 0 0 0 0 0 0
Accrued Expenses 916 772 803 576 386 916
Notes Payable/Short Term Debt 0 0 0 0 0 0
Current Port. of LT Debt/Capital Leases 0 0 0 0 0 0
Other Current Liabilities, Total 7,656.00 3,538.00 2,250.00 1,132.00 814 7,656.00
Total Current Liabilities 14,092.00 9,280.00 6,443.00 3,487.00 2,651.00 14,092.00
Total Long Term Debt 0 0 0 0 0 0
Deferred Income Tax 675 619 381 308 113 675
Minority Interest 0 0 0 0 0 0
Other Liabilities, Total 3,775.00 916 397 293 210 3,775.00
Total Liabilities 18,542.00 10,815.00 7,221.00 4,088.00 2,974.00 18,542.00
Redeemable Preferred Stock 0 0 0 0 0 0
Preferred Stock - Non Redeemable, Net 0 0 0 0 0 0
Common Stock 7,177.00 5,368.00 4,355.00 3,564.00 2,514.00 7,177.00
Retained Earnings (Accumulated Deficit) 13,845.00 9,101.00 5,607.00 3,925.00 2,670.00 13,845.00
Other Equity, Total 8 63 22 -61 -108 8
Total Equity 21,030.00 14,532.00 9,984.00 7,428.00 5,076.00 21,030.00
Total Liabilities & Shareholders’ Equity 39,572.00 25,347.00 17,205.00 11,516.00 8,050.00 39,572.00
Total Common Shares Outstanding 888.33 872.33 855.26 835.02 782.89 888.33
Total Preferred Shares Outstanding 0 0 0 0 0 0
2009 Q1 2008 Q4 2008 Q3 2008 Q2 2008 Q1
Period End Date 12/27/2008 9/27/2008 6/28/2008 3/29/2008 12/29/2007
Stmt Source PRESS PRESS 10-Q 10-Q 10-Q
Stmt Source Date 1/21/2009 1/21/2009 7/23/2008 5/1/2008 2/1/2008
Stmt Update Type Updated Reclassified Updated Updated Updated
Assets
Total Cash 28,145.00 24,490.00 20,774.00 19,448.00 18,448.00
Cash and Short Term Investments 25,647.00 22,111.00 20,774.00 19,448.00 18,448.00
Cash & Equivalents 7,236.00 11,875.00 9,373.00 9,070.00 9,162.00
Short Term Investments 18,411.00 10,236.00 11,401.00 10,378.00 9,286.00
Total Receivables, Net 2,196.00 2,422.00 1,603.00 1,593.00 1,939.00
Accounts Receivable - Trade, Net 2,196.00 2,422.00 1,603.00 1,593.00 1,939.00
Accounts Receivable - Trade, Gross 2,250.00 2,469.00 1,647.00 1,637.00 1,984.00
Provision for Doubtful Accounts -54 -47 -44 -44 -45
Total Inventory 396 509 545 364 459
Prepaid Expenses 0 0 0 0 0
Other Current Assets, Total 6,924.00 7,269.00 5,076.00 5,331.00 5,343.00
Total Current Assets 35,163.00 32,311.00 27,998.00 26,736.00 26,189.00
Property/Plant/Equipment, Total - Net 2,580.00 2,455.00 2,177.00 1,962.00 1,870.00
Goodwill, Net 207 207 38 38 38
Intangibles, Net 277 285 291 300 311
Long Term Investments 2,498.00 2,379.00 0 0 0
Note Receivable - Long Term 0 0 0 0 0
Other Long Term Assets, Total 2,062.00 1,935.00 1,205.00 1,435.00 1,631.00
Other Assets, Total 0 0 0 0 0
Total Assets 42,787.00 39,572.00 31,709.00 30,471.00 30,039.00
Liabilities and Shareholders' Equity
Accounts Payable 4,715.00 5,520.00 3,683.00 4,154.00 5,366.00
Payable/Accrued 0 0 0 0 0
Accrued Expenses 3,807.00 3,719.00 882 917 2,317.00
Notes Payable/Short Term Debt 0 0 0 0 0
