Company Note

September 24, 2009

Gene Munster, Sr Research Analyst
612 303-6452, gene.a.munster@pjc.com
Apple, Inc. (AAPL - $185.50)
Piper Jaffray & Co. Overweight
Michael J. Olson, Sr Research Analyst
612 303-6419, michael.j.olson@pjc.com Thoughts On New Accounting Treatment For
Piper Jaffray & Co. iPhone & Apple TV
Andrew H. Murphy, Research Analyst
612 303-6179, andrew.h.murphy@pjc.com KEY POINTS:
Piper Jaffray & Co. • Yesterday FASB approved changes to accounting rules which impact Apple's
recognition of iPhone and Apple TV revenues.
Reason for Report:
• While this has been expected for the last month, we believe this will be a positive
Change in Price Target for shares of AAPL.
Changes Previous Current • Timing: We believe changes will be implemented in Dec-09.
Rating -- Overweight • Impact: GAAP within 5% of current Non-GAAP numbers (see below)
Alpha List On On • Raising Price Target to $235 from $186.
Price Tgt $186.00 $235.00
FY09E Rev (mil) -- $35,616.9 Timing of Change: While the timing of the change is unknown (by rule Apple
FY10E Rev (mil) -- $40,146.9 must implement the changes by the Dec-10 quarter), we expect these changes will
FY09E EPS -- $5.71 be implemented within the next two quarters (by December of 2009). We expect
FY10E EPS -- $6.00 more details on the September 2009 conference call.
Price: $185.50 Impact: We believe this will change our GAAP numbers for FY09 from $5.71 to
52 Week High: $188.90 about $8.21, and for FY10 from $6.00 to about $8.90. We are not changing our
52 Week Low: $78.20 numbers at this time given the details are unknown. These numbers provide a
12-Month Price Target: $235.00 framework to think about the direction and magnitude of the change and assume the
(~25x FY10E non-GAAP EPS of $9.30) rule change is applied retroactively for the year.
Shares Out (mil): 909.2 Details: Impact of Accounting Changes. While we are not changing numbers, the
Market Cap. (mil): $168,656.6 following sensitivity is to help put a framework around the direction and magnitude
Avg Daily Vol (000): 16,564 of the recent accounting changes. Under the previous rules, there was about a 35%
Book Value/Share: $28.47 difference between the GAAP and non-GAAP numbers. Under the new rules, we
Cash Per Share: $26.64 expect there to be less than a 5% difference between the GAAP and non-GAAP
Debt to Total Capital: 0% numbers. For example, under the previous rules, our FY09 GAAP EPS estimate is
Alpha List: On $5.71, vs. non-GAAP of $8.65; under the new rules, we believe our GAAP estimate
Est LT EPS Growth: 20% will be closer to $8.21 for FY09 once the ruling is implemented. For FY10, our
P/E to LT EPS Growth (FY09): 1.6x GAAP EPS estimate of $6.00, vs. non-GAAP of $9.30; under the new rules, we
Est Next Rep Date: 10/20/2009 believe our GAAP estimate will be closer to $8.90.
Fiscal Year End: Sep Rationale Behind The Rule Change. Before yesterday's ruling, any product that
offered free upgrades to software and services installed on a device like an iPhone
Rev (mil) 2008A 2009E 2010E required subscription accounting (revenue deferred over 8 quarters in the case of
Dec $9,608.0A$10,167.0A$10,757.4E the iPhone and Apple TV). However, the vast majority of the value of the device
Mar $7,512.0A $8,163.0A $9,273.6E was realized at the time of purchase. While the value at the time of purchase as a
Jun $7,464.0A $8,337.0A $9,863.1E percentage of the purchase price is debatable, we believe about 90% of the value of
Sep $7,895.0A $8,950.0E$10,252.8E an iPhone is realized at the time of purchase. Under the previous rules, Apple was
FY $32,479.0A$35,616.9E$40,146.9E only allowed to recognize 12.5% (1/8th) of the revenue from each sale; under the
CY $33,038.0A$36,207.4E NA new rules, the percentage will be decided on a case-by-case basis for each given
product.
FY RM 5.2x 4.7x 4.2x
CY RM 5.1x 4.7x NM
EPS 2008A 2009E 2010E INVESTMENT RECOMMENDATION:
Dec $1.76A $1.78A $1.65E We are maintaining our Overweight rating. We are raising our price target to $235
Mar $1.16A $1.33A $1.37E based on ~25x FY10 Non-GAAP EPS, up from 20x. We believe 25x is justified
Jun $1.19A $1.35A $1.48E given shares of AAPL have traded at 30x next 12 month EPS for the past 5 years.
Sep $1.26A $1.24E $1.50E RISKS TO ACHIEVEMENT OF TARGET PRICE:
FY $5.36A $5.71E $6.00E Risks include: trends in end-markets; changes in component pricing; competitive
CY $5.38A $5.57E NA pressures on product pricing.
FY P/E 34.6x 32.5x 30.9x COMPANY DESCRIPTION:
CY P/E 34.5x 33.3x NM Apple, Inc. provides hardware, software, and peripheral solutions focused on the
education, creative professional, and consumer markets.

