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Apple Inc.

(NASDAQ: AAPL)
May 30, 2011

Analyst Rating

About Apple Inc.


Apple Inc. (Apple) designs, manufactures and markets a range of personal computers, mobile communication and media devices, and portable digital music players, and sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications. Its products and services include Macintosh (Mac) computers, iPhone, iPad, iPod, Apple TV, Xserve, a portfolio of consumer and professional software applications, the Mac OS X and iOS operating systems, third-party digital content and applications through the iTunes Store, and a range of accessory, service and support offerings. The Company sells its products globally through its retail stores, online stores, and direct sales force and third-party cellular network carriers, wholesalers, retailers, and value-added resellers. As of September 25, 2010, the Company had opened a total of 317 retail stores, including 233 stores in the United States and 84 stores internationally.

Overview
Sector Industry Employees Last Reported Last Reported Quarter Technology Computer Hardware 46600

Key Data
Last Trade Price Range (52 week) Avg Volume (13 Week) Shares Outstanding Mkt Cap Enterprise Value Book Value per Share Dividend Yield $337.41 235.56 - 364.90 17,400,000 921,000,000 310.85B -Undefined --

Contents
1. 2. 3. 4. 5.6. 7. 8. Overview Technical Data Key Ratios Earnings & Analyst Financial Statements Company Insiders About Bedford

Highlights & Recent Developments


According to IDC Apple commands 8.5 percent of the PC market share. Apple reported record revenues of $24.67 billion and profits of nearly $6 billion. Mac sales were up 28 percent for the quarter ended March 26, to 3.76 million units, according to the company. Apple sold 4.69 million iPads during the quarter, which included the initial launch of the iPad 2. The outlook for Mac, iPad and iPhone 4 remains extremely strong, backed by demand in domestic and international markets, boding well for Apples revenues and earnings. For the third quarter of fiscal 2011, Apple expects revenues of approximately $23.0 billion. Earnings are projected at approximately $5.03 per share. Apples balance sheet remains strong. Cash and investments were $65.8 billion at the end of the quarter versus $59.7 billion in the previous quarter. The company generated cash flow of $6.2 billion during the quarter versus $9.8 billion in the previous quarter.

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Apple Inc. (NASDAQ: AAPL)


May 30, 2011

Technical Data
Price Information
52 Week Low 52 Week High 50 Day Moving Average 200 Day Moving Average Average Daily Volume (13Wk) $199.25 $364.90 $345.71 $308.54 17,400,000

Support / Resistance
Type
resist. resist. resist. resist. supp supp supp supp supp supp supp supp supp supp

Value
363.13 360.75 353.15 350.89 347.36 339.91 332.1 330.01 326.72 324.31 321.51 314.68 304.34 300.5

Confluence
2 4 2 2 7 13 2 2 2 4 4 2 2 2

Technical Signals Composite Indicator

Indicator
Trend Spotter 7 Day Average Directional Indicator 10 - 8 Day Moving Average Hilo Channel

Signal
Hold Buy Buy Buy Sell Hold Hold Buy Buy Buy Hold Buy Buy

Strength
Average Strong Average Average

Direction
Bearish Strongest Strongest Strongest Weakest Bullish Bullish

Short-Term Indicators

20 Day Moving Average vs Price 20 - 50 Day MACD Oscillator 20 Day Bollinger Bands 40 Day Commodity Channel Index 50 Day Moving Average vs Price 20 - 100 Day MACD Oscillator 50 Day Parabolic Time/Price 60 Day Commodity Channel Index

Medium-Term Indicators

Minimum Minimum Maximum Weak Weak

Strongest Weakest Strongest Bullish Strongest Weakest

Long-Term Indicators

100 Day Moving Average vs Price 50 - 100 Day MACD Oscillator

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Apple Inc. (NASDAQ: AAPL)


May 30, 2011

Key Statistics & Ratios


Valuation Ratios
Company
P/E Ratio (TTM) P/E High - Last 5 Yrs. P/E Low - Last 5 Yrs. Beta Price to Sales (TTM) Price to Book (MRQ) Price to Tangible Book (MRQ) Price to Cash Flow (TTM) Price to Free Cash Flow (TTM) % Owned Institutions 16.32 39.05 18.91 1.37 3.61 5.15 5.24 15.06 9.97 0.0%

Industry
11.65 38.88 10.93 1.22 0.61 1.84 2.41 8.04 19.01 0.0%

S&P 500
17.93 94.17 12.35 1.29 2.26 3.03 5.51 9.35 59.74 0.0%

Growth Rates
Company
Sales (MRQ) vs Qtr. 1 Yr. Ago Sales (TTM) vs TTM 1 Yr. Ago Sales - 5 Yr. Growth Rate EPS (MRQ) vs Qtr. 1 Yr. Ago EPS (TTM) vs TTM 1 Yr. Ago EPS - 5 Yr. Growth Rate Capital Spending - 5 Yr. Growth Rate 82.7% 71.1% 36.2% 92.0% 78.0% 57.8% 52.2%