Current Port. of LT Debt/Capital Leases 0 0 0 0 0
Other Current Liabilities, Total 6,235.00 4,853.00 4,653.00 4,563.00 2,852.00
Total Current Liabilities 14,757.00 14,092.00 9,218.00 9,634.00 10,535.00
Total Long Term Debt 0 0 0 0 0
Deferred Income Tax 0 0 806 675 780
Minority Interest 0 0 0 0 0
Other Liabilities, Total 5,121.00 4,450.00 2,063.00 2,109.00 1,920.00
Total Liabilities 19,878.00 18,542.00 12,087.00 12,418.00 13,235.00
Redeemable Preferred Stock 0 0 0 0 0
Preferred Stock - Non Redeemable, Net 0 0 0 0 0
Common Stock 7,392.00 7,177.00 6,831.00 6,342.00 6,046.00
Retained Earnings (Accumulated Deficit) 15,448.00 13,845.00 12,714.00 11,642.00 10,684.00
Other Equity, Total 69 8 77 69 74
Total Equity 22,909.00 21,030.00 19,622.00 18,053.00 16,804.00
Total Liabilities & Shareholders’ 42,787.00 39,572.00 31,709.00 30,471.00 30,039.00
Total Common Shares Outstanding 890.41 888.33 885.75 881.43 878.63
Total Preferred Shares Outstanding 0 0 0 0 0
Financial Data from Morning Star
1997 1998 1999 2000 2001 2002 2003
Revenue $Mil 7,081 5,941 6,134 7,983 5,363 5,742 6,207
rev growth -16% 3% 30% -33% 7% 8%
Gross Margin % 19 25 28 27 23 28 28
Oper Income $Mil (1,070) 261 359 522 (344) 17 (1)
Operating Margin % (15) 4 6 7 (6) 0 0
Net Income $Mil (1,045) 309 601 786 (25) 65 69
NI grwoth% 94% 31% -103% 6%
PM 5% 10% 10% 0% 1% 1%
Earnings Per $ (2.07) 0.53 0.90 1.09 (0.04) 0.09 0.10
70% 21% -104% -325% 11%
Shares Mil 504 671 696 720 691 723 726
Book Value Per 2 3 7 6 6 6 6
Oper Cash Flow 188 775 798 826 185 89 289
Cap Spending $Mil (53) (46) (47) (107) (232) (174) (164)
Free Cash Flow 135 729 751 719 (47) (85) 125
Total Return % (37) 212 151 (71) 47 (35) 49
+/- Market (68) 185 132 (61) 60 (11) 23
+/- Industry (72) 108 70 (41) 38 (7) 4
Market Cap $Mil 1,680 5,540 16,570 4,997 7,703 5,146 7,859
Return on Assets (22) 7 13 13 (0) 1 1
Return on Equity (67) 24 27 23 (1) 2 2
Net Margin % (15) 5 10 10 (1) 1 1
Asset Turnover 1 1 1 1 1 1 1
Financial Leverage 4 3 2 2 2 2 2
Working Capital $Mil 1,606 2,178 2,736 3,494 3,625 3,730 3,530
Long-TermDebt $Mil 951 954 300 300 317 316 0
Total Equity $Mil 1,200 1,642 3,104 4,107 3,920 4,095 4,223
Debt/Equity 1 1 0 0 0 0 .
Price/Earnings . 20 29 7 . 79 112
P/E vs. Market . . . . . 4 5
Price/Sales 0 1 3 1 1 1 1
Price/Book 2 4 4 1 2 1 2
Price/CashFlow 9 9 22 7 41 58 27
2004 2005 2006 TTM 2008E
8,279 13,931 19,315 22,626 #REF!
33% 68% 39% 17%
27 29 29 33
326 1,650 2,453 3,957
4 12 13 18
276 1,335 1,989 3,134 #REF!
300% 384% 49% 58%
3% 10% 10% 14% #REF!
0.36 1.56 2.27 3.93
260% 333% 46% 73%
774 856 877 880
7 10 13 15
934 2,535 2,220 4,829
(176) (260) (657) (675)
758 2,275 1,563 4,154
201 123 18 61
192 120 4 59
171 110 (5) 31
25,893 60,587 72,901 118,892
4 14 14 15
6 21 23 23
3 10 10 14
1 1 1 1
2 2 2 2
4,375 6,816 8,038 11,753
. . . .
5,076 7,466 9,984 13,404
. . . .