Piper Jaffray does and seeks to do business with companies covered in its research reports. As a result, investors should be
aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider
this report as only a single factor in making their investment decisions. This report should be read in conjunction with
important disclosure information, including an attestation under Regulation Analyst certification, found on pages 12 - 14 of
this report or at the following site: http://www.piperjaffray.com/researchdisclosures.

Apple, Inc. Page 1 of 14

Apple, Inc. Updated: 7/21/09 Gene Munster - gene.a.munster@pjc.com
Income Sheet ($ in Millions) Michael Olson - michael.j.olson@pjc.com
Fiscal Year End Sep 30 Andrew Murphy - andrew.h.murphy@pjc.com
For disclosures on this company, please see www.piperjaffray.com/researchdisclosures.
Qtrs & Net Cost of Gross % of % of Oper Oper Int & Pretax Tax Income Net Diluted GAAP Growth Y/Y
Years Sales Sales GM Profit R&D Sales SG&A Sales Op Ex Inc Margin Other Inc Rate Taxes Inc Shares EPS Rev EPS

Dec-05 5,749.0 4,185.0 27.2% 1,564.0 182.0 3% 632.0 11% 814.0 750.0 13% 81.0 831.0 32% 266.0 565.0 874.2 0.65 65% 84%
Mar-06 4,359.0 3,062.0 29.8% 1,297.0 176.0 4% 592.0 14% 768.0 529.0 12% 76.0 605.0 32% 195.0 410.0 878.5 0.47 34% 38%
Jun-06 4,370.0 3,045.0 30.3% 1,325.0 175.0 4% 584.0 13% 759.0 566.0 13% 95.0 661.0 29% 189.0 472.0 876.4 0.54 24% 45%
Sep-06 4,837.0 3,425.0 29.2% 1,412.0 179.0 4% 624.0 13% 803.0 609.0 13% 113.0 722.0 24% 176.0 546.0 878.8 0.62 32% 66%
Dec-06 7,115.0 4,895.0 31.2% 2,220.0 184.0 3% 714.0 10% 898.0 1,322.0 19% 126.0 1,448.0 31% 444.0 1,004.0 883.3 1.14 24% 76%
Mar-07 5,264.0 3,415.0 35.1% 1,849.0 183.0 3% 680.0 13% 863.0 986.0 19% 148.0 1,134.0 32% 364.0 770.0 886.7 0.87 21% 86%
Jun-07 5,410.0 3,415.0 36.9% 1,995.0 208.0 4% 746.0 14% 954.0 1,041.0 19% 155.0 1,196.0 32% 378.0 818.0 890.7 0.92 24% 71%
Sep-07 6,216.9 4,127.0 33.6% 2,089.9 207.0 3% 823.0 13% 1,030.0 1,059.9 17% 170.0 1,229.9 27% 326.0 903.9 895.7 1.01 29% 62%
Dec-07 9,608.0 6,276.0 34.7% 3,332.0 246.0 3% 960.0 10% 1,206.0 2,126.0 22% 200.0 2,326.0 32% 745.0 1,581.0 900.1 1.76 35% 55%
Mar-08 7,512.0 5,038.0 32.9% 2,474.0 273.0 4% 886.0 12% 1,159.0 1,315.0 18% 162.0 1,477.0 29% 432.0 1,045.0 899.3 1.16 43% 34%
Jun-08 7,464.0 4,864.0 34.8% 2,600.0 292.0 4% 916.0 12% 1,208.0 1,392.0 19% 118.0 1,510.0 29% 438.0 1,072.0 903.2 1.19 38% 29%
Sep-08 7,895.0 5,156.0 34.7% 2,739.0 298.0 4% 999.0 13% 1,297.0 1,442.0 18% 140.0 1,582.0 28% 446.0 1,136.0 904.8 1.26 27% 24%
Dec-08 10,167.0 6,635.0 34.7% 3,532.0 315.0 3% 1,091.0 11% 1,406.0 2,126.0 21% 158.0 2,284.0 30% 679.0 1,605.0 901.5 1.78 6% 1%
Mar-09 8,163.0 5,192.0 36.4% 2,971.0 319.0 4% 985.0 12% 1,304.0 1,667.0 20% 63.0 1,730.0 30% 525.0 1,205.0 903.0 1.33 9% 15%
Jun-09 8,337.0 5,314.0 36.3% 3,023.0 341.0 4% 1,010.0 12% 1,351.0 1,672.0 20% 60.0 1,732.0 29% 503.0 1,229.0 909.2 1.35 12% 14%
Sep-09 8,950.0 5,862.3 34.5% 3,087.8 393.8 4% 1,109.8 12% 1,503.6 1,584.2 18% 30.0 1,614.2 30% 484.2 1,129.9 911.2 1.24 Est 13% -1%
Dec-09 10,757.4 7,099.9 34.0% 3,657.5 398.0 4% 1,151.0 11% 1,549.1 2,108.5 20% 40.0 2,148.5 30% 644.5 1,503.9 913.2 1.65 Est 6% -7%
Mar-10 9,273.6 6,166.9 33.5% 3,106.7 352.4 4% 1,010.8 11% 1,363.2 1,743.4 19% 45.0 1,788.4 30% 536.5 1,251.9 915.2 1.37 Est 14% 3%
Jun-10 9,863.1 6,539.2 33.7% 3,323.9 364.9 4% 1,065.2 11% 1,430.1 1,893.7 19% 50.0 1,943.7 30% 583.1 1,360.6 917.2 1.48 Est 18% 10%
Sep-10 10,252.8 6,848.9 33.2% 3,403.9 399.9 4% 1,086.8 11% 1,486.7 1,917.3 19% 50.0 1,967.3 30% 590.2 1,377.1 919.2 1.50 Est 15% 21%

FY 06 19,315.0 13,717.0 29.0% 5,598.0 712.0 4% 2,432.0 13% 3,144.0 2,454.0 13% 365.0 2,819.0 29% 826.0 1,993.0 877.0 2.27
FY 07 24,005.9 15,852.0 34.0% 8,153.9 782.0 3% 2,963.0 12% 3,745.0 4,408.9 18% 599.0 5,007.9 30% 1,512.0 3,495.9 889.1 3.93 24% 73%
FY 08 32,479.0 21,334.0 34.3% 11,145.0 1,109.0 3% 3,761.0 12% 4,870.0 6,275.0 19% 620.0 6,895.0 30% 2,061.0 4,834.0 901.8 5.36 35% 36%
FY 09 35,616.9 23,003.3 35.4% 12,613.7 1,368.8 4% 4,195.8 12% 5,564.6 7,049.1 20% 311.0 7,360.1 30% 2,191.2 5,168.8 906.2 5.71 Est 10% 6%
FY 10 40,146.9 26,655.0 33.6% 13,492.0 1,515.2 4% 4,313.9 11% 5,829.1 7,662.9 19% 185.0 7,847.9 30% 2,354.4 5,493.5 916.2 6.00 Est 13% 5%