Industry
46.4% 45.6% 29.7% -18.3% 0.0% 15.2% 10.8%

S&P 500
8.1% 10.7% 7.5% 59.5% 0.0% 4.8% 3.6%

Financial Strength
Company
Quick Ratio (MRQ) Current Ratio (MRQ) LT Debt to Equity (MRQ) Total Debt to Equity (MRQ) Interest Coverage (TTM) 1.89 1.93 0.00 0.00 0.00

Management Effectiveness
Industry
1.02 1.36 16.31 196.76 0.86

S&P 500
0.65 0.98 105.39 149.59 17.64

Company
Return On Assets (TTM) Return On Assets - 5 Yr. Avg. Return On Investment (TTM) Return On Investment - 5 Yr Avg Return On Equity (TTM) Return On Equity - 5 Yr. Avg. 25.7% 20.0% 33.9% 28.5% 38.8% 31.9%

Industry
7.0% 7.6% 15.5% 15.2% 17.3% 16.6%

S&P 500
6.0% 5.7% 7.6% 7.5% 17.4% 14.9%

Profitability
Company
Gross Margin (TTM) Gross Margin - 5 Yr. Avg. EBITD Margin (TTM) EBITD - 5 Yr. Avg. Operating Margin (TTM) Operating Margin - 5 Yr. Avg. Pre-Tax Margin (TTM) Pre-Tax Margin - 5 Yr. Avg. Net Profit Margin (TTM) Net Profit Margin - 5 Yr. Avg. Effective Tax Rate (TTM) Effective Tax Rate - 5 Yr. Avg. 39.1% 36.9% 30.6% 25.3% 29.0% 23.9% 29.3% 25.0% 22.4% 17.9% 23.7% 28.6%

Industry
-14.9% 13.6% 0.0% 7.5% 3.4% 5.2% 3.6% 5.5% 2.7% 4.2% 15.0% 17.1%

S&P 500
32.4% 30.3% 0.0% 19.2% 0.0% 14.7% 15.5% 14.3% 11.4% 10.6% 21.0% 24.8%

Efficiency
Company
Revenue/Employee (TTM) Net Income/Employee (TTM) Receivable Turnover (TTM) Inventory Turnover (TTM) Asset Turnover (TTM) 1,876,631 419,571 20.14 67.97 1.15

Industry
10,233,556 295,433 7.02 12.57 1.79

S&P 500
717,254 87,798 8.87 7.55 0.55

Dividends
Company
Dividend Yield Dividend Yield - 5 Year Avg. Dividend 5 Year Growth Rate Payout Ratio (TTM) 0.0% 0.0% 0.0% 0.0%

Industry
2.9% 2.3% 9.2% 21.9%

S&P 500
1.7% 2.5% -4.1% 43.4%

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Apple Inc. (NASDAQ: AAPL)


May 30, 2011

Earnings & Analyst Data


EPS Estimates
# of Ests.
Quarter Ending Jun-11 Quarter Ending Sep-11 Year Ending Sep-11 Year Ending Sep-12 46 45 54 51

Dividend Payments
Mean Est.
$5.25 $6.06 $23.12 $26.89

High Est.
$6.08 $7.24 $25.11 $32.49

Low Est.
$4.15 $4.72 $20.45 $22.55

Dividend Amount
------

Ex-dividend Date Payable Date


-----------------------------------------------

EPS Historical Surprises


Estimates
Quarter Ending Mar-11 Quarter Ending Dec-10 Quarter Ending Sep-10 Quarter Ending Jun-10 Quarter Ending Mar-10 $5.38 $5.40 $4.09 $3.12 $2.46

Actual
$6.40 $6.43 $4.64 $3.51 $3.33

Difference
$1.02 $1.03 $0.55 $0.39 $0.87

Surprise %
18.99% 19.12% 13.51% 12.39% 35.55%

----------

Analyst Recommendation Summary


Current
Strong Buy (1.0) Moderate Buy (2.0) Hold (3.0) Moderate Sell (4.0) Strong Sell (5.0) Mean Recommendation Current Consensus 37 4 3 0 0 1.2 Moderate Buy

1 Month Ago 2 Months Ago


38 5 4 0 0 1.3 38 5 3 0 0 1.2

3 Months Ago
54 6 3 0 0 1.2

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Analyst Upgrades & Downgrades