91 46 31 39
5 3 2 2
3 4 4 5
5 7 7 9
27 24 20 25
UNITS (K) Revenue (M)
iPhone
and
Related
Desktops Portables Subtotal Products Desktops Portables Subtotal
(3) (4) CPUs iPod and (3) (4) CPUs iPod
1998Dec n/a n/a n/a 1,185 257 1,442
1999Mar 752 75 827 1,088 146 1,234
1999June 833 72 905 1,117 177 1,294
1999Sept n/a n/a n/a 860 252 1,112
1999 Dec 1,057 320 1,377 1,502 563 2,065
2000Mar 828 215 1,043 1,226 426 1,652
2000June 798 218 1,016 1,096 449 1,545
2000Sept 947 175 1,122 1,304 319 1,623
2000 Dec 510 149 659 546 230 776
2001Mar 562 189 751 789 411 1,200
2001June 531 296 827 705 520 1,225
2001Sept 542 308 850 741 461 1,202
2001 Dec 445 301 746 570 501 1,071
2002Mar 583 230 813 831 378 1,209
2002June 545 263 808 54 709 451 1,160 22
2002Sept 494 240 734 327 718 376 1,094 121
2002 Dec 456 287 743 219 648 451 1,099 81
2003Mar 412 299 711 80 595 504 1,099 31
2003June 420 351 771 304 535 559 1,094 111
2003Sept 473 314 787 336 697 502 1,199 122
2003 Dec 433 396 829 733 649 620 1,269 256
2004Mar 391 358 749 807 601 559 1,160 264
2004June 416 460 876 860 567 696 1,263 249
2004Sept 385 451 836 2,016 556 675 1,231 537
2004 Dec 623 423 1,046 4,580 1,001 604 1,605 1,211
2005Mar 608 462 1,070 5,311 803 691 1,494 1,014
2005June 687 495 1,182 6,155 845 720 1,565 1,103
2005Sept 602 634 1,236 6,451 787 824 1,611 1,212
2005Dec 667 587 1,254 14,043 912 812 1,724 2,906
2006Mar 614 498 1,112 8,526 833 739 1,572 1,714
2006June 529 798 1,327 8,111 705 1,161 1,866 1,497
2006Sept 624 986 1,610 8,729 869 1,344 2,213 1,559
2006Dec 637 969 1,606 21,066 955 1,455 2,410 3,427
2007Mar 626 891 1,517 10,549 914 1,354 2,268 1,689
2007June 634 1,130 1,764 9,815 270 956 1,577 2,533 1,570
2007Sept 817 1,347 2,164 10,200 1,119 1,195 1,908 3,103 1,619
2007Dec 997 1,342 2,339 22,121 2,315 1,515 2,037 3,552 3,997
2008Mar 856 1,433 2,289 10,644 1,703 1,352 2,142 3,494 1,818
2008June 943 1,553 2,496 11,011 717 1,373 2,237 3,610 1,678
2008Sept 936 1,675 2,611 11,052 6,892 1,363 2,257 3,620 1,660
Revenue (M) Unit Price
Other iPhone iPhone
Music and Peripheral Software, and
Related Related s and Service Related
Products Products Other and Other Total Desktops Portables Subtotal Products
and and Hardware Sales Apple (3) (4) CPUs iPod and
268 1,710
296 1,530 1447 1947 1492
264 1,558 1341 2458 1430
224 1,336
278 2,343 1421 1759 1500
293 1,945 1481 1981 1584
280 1,825 1373 2060 1521
247 1,870 1377 1823 1447
231 1,007 1071 1544 1178
231 1,431 1404 2175 1598
250 1,475 1328 1757 1481
248 1,450 1367 1497 1414
304 1,375 1281 1664 1436
286 1,495 1425 1643 1487
148 121 1,451 1301 1715 1436 407
379 -177 1,421 1453 1567 1490 370
218 155 1,553 1421 1571 1479 370
216 160 1,506 1444 1686 1546 388