CY06 20,681.0 14,427.0 30.2% 6,254.0 714.0 3% 2,514.0 12% 3,228.0 3,026.0 15% 410.0 3,436.0 29% 1,004.0 2,432.0 879.2 2.76
CY07 26,498.9 17,233.0 35.0% 9,265.9 844.0 3% 3,209.0 12% 4,053.0 5,212.9 20% 673.0 5,885.9 31% 1,813.0 4,072.9 893.3 4.55 28% 65%
CY08 33,038.0 21,693.0 34.3% 11,345.0 1,178.0 4% 3,892.0 12% 5,070.0 6,275.0 19% 578.0 6,853.0 29% 1,995.0 4,858.0 902.2 5.38 25% 18%
CY09 36,207.4 23,468.2 35.2% 12,739.2 1,451.8 4% 4,255.8 12% 5,707.7 7,031.5 19% 193.0 7,224.5 30% 2,156.8 5,067.7 909.1 5.57 Est 10% 3%

7832_109532_57_1.xls

Apple, Inc. Page 2 of 14

Apple, Inc.
Balance Sheet ($ in Millions)
Fiscal Year End Sep 30
Assets Liabilities Balance Sheet Ratios
Qtrs & Cash ST AR, Def Tax Other Total Acquired Other Total Accts Accrued Def Total Def Tax Total Total Total Accts Pay Book Val / Cash / LTD/
Years & Eq. Invest. Net Invent. Asts Cu. Asts. Cu. Asts. PP&E GW Intglbes Assts Assets Payable Exp Rev Cur. Lia. & Other Liab SE L&SE DSOs To Sales Share Share Cap
Dec-05 4,150.0 4,557.0 1,331.0 244.0 471.0 1,409.0 12,162.0 855.0 69.0 24.0 1,071.0 14,181.0 2,896.0 2,164.0 -- 5,060.0 741.0 5,801.0 8,380.0 14,181.0 20 0.5 $9.59 $9.96 8.12
Mar-06 6,346.0 1,880.0 861.0 204.0 459.0 1,536.0 11,286.0 1,005.0 69.0 41.0 1,510.0 13,911.0 2,108.0 2,348.0 -- 4,456.0 773.0 5,229.0 8,682.0 13,911.0 17 0.5 $9.88 $9.36 8.18
Jun-06 8,013.0 1,163.0 1,089.0 213.0 491.0 1,522.0 12,491.0 1,197.0 38.0 37.0 1,386.0 15,149.0 2,513.0 2,507.0 -- 5,020.0 761.0 5,781.0 9,368.0 15,149.0 21 0.6 $10.69 $10.47 7.51
Sep-06 6,392.0 3,718.0 1,252.0 270.0 0.0 2,877.0 14,509.0 1,281.0 0.0 0.0 1,454.0 17,244.0 3,390.0 3,066.0 -- 6,456.0 750.0 7,206.0 10,038.0 17,244.0 22 0.7 $11.42 $11.50 6.95
Dec-06 7,159.0 4,710.0 1,621.0 303.0 648.0 2,223.0 16,664.0 1,362.0 38.0 146.0 1,251.0 19,461.0 3,885.0 3,452.0 -- 7,337.0 896.0 8,233.0 11,228.0 19,461.0 20 0.5 $12.71 $13.44 7.39
Mar-07 7,095.0 5,482.0 928.0 208.0 640.0 1,676.0 16,029.0 1,409.0 38.0 240.0 995.0 18,711.0 2,403.0 3,082.0 -- 5,485.0 965.0 6,450.0 12,261.0 18,711.0 15 0.5 $13.83 $14.18 7.30
Jun-07 7,118.0 6,649.0 1,410.0 251.0 687.0 2,630.0 18,745.0 1,626.0 38.0 237.0 1,001.0 21,647.0 3,660.0 3,332.0 -- 6,992.0 1,251.0 8,243.0 13,404.0 21,647.0 22 0.7 $15.05 $15.46 8.54
Sep-07 9,352.0 6,034.0 1,637.0 346.0 782.0 3,805.0 21,956.0 1,832.0 38.0 299.0 1,222.0 25,347.0 4,970.0 4,329.0 -- 9,299.0 1,516.0 10,815.0 14,532.0 25,347.0 23 0.8 $16.22 $17.18 9.45