0-Jan-00 Date 16-Mar-11 5-Jan-11 4-Jan-11 4-Nov-10 5-Oct-10 4-Oct-10 18-May-10 0 Research Firm JMP Securities Wedbush Brigantine Robert W. Baird Jefferies Ticonderoga Sterne Agee 0 Action Downgrade Initiated Initiated Initiated Initiated Initiated Initiated 0 From Mkt Outperform ------0 To Mkt Perform Outperform Buy Outperform Buy Buy Buy

Price Target Summary


Mean Target: Median Target: High Target: Low Target: No. of Brokers: $425.67 $440.00 $550.00 $200.00 46

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Apple Inc. (NASDAQ: AAPL)


May 30, 2011

Financial Statements
Balance Sheet
Period Ending
Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Total Liabilities

Figures in Millions of US Dollars (exept per share values)

Annual
25-Sep-10
11,261 14,359 11,560 1,051 3,447 41,678 25,391 4,768 741 342 -2,263 -75,183

Quarterly
26-Sep-09
5,263 18,201 6,192 455 1,444 31,555 10,528 2,954 206 247 -2,011 1,727 47,501

27-Sep-08
11,875 12,615 6,151 509 3,540 34,690 -2,455 207 352 -641 1,227 39,572 10,734 16,243 12,598 885 3,467 43,927 32,730 5,868 741 522 -2,954 -86,742 11,261 14,359 11,560 1,051 3,447 41,678 25,391 4,768 741 342 -2,263 -75,183 9,705 14,583 7,615 942 3,188 36,033 21,551 3,990 714 318 -2,119 -64,725 10,018 13,137 4,028 638 4,515 32,336 18,549 3,504 480 263 -1,925 -57,057

17,738 -2,984 20,722 -5,531 1,139 27,392

9,453 -2,053 11,506 -3,502 853 15,861

8,558 -5,534 14,092 -746 3,704 18,542

20,254 -3,541 23,795 -7,065 1,216 32,076

17,738 -2,984 20,722 -5,531 1,139 27,392

12,921 -2,691 15,612 -4,981 1,021 21,614

9,687 -2,542 12,229 -4,539 941 17,709

Stockholders Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Net Tangible Assets (Book Value) ---10,668 37,169 --(46) 47,791 46,708 ---8,210 23,353 --77 31,640 31,187 ---7,177 13,845 --8 21,030 20,471 ---11,502 43,050 --114 54,666 53,403 ---10,668 37,169 --(46) 47,791 46,708 ---10,133 32,870 --108 43,111 42,079 ---9,553 29,670 --125 39,348 38,605

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Apple Inc. (NASDAQ: AAPL)


May 30, 2011 Income Statement
Period Ending
Total Revenue Cost of Revenue Gross Income Research and Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss Total Other Income(Expenses) Net Earnings Before Interest And Taxes Interest Expense Income Tax Expense Net Income From Continuing Ops Other Items not from Continuing Operations Net Income attributable to the Company Preferred Stock And Other Adjustments Net Income Applicable To Common Shares

Annual
25-Sep-10
65,225 39,541 25,684 1,782 5,517 --7,299 18,385 155 18,540 -4,527 14,013 -14,013 -14,013

Quarterly
26-Sep-09
42,905 25,683 17,222 1,333 4,149 --5,482 11,740 326 12,066 -3,831 8,235 -8,235 -8,235

27-Sep-08
32,479 21,334 11,145 1,109 3,761 --4,870 6,275 620 6,895 -2,061 4,834 -4,834 -4,834

25-Dec-10
26,741 16,443 10,298 575 1,896 --2,471 7,827 136 7,963 -1,959 6,004 -6,004 -6,004

25-Sep-10
20,343 12,831 7,512 494 1,571 --2,065 5,447 14 5,461 -1,153 4,308 -4,308 -4,308

26-Jun-10
15,700 9,564 6,136 464 1,438 --1,902 4,234 58 4,292 -1,039 3,253 -3,253 -3,253

27-Mar-10
13,499 7,874 5,625 426 1,220 --1,646 3,979 50 4,029 -955 3,074 -3,074 -3,074

Cash Flow Statement


Period Ending
Net Income Operating Activities Depreciation Adjustments To Net Income Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities Total Cash Flow From Operating Activities Investing Activities Capital Expenditures Investments Other Cash flows from Investing Activities Total Cash Flows From Investing Activities Financing Activities Dividends Paid Sale Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Other Liabilities

Annual
25-Sep-10
14,013 1,027 2,343 (4,860) 8,302 (596) (1,634) 18,595

Quarterly
26-Sep-09
8,235 734 1,776 (353) 452 54 (739) 10,159

27-Sep-08
4,834 473 170 (785) 7,517 (163) (2,450) 9,596

25-Dec-10
6,004 356 1,122 (950) 3,633 166 (558) 9,773

25-Sep-10
4,308 329 376 (3,525) 4,923 (109) (619) 5,683

26-Jun-10
3,253 273 629 (1,817) 3,107 (304) (340) 4,801

27-Mar-10
3,074 216 708 306 (1,606) (62) (306) 2,330

(2,005) (11,093) (756) (13,854)