12 162 166 1,545 1274 1593 1419 365
24 95 163 1,603 1474 1599 1524 363
47 196 238 2,006 1499 1566 1531 349
60 238 187 1,909 1537 1561 1549 327
73 219 210 2,014 1363 1513 1442 290
98 298 186 2,350 1444 1497 1472 266
177 284 213 3,490 1607 1428 1534 264
216 280 239 3,243 1321 1496 1396 191
241 266 345 3,520 1230 1455 1324 179
265 296 294 3,678 1307 1300 1303 188
491 303 325 5,749 1367 1383 1375 207
485 264 324 4,359 1357 1484 1414 201
457 236 314 4,370 1333 1455 1406 185
452 297 316 4,837 1393 1363 1375 179
634 297 347 7,115 1499 1502 1501 163
653 309 345 5,264 1460 1520 1495 160
608 5 308 386 5,410 1508 1396 1436 160 19
601 118 346 430 6,217 1463 1416 1434 159 105
808 241 382 628 9,608 1520 1518 1519 181 104
881 378 412 529 7,512 1579 1495 1526 171 222
819 419 437 501 7,464 1456 1440 1446 152 584
832 806 428 549 7,895 1456 1347 1386 150 117
Other
Music
Related iPhone and
Products Related
Desktops Portables Subtotal and Products and
Fisical Year (3) (4) CPUs iPod Service Services
Units K 2457 417 2874
1997 Rev $M 4499 1172 5671
Units K 2336 427 2763
1998 Rev $M 3949 913 4862
Units K 3098 350 3,448
1999 Rev $M $4,250 832 5,082
Units K $3,630 928 4,558
2000 Rev $M $5,128 1,757 6,885
Units K $2,145 942 3,087
2001 Rev $M $2,781 1,622 4,403
Units K 2067 1034 3,101 381
2002 Rev $M $2,828 1,706 4,534 143 4
Units K 1761 1,251 3,012 939
2003 Rev $M $2,475 2,016 4,491 345 36
Units K 1625 1,665 3,290 4,416
2004 Rev $M $2,373 2,550 4,923 1,306 278
Units K 2,520 2,014 4,534 22,497
2005 Rev $M 3,436 2,839 6,275 4,540 899
Units K 2,434 2,869 5,303 39,409
2006 Rev $M 3,319 4,056 7,375 7,676 1,885
Units K 2,714 4,337 7,051 51,630 1,389
2007 Rev $M 4,020 6,294 10,314 8,305 2,496 123
Units K 3,712 6,003 9,715 54,828 11,627
2008 Rev $M 5,603 8,673 14,276 9,153 3,340 1,844
Notes:
The data is copied from Apple Inc. 's Quarterly SEC filings (10-Q), or annual report (10k)
iPad margin
Price 500
Cost 325
Profit 175
GM 35%
Unit Price
Other
Music
Peripheral Software, Related
s and Service Products
Other and Other Total Desktops Portables Subtotal and
Hardware Sales Apple (3) (4) CPUs iPod Service
1410 7081 1831 2811 1973
1079 5941 1690 2138 1760
1052 $6,134 1372 2377 1474
1098 $7,983 1413 1893 1511
387 573 $5,363 1297 1722 1426
527 534 $5,742 1368 1650 1462 375
691 644 6207 1405 1612 1491 367
951 821 $8,279 1460 1532 1496 296
1,126 1,091 13,931 1363 1410 1384 202
1,100 1,279 19,315 1364 1414 1391 195
1,260 1,508 24,006 1481 1451 1463 161
1,659 2,207 32,479 1509 1445 1469 167
nit Price
iPhone and Peripheral Software,
Related s and Service
Products and Other and Other
Services Hardware Sales
89
159
sales
Apple Revenue history (Millions)