Dec-07 9,162.0 9,286.0 1,939.0 459.0 993.0 4,350.0 26,189.0 1,870.0 38.0 311.0 1,631.0 30,039.0 5,366.0 5,169.0 -- 10,535.0 2,700.0 13,235.0 16,804.0 30,039.0 17 0.6 $18.67 $20.50 13.84
Mar-08 9,070.0 10,378.0 1,593.0 364.0 1,060.0 4,271.0 26,736.0 1,962.0 38.0 300.0 1,435.0 30,471.0 4,154.0 5,480.0 -- 9,634.0 2,784.0 12,418.0 18,053.0 30,471.0 18 0.6 $20.07 $21.63 13.36
Jun-08 9,373.0 11,401.0 1,603.0 545.0 1,131.0 3,945.0 27,998.0 2,177.0 38.0 291.0 1,205.0 31,709.0 3,683.0 5,535.0 -- 9,218.0 2,869.0 12,087.0 19,622.0 31,709.0 18 0.5 $21.73 $23.00 12.76
Sep-08 11,875.0 12,615.0 2,422.0 509.0 1,447.0 5,822.0 34,690.0 2,455.0 207.0 285.0 1,935.0 39,572.0 5,520.0 8,572.0 -- 14,092.0 4,450.0 18,542.0 21,030.0 39,572.0 27 0.7 $23.24 $27.07 17.46
Dec-08 7,236.0 18,411.0 2,196.0 396.0 1,613.0 5,311.0 35,163.0 2,580.0 207.0 277.0 4,560.0 42,787.0 4,715.0 3,807.0 6,235.0 14,757.0 5,121.0 19,878.0 22,909.0 42,787.0 18 0.5 $25.41 $28.45 18.27
Mar-09 4,466.0 20,547.0 1,932.0 312.0 1,539.0 5,057.0 33,853.0 2,546.0 207.0 268.0 6,363.0 43,237.0 3,976.0 2,761.0 7,014.0 13,751.0 5,175.0 18,926.0 24,311.0 43,237.0 20 0.5 $26.92 $27.70 17.55
Jun-09 5,605.0 18,617.0 2,686.0 380.0 1,731.0 6,151.0 35,170.0 2,653.0 207.0 259.0 9,851.0 48,140.0 4,854.0 3,338.0 8,469.0 16,661.0 5,591.0 22,252.0 25,888.0 48,140.0 28 0.6 $28.47 $26.64 17.76
Sep-09 5,964.7 21,217.0 2,745.9 419.2 1,731.0 6,458.6 38,536.4 2,899.0 207.0 259.0 9,851.0 51,752.4 5,210.9 3,338.0 8,892.5 17,441.4 5,591.0 23,032.4 28,720.0 51,752.4 28 0.6 $31.52 $29.83 16.30 Est
Dec-09 7,459.6 23,517.0 3,300.5 507.7 1,731.0 6,458.6 42,974.3 3,145.0 207.0 259.0 9,851.0 56,436.3 6,263.3 3,338.0 9,337.1 18,938.3 5,591.0 24,529.3 31,907.0 56,436.3 28 0.6 $34.94 $33.92 14.91 Est
Mar-10 7,252.9 25,817.0 2,845.2 441.0 1,731.0 6,458.6 44,545.7 3,391.0 207.0 259.0 9,851.0 58,253.7 5,399.3 3,338.0 9,803.9 18,541.3 5,591.0 24,132.3 34,121.4 58,253.7 28 0.6 $37.28 $36.14 14.08 Est
Jun-10 7,761.4 28,117.0 3,026.1 467.6 1,731.0 6,458.6 47,561.7 3,637.0 207.0 259.0 9,851.0 61,515.7 5,742.6 3,338.0 10,294.1 19,374.7 5,591.0 24,965.7 36,550.0 61,515.7 28 0.6 $39.85 $39.12 13.27 Est
Sep-10 8,721.0 30,417.0 3,145.6 489.8 1,731.0 6,458.6 50,963.0 3,883.0 207.0 259.0 9,851.0 65,163.0 5,969.5 3,338.0 10,808.8 20,116.3 5,591.0 25,707.3 39,455.7 65,163.0 28 0.6 $42.93 $42.58 12.41 Est