(1,144) (16,147) (143) (17,434)

(1,091) (6,760) (338) (8,189)

(1,214) (9,443) (72) (10,729)

(760) (3,571) (52) (4,383)

(595) (4,469) (366) (5,430)

(274) 454 (263) (83)

-912 -(406) 1,257 -5,531

-475 -(82) 663 -3,502

-483 -633 1,116 -746

-208 -(233) 429 -7,065

-179 -(22) 256 -5,531

-199 -(122) 316 -4,981

-160 -(159) 162 -4,539

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Apple Inc. (NASDAQ: AAPL)


May 30, 2011

Company Insiders
Company Officers
Name
Jobs, Steven Oppenheimer, Peter Cook, Timothy Sewell, D. Bruce Schiller, Philip Johnson, Ronald Forstall, Scott Mansfield, Robert Williams, Jeffrey Federighi, Craig Levinson, Arthur Jung, Andrea Campbell, William Drexler, Millard Gore, Albert

Age Since
56 48 50 52 50 52 42 50 47 34 61 52 70 66 62 1997 1999 2003 2005 2009 1997 2000 2008 2008 2010 2011 2009

Current Position
Chief Executive Officer, Director Chief Financial Officer, Senior Vice President Chief Operating Officer Senior Vice President, General Counsel, Secretary Senior Vice President - Worldwide Product Marketing Senior Vice President - Retail Senior Vice President - iPhone Software Engineering and Platform Experience Senior Vice President - Hardware Engineering Senior Vice President - Operations Senior Vice President - Software Engineering Independent Co-Lead Director Independent Co-Lead Director Independent Director Independent Director Independent Director

Basic Compensation
$1 $29,796,700 $59,092,600 $29,739,600 $11,677,200 $29,795,400 $13,804,800 $13,996,600 --------

Options
5,865,000 2,290,000 1,550,000 -162,500 2,650,000 107,063 40,000 --------

Options Value
$23,192,400 $103,406,560 $21,401,080 -$9,454,730 $145,829,500 $13,242,400 $4,892,090 --------

Insider Transactions
Trading Date
31 Mar 2011 31 Mar 2011 31 Mar 2011 31 Mar 2011 10 Mar 2011 10 Mar 2011 10 Mar 2011 9 Mar 2011 9 Mar 2011 1 Mar 2011 1 Mar 2011 28 Feb 2011 28 Feb 2011 28 Feb 2011 28 Feb 2011 28 Feb 2011 28 Feb 2011 28 Feb 2011 28 Feb 2011 7 Feb 2011

Name
WILLIAMS JEFFREY E WILLIAMS JEFFREY E WILLIAMS JEFFREY E WILLIAMS JEFFREY E COOK TIMOTHY D COOK TIMOTHY D COOK TIMOTHY D COOK TIMOTHY D COOK TIMOTHY D WILLIAMS JEFFREY E WILLIAMS JEFFREY E WILLIAMS JEFFREY E WILLIAMS JEFFREY E WILLIAMS JEFFREY E WILLIAMS JEFFREY E WILLIAMS JEFFREY E WILLIAMS JEFFREY E WILLIAMS JEFFREY E WILLIAMS JEFFREY E SERLET BERTRAND

Title
Officer Officer Officer Officer Chief Operating Officer Chief Operating Officer Chief Operating Officer Chief Operating Officer Chief Operating Officer Officer Officer Officer Officer Officer Officer Officer Officer Officer Officer Officer

Type
Sell Buy Sell Sell Sell Sell Sell Buy Sell Sell Buy Sell Buy Sell Sell Sell Sell Sell Sell Sell

Shares Traded
600 2500 600 1300 9500 383 9600 37500 17217 596 500 900 2000 1500 3300 4000 7894 5736 6170 10000

Price
$348.30 $46.57 $351.09 $349.18 $346.68 $348.75 $345.62 $0.00 $346.67 $350.00 $46.57 $354.90 $46.57 $351.32 $348.39 $353.31 $350.19 $352.31 $349.51 $355.37

www.bedfordreport.com

Apple Inc. (NASDAQ: AAPL)


May 30, 2011

About Bedford
The Bedford Report provides research reports focused on equities with long term growth opportunities, value and strong potential return for investors. We strive to give a solid and clear understanding of all the information available presenting an multisided analysis of the companies and industries we profile. Continually evolving to keep pace with the changing financial markets of today, we look to new sources of information, un or under-tapped knowledge from on and off the street, and hand pick reports from a collection of analysts. We aim to feature companies that we believe show strong attributes and present good business opportunities for the long term value driven investor.

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