Q1 Q2 Q3 Q4 Year Growth Rate
2008E 8,538 6,317 6,492 7,464 28,811 20%
2007 7,115 5,264 5,410 6,220 24,009 24%
2006 5,749 4,359 4,370 4,837 19,315 39%
2005 3,490 3,243 3,520 3,678 13,931 68%
2004 2,006 1,909 2,014 2,350 8,279 33%
2003 1,472 1,475 1,545 1,715 6,207 8%
2002 1,375 1,495 1,429 1,443 5,742 7%
2001 5,363 -33%
2000 7,983 30%
1999 6,134 3%
1998 5,941 -16%
1997 7,081
Apple Revenue hisotry (billions)
Q1 Q2 Q3 Q4 Year Growth Rate
2008E 8.5 6.3 6.5 7.5 28.8 20%
2007 7.1 5.3 5.4 6.2 24.0 24%
2006 5.7 4.4 4.4 4.8 19.3 39%
2005 3.5 3.2 3.5 3.7 13.9 68%
2004 2.0 1.9 2.0 2.4 8.3 33%
2003 1.5 1.5 1.5 1.7 6.2 8%
2002 1.4 1.5 1.4 1.4 5.7 7%
2001 5 -33%
2000 8 30%
1999 6 3%
1998 6 -16%
1997 7
EPS
Q1 Q2 Q3 Q4 Year Growth Rate
2008E - 20%
2007 1.14 0.87 0.92 1.01 3.94 73%
2006 0.65 0.47 0.54 0.62 2.28 46%
2005 0.35 0.34 0.37 0.5 1.56 333%
2004 0.09 0.06 0.08 0.13 0.36 260%
2003 -0.01 0.02 0.03 0.06 0.10 0%
2002 0.06 0.06 0.05 -0.07 0.10 -267%
2001 (0.1) -106%
2000 1.1 21%
1999 0.9 73%
1998 0.5
1997
Date Adj Close price Annual return Year
1/3/2008 200
1/3/2007 85.73 133% 2007 Introduction of Iphone
1/3/2006 75.51 14% 2006
1/3/2005 38.45 96% 2005 profit hike
1/2/2004 11.28 241% 2004
1/2/2003 7.18 57% 2003
1/2/2002 12.36 -42% 2002 Internet Bubble burst
1/2/2001 10.81 14% 2001 Ipod introduced at the end of 2001
1/3/2000 25.94 -58% 2000 Internet Bubble burst
1/4/1999 10.3 152% 1999
1/2/1998 4.58 125% 1998
1/2/1997 4.16 10% 1997 Jobs return
1/2/1996 6.91 -40% 1996
1/3/1995 9.98 -31% 1995
1/3/1994 7.98 25% 1994
1/4/1993 14.33 -44% 1993
1/2/1992 15.46 -7% 1992
1/2/1991 13.12 18% 1991
1/2/1990 7.94 65% 1990
1/3/1989 8.73 -9% 1989
1/4/1988 9.52 -8% 1988
1/2/1987 6.33 50% 1987
1/2/1986 2.64 140% 1986
1/2/1985 3.31 -20% 1985
38%
Quarterly iPod Sales Figures
iPods Sold iPods Sold Q/Q iPod Sold
Date (Prev. Year) (This Quarter) Change (Total)
12/31/2001 n/a 125,000 n/a 125,000 2001 125,000
3/31/2002 n/a 57,000 n/a 182,000 2002 475,000
6/30/2002 n/a 54,000 n/a 236,000
9/30/2002 n/a 145,000 n/a 381,000
12/31/2002 125,000 219,000 75.20% 600,000
3/31/2003 57,000 80,000 40.40% 680,000 2,003 1,453,000
6/30/2003 54,000 304,000 563.00% 984,000
9/30/2003 145,000 336,000 231.70% 1,320,000
12/31/2003 219,000 733,000 334.70% 2,053,000
3/31/2004 80,000 807,000 1008.80% 2,860,000 2004 8,183,000
6/30/2004 304,000 860,000 282.90% 3,720,000
9/30/2004 336,000 2,016,000 600.00% 5,736,000
12/31/2004 733,000 4,500,000 613.90% 10,236,000
3/31/2005 807,000 5,311,000 658.10% 15,547,000 2,005 31,960,000
6/30/2005 860,000 6,155,000 715.70% 21,702,000
9/30/2005 2,016,000 6,451,000 320.00% 28,153,000
12/31/2005 4,500,000 14,043,000 312.10% 42,196,000