FY 06 6,392.0 3,718.0 1,252.0 270.0 0.0 2,877.0 14,509.0 1,281.0 0.0 0.0 1,454.0 17,244.0 3,390.0 3,066.0 -- 6,456.0 750.0 7,206.0 10,038.0 17,244.0 22 0.7 $11.42 $11.50 6.95
FY 07 9,352.0 6,034.0 1,637.0 346.0 782.0 3,805.0 21,956.0 1,832.0 38.0 299.0 1,222.0 25,347.0 4,970.0 4,329.0 -- 9,299.0 1,516.0 10,815.0 14,532.0 25,347.0 23 0.8 $16.22 $17.18 9.45
FY 08 11,875.0 12,615.0 2,422.0 509.0 1,447.0 5,822.0 34,690.0 2,455.0 207.0 285.0 1,935.0 39,572.0 5,520.0 8,572.0 -- 14,092.0 4,450.0 18,542.0 21,030.0 39,572.0 27 0.7 $23.24 $27.07 17.46
FY 09 5,964.7 21,217.0 2,745.9 419.2 1,731.0 6,458.6 38,536.4 2,899.0 207.0 259.0 9,851.0 51,752.4 5,210.9 3,338.0 8,892.5 17,441.4 5,591.0 23,032.4 # 28,720.0 51,752.4 28 0.6 $31.52 $29.83 16.30 Est
FY 10 8,721.0 30,417.0 3,145.6 489.8 1,731.0 6,458.6 50,963.0 3,883.0 207.0 259.0 9,851.0 65,163.0 5,969.5 3,338.0 10,808.8 20,116.3 5,591.0 25,707.3 # 39,455.7 65,163.0 28 0.6 $42.93 $42.58 12.41 Est

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Apple, Inc. Page 3 of 14

 Apple, Inc.
Cash Flow Statement ($ in Millions)
Fiscal Year End Sep 30

Operating Activities Investing Activities Financing Activities

Qtrs & Net Inc/ Depr. & Def Inc Gain on Changes in Working Capital Cash Frm Purch of Maturites Sale Of Purch of Cash Frm Proceeds Repurchase Cash Frm Increase Begin. End
Years Loss Amort. Taxes Inv Sale Other AR Invent. Other CA Other A AP Other Ops ST Inv of ST Inv ST Inv LT Inv PPE Other Invest from CS of Stock Other Finan In Cash Cash Cash
Dec-05 565.0 52.0 44.0 0.0 70.0 (436.0) (79.0) (757.0) (771.0) 1,117.0 478.0 283.0 (3,185.0) 3,396.0 0.0 0.0 (82.0) (36.0) 93.0 134.0 0.0 149.0 283.0 659.0 3,491.0 4,150.0
Mar-06 410.0 50.0 39.0 0.0 16.0 470.0 40.0 (135.0) (424.0) (788.0) 194.0 (125.0) (607.0) 3,287.0 0.0 0.0 (193.0) (25.0) 2,462.0 78.0 (353.0) 283.0 8.0 2,345.0 4,150.0 6,495.0
Jun-06 472.0 57.0 118.0 0.0 38.0 (228.0) (9.0) 12.0 82.0 405.0 60.0 1,007.0 (601.0) 1,144.0 175.0 (12.0) (237.0) 62.0 531.0 74.0 (1.0) (93.0) (20.0) 1,518.0 6,495.0 8,013.0
Sep-06 542.0 66.0 (148.0) 0.0 35.0 (163.0) (57.0) (746.0) 73.0 877.0 564.0 1,055.0 (2,862.0) (601.0) 911.0 (13.0) (145.0) (19.0) (2,729.0) 32.0 (1.0) 22.0 53.0 (1,621.0) 8,013.0 6,392.0
Dec-06 1,004.0 74.0 46.0 0.0 78.0 (369.0) (33.0) 36.0 28.0 495.0 454.0 1,813.0 (2,581.0) 934.0 655.0 0.0 (142.0) (100.0) (1,234.0) 101.0 0.0 87.0 188.0 767.0 6,392.0 7,158.9
Mar-07 770.0 69.0 76.0 0.0 31.0 693.0 95.0 553.0 233.0 (1,482.0) (310.0) 734.0 (3,642.0) 2,027.0 850.0 0.0 (105.0) (108.0) (978.0) 75.0 0.0 105.0 180.0 (64.0) 7,158.9 7,095.0
Jun-07 818.0 81.0 84.0 0.0 72.0 (482.0) (43.0) (952.0) (7.0) 1,257.0 399.0 1,227.0 (3,364.0) 1,285.0 915.0 0.0 (283.0) 14.0 (1,433.0) 118.0 0.0 111.0 229.0 23.0 7,095.0 7,118.0
Sep-07 904.0 93.0 (128.0) 0.0 61.0 (227.0) (95.0) (1,177.0) (173.0) 1,224.0 1,208.0 1,696.0 (2,132.0) 2,237.0 521.0 (17.0) (205.0) (8.0) 396.0 71.0 (3.0) 74.0 142.0 2,234.0 7,118.0 9,352.0
Dec-07 1,581.0 106.0 22.0 0.0 124.0 (302.0) (113.0) (550.0) (253.0) 484.0 1,688.0 2,787.0 (6,127.0) 2,129.0 758.0 (9.0) (224.0) 11.0 (3,462.0) 179.0 0.0 306.0 485.0 (190.0) 9,352.0 9,162.0