3/31/2006 5,311,000 8,526,000 60.50% 50,722,000 2006 46,432,000
6/30/2006 6,155,000 8,111,000 31.80% 58,833,000
9/30/2006 6,451,000 8,729,000 35.30% 67,562,000
12/31/2006 14,043,000 21,066,000 50.00% 88,628,000
3/31/2007 8,526,000 10,549,000 23.70% 99,177,000 2,007 54,564,000
6/30/2007 8,111,000 9,815,000 21.00% 108,992,000
9/30/2007 8,729,000 10,200,000 16.90% 119,192,000
12/30/07(E) 10,200,000 24,000,000
Quarterly Mac Sales Figures by calendar year
Year Quarter Mac Sales Total Fisical Year Fisical Year
Q4(E) 2000 2008
Q3 2,164
Q2 1,764
2007 Q1 1,517 7445
Q4 1,606 2007 7,051
Q3 1,610
Q2 1,327
2006 Q1 1,112 5655
Q4 1,254 2006 5,303
Q3 1,236
Q2 1,182
2005 Q1 1,070 4742
Q4 1,046 2005 4,534
Q3 836
Q2 876
2004 Q1 749 3507
Q4 829 2004 3,290
Q3 787
Q2 771
2003 Q1 711 3098
Q4 743 2003 3,012
Q3 734
Q2 808
2002 Q1 813 3098
Q4 746 2002 3,101
Q3 850
Q2 827
2001 Q1 751 3174
Q4 659 2001 3,087
Q3 1,122
Q2 1,016
2000 Q1 1,043 3840
1999 Q4 1,377 2000 4,558
1999 Q3 772
Q/Q
Change Fisical year
2002 381,000
2003 939,000
206%
2004 4,416,000
463%
2005 22,417,000
291%
2006 39,409,000
45%
2007 51,630,000
18%
2008
iPhone Profitability
Notes:According to the report, Apple's operating profit was $1.6 billion on sales of 7.4 million iPhones, generating revenue of $4
2009SeptQ
Sales 4.5
GM 58%
GP 2.61
Operating Profit 1.6
Operating Margin 36%
Operating Expense 1.01
Operating Expense% 22%
3GiPhone cost and profit Touch TouchP TouchP
Price 200 230 300 100
Subsidy 400 50 200
Total Rev 600 230 350 300
Component cost 218 160 200 200
Gross Profit 382 70 150 100
Gross Margin 64% 30% 43% 33%
iPhone Price 400
Monthly recognized 16.7
Monthly revenue sharing 18
% activation 80%
14
effective monthly rev sharing
Monthly total revenue 31
422
Cash based Qurterly total Rev from new sales
Total rev/phone 746
Operating profit 426
NI 298
PM 40%
Recognized Rev equal=(Iphone sold for previous 7 quarter*(Ave price/8)+Iphon
Cash Rev
2007 June
Q1 2007 July
2007 August
2007 September
Q2 2007 October
2007 November
2007 December
Q3 2008 January
2008 February
2008 March
Q4 2008 April
2008 May
2008 June
Q1 2008 July
2008 August
2008 September
Q2 2008 October
2008 November
2008 December
Q3 2009 January
2009 February
2009 March
Q4 2009 April
2009 May
2009 June
Q1 2009 July
2009 August
2009 September
Q2 2009 October
2009 November
2009 December
Q3 January
February
March
Q4
Q1
hones, generating revenue of $4.5 billion. Nokia's profit was $1.1 billion on sales of 108.5 million phones, generating revenue of $10.36 billio
us 7 quarter*(Ave price/8)+Iphone sold for previous 7 quarter*activation ratio*3*monthly Rev sharing)+(Iphone sold current quarter*1.5*(Ave p
ating revenue of $10.36 billion (€6.9 billion).