Mar-08 1,045.0 116.0 (16.0) 0.0 128.0 346.0 95.0 106.0 103.0 (1,224.0) 494.0 1,193.0 (6,613.0) 4,554.0 918.0 (8.0) (160.0) (53.0) (1,362.0) 54.0 0.0 23.0 77.0 (92.0) 9,162.0 9,070.0
Jun-08 1,072.0 117.0 35.0 0.0 138.0 (10.0) (181.0) 344.0 251.0 (486.0) 41.0 1,321.0 (4,413.0) 2,695.0 691.0 (14.0) (304.0) (27.0) (1,372.0) 178.0 0.0 176.0 354.0 303.0 9,070.0 9,373.0
Sep-08 1,136.0 134.0 (409.0) 0.0 148.0 (819.0) 36.0 (1,858.0) (593.0) 1,822.0 4,698.0 4,295.0 (5,812.0) 2,426.0 2,072.0 (7.0) (403.0) (269.0) (1,993.0) 72.0 0.0 128.0 200.0 2,502.0 9,373.0 11,875.0
Dec-08 1,605.0 158.0 (27.0) 0.0 177.0 226.0 113.0 660.0 (116.0) (767.0) 1,909.0 3,938.0 (13,082.0) 2,226.0 2,668.0 (38.0) (339.0) (74.0) (8,639.0) 77.0 0.0 (15.0) 62.0 (4,639.0) 11,875.0 7,236.0
Mar-09 1,205.0 172.0 (4.0) 0.0 182.0 264.0 84.0 199.0 (340.0) (760.0) (161.0) 841.0 (10,401.0) 4,054.0 2,789.0 (16.0) (100.0) (11.0) (3,685.0) 45.0 0.0 29.0 74.0 (2,770.0) 7,236.0 4,466.0
Jun-09 1,229.0 176.0 (170.0) 0.0 189.0 (754.0) (68.0) (1,157.0) (360.0) 879.0 2,306.0 2,270.0 (11,213.0) 6,500.0 3,660.0 (7.0) (246.0) (33.0) (1,339.0) 166.0 0.0 42.0 208.0 1,139.0 4,466.0 5,605.0
Sep-09 1,929.4 176.0 0.0 0.0 0.0 (59.9) (39.2) (307.6) 0.0 356.9 1,100.0 3,155.7 (8,000.0) 3,200.0 2,200.0 0.0 (246.0) 0.0 (2,846.0) 50.0 0.0 0.0 50.0 359.7 5,605.0 5,964.7 Est
Dec-09 2,605.6 176.0 0.0 0.0 0.0 (554.5) (88.5) (200.0) 0.0 1,052.3 1,200.0 4,190.9 (8,000.0) 3,200.0 2,500.0 0.0 (246.0) (200.0) (2,746.0) 50.0 0.0 0.0 50.0 1,494.9 5,964.7 7,459.6 Est
Mar-10 1,655.3 176.0 0.0 0.0 0.0 455.3 66.7 (200.0) 0.0 (863.9) 1,200.0 2,489.3 (8,000.0) 3,200.0 2,500.0 0.0 (246.0) (200.0) (2,746.0) 50.0 0.0 0.0 50.0 (206.7) 7,459.6 7,252.9 Est
Jun-10 1,892.8 176.0 0.0 0.0 0.0 (180.9) (26.6) (200.0) 0.0 343.2 1,200.0 3,204.5 (8,000.0) 3,200.0 2,500.0 0.0 (246.0) (200.0) (2,746.0) 50.0 0.0 0.0 50.0 508.5 7,252.9 7,761.4 Est
Sep-10 2,394.4 176.0 0.0 0.0 0.0 (119.6) (22.1) (200.0) 0.0 226.9 1,200.0 3,655.6 (8,000.0) 3,200.0 2,500.0 0.0 (246.0) (200.0) (2,746.0) 50.0 0.0 0.0 50.0 959.6 7,761.4 8,721.0 Est