old current quarter*1.5*(Ave price/24)+Iphone sold current quarter*activation ratio*1.5*monthly Rev sharing)
Margin of Products
Mac SoftwareHardwareiPod Music iPhone Total
Sales 3.62 0.549 0.43 1.7 0.83 4.6 11.69
-COGS 2.41 0.33 0.28 1.10 0.59 2.44 7.15
Gross Profit 1.21 0.22 0.14 0.56 0.24 2.16 4.54
Gross Margin 34% 40% 34% 34% 29% 47% 39%
-Expense 0.40 0.06 0.05 0.18 0.09 0.51 1.297
Operating Profit 0.81 0.16 0.10 0.37 0.15 1.65 3.24
Operating Margin 22% 29% 22% 22% 18% 36% 28%
Other income 0.14
Tavable income 3.38
Tax 0.23 0.04 0.03 0.11 0.04 0.47 0.957
Effective tax rate 28% 28% 28% 28% 28% 28% 28%
Profit(NI) 0.6 0.11 0.07 0.27 0.11 1.18 2.42
Profit Margin 16% 21% 16% 16% 13% 26% 21%
Revenue contribution by product
From 2007Q3 Report Summary
2004 Dec 2005Sept 2005Dec 2006June
Units K Rev $M
Product Summary
Desktops (3) 623 1001 602 787 667 912 529 $705
Portables (4) 423 604 634 824 587 812 798 1,161
Subtotal CPUs 1046 1605 1236 1611 1254 1724 1,327 1,866
iPod 4580 1211 6451 1212 14043 2906 8,111 1,497
Other Music Related Products and Service 177 265 491 457
iPhone and RelatedProducts and Services
Peripherals and Other Hardware 284 296 303 236
Software, Service and Other Sales 213 294 325 314
Total Apple 3490 3678 5749 $4,370
Average Price 2004 Dec 2005Sept 2005Dec 2006June
Desktops (3) $1,607 $1,307 $1,367 $1,333
Portables (4) $1,428 $1,300 $1,383 $1,455
Subtotal CPUs $1,534 $1,303 $1,375 $1,406
iPod $264 $188 $207 $185
Other Music Related Products and Service $39 $41 $35 $56
Iphone rev/Iphone
Peripherals and Other Hardware/Mac $272 $239 $242 $178
Software, Service and Other Sales/Mac $204 $238 $259 $237
Mac+Other hardware+Soft, Service $2,010 $1,781 $1,876 $1,821
Ipod+Music 303 229 242 241
hard/soft ware as % of CPU Sales 31% 37% 36% 29%
music produts as % of Ipod sales 15% 22% 17% 31%
Implied Price/Iphone
Ipod Average price
Price %
Shuffle1G 79 30.0% Shuffle 79 30%
Nano4G 149 20.0% Nano4G 199 30%
Nano8G 199 20.0% Nano8G 249 30%
Ipod80G 249 15.0% Ipod80G 349 10%
Ipod160G 349 2.5%
Touch8G 299 10.0%
Touch16G 399 2.5%
100% 100%
179.25 193
Itune Profit (10/2/2002)
Revenue(cents) 99
Cost (paid to music lables) 70 71%
Gross Profit 29 29%
operating cost 19 19%
Operating Profit 10 10%
Tax 3 3%
Profit 7 7%
2006Sept 2006Dec 2007Mar 2007June 2007Sept 2007Dec
Rev $M Units K Rev $M Units K Rev $M Units K Rev $M Units K Rev $M
$624 $869 $637 $955 626 $914 634 $956 817 $1,195 997 1,515
986 1,344 969 1,455 891 1,354 1,130 1,577 1,347 1,908 1,342 2,037
1,610 2,213 1,606 2,410 1,517 2,268 1,764 2,533 2,164 3,103 2,339 3,552
8,729 1,559 21,066 3,427 10,549 1,689 9,815 1,570 10,200 1,619 22,121 3,997
452 634 653 608 601 808
270 5 1119 118 2,315 241
297 297 309 308 346 382
316 347 345 386 430 628
$4,837 $7,115 $5,264 $5,410 $6,217 9,608
2006Sept 2006Dec 2007Mar 2007June 2007Sept
$1,393 $1,499 $1,460 $1,508 $1,463 $1,520
$1,363 $1,502 $1,520 $1,396 $1,416 $1,518
$1,375 $1,501 $1,495 $1,436 $1,434 $1,519
$179 $163 $160 $160 $159 $181
$52 $30 $62 $62 $59 $37
$19 $105 $104
$184 $185 $204 $175 $160 $163
$196 $216 $227 $219 $199 $268
$1,755 $1,902 $1,926 $1,829 $1,793 $1,950
230 193 222 222 218 217
28% 27% 29% 27% 25% 28%
29% 19% 39% 39% 37% 20%
444
2008Sept Ave 2007DecEst
Rev $M Units K Rev $M
936 1,363
1,675 2,257
2,611 3,620 2,056 2,948
11,052 1,660 22,119 3,843
832 774
6,892 806 2,315 #REF!
428 329
549 449
7,895 #REF!
Ave
$1,456 $1,454 $1,463
$1,347 $1,453 $1,416
$1,386 $1,452 $1,434
$150 $169 $174
$75 $51 $35
$117 $76 $96
$164 $178 $160
$210 $223 $219
$1,761 $1,854 $1,812
225 $220 209
27% 29%
50% 30%
Leopard