FY 06 1,989.0 225.0 53.0 0.0 159.0 (357.0) (105.0) (1,626.0) (1,040.0) 1,611.0 1,296.0 2,220.0 (7,255.0) 7,226.0 1,086.0 (25.0) (657.0) (18.0) 357.0 318.0 (355.0) 361.0 324.0 2,901.0 3,491.0 6,392.0
FY 07 3,496.0 317.0 78.0 0.0 242.0 (385.0) (76.0) (1,540.0) 81.0 1,494.0 1,751.0 5,470.0 (11,719.0) 6,483.0 2,941.0 (17.0) (735.0) (202.0) (3,249.0) 365.0 (3.0) 377.0 739.0 2,960.0 6,392.0 9,352.0
FY 08 4,834.0 473.0 (368.0) 0.0 538.0 (785.0) (163.0) (1,958.0) (492.0) 596.0 6,921.0 9,596.0 (22,965.0) 11,804.0 4,439.0 (38.0) (1,091.0) (338.0) (8,189.0) 483.0 0.0 633.0 1,116.0 2,523.0 9,352.0 11,875.0
FY 09 5,968.4 682.0 (201.0) 0.0 548.0 (323.9) 89.8 (605.6) (816.0) (291.1) 5,154.0 10,204.7 (42,696.0) 15,980.0 11,317.0 (61.0) (931.0) (118.0) (16,509.0) 338.0 0.0 56.0 394.0 (5,910.3) 11,875.0 5,964.7 Est
FY 10 8,548.1 704.0 0.0 0.0 0.0 (399.7) (70.6) (800.0) 0.0 758.5 4,800.0 13,540.4 (32,000.0) 12,800.0 10,000.0 0.0 (984.0) (800.0) (10,984.0) 200.0 0.0 0.0 200.0 2,756.4 5,964.7 8,721.0 Est

Apple, Inc. Page 4 of 14

Apple, Inc.
Product Sales Analysis ($ in Millions)
Fiscal Year End Sep 30

Mac Sales
Qtrs & Total Total YoY Total % of YoY Desktop Desktop % Desktop Desktop Portable Portable % Portable Portable
Years Mac Sales Mac Units Unit Gwth Mac ASPs Sales Rev Gwth Units Revenue Of Mac ASP Units Revenue Of Mac ASP

Dec-05 1,724.0 1,254.0 20% 1,374.8 30.0% 7% 667.0 912.0 53% 1367.3 587.0 812.0 47% 1383.3
Mar-06 1,572.0 1,112.0 4% 1,413.7 36.1% 5% 614.0 833.0 53% 1356.7 498.0 739.0 47% 1484.0
Jun-06 1,866.0 1,327.0 12% 1,406.2 42.7% 19% 529.0 705.0 38% 1332.7 798.0 1161.0 62% 1454.9
Sep-06 2,213.0 1,610.0 30% 1,374.5 45.8% 37% 624.0 869.0 39% 1392.7 986.0 1344.0 61% 1363.1
Dec-06 2,410.1 1,606.0 28% 1,500.7 33.9% 40% 637.0 955.0 40% 1499.3 969.0 1455.0 60% 1501.6
Mar-07 2,268.1 1,517.0 36% 1,495.1 43.1% 44% 626.0 914.0 40% 1460.1 891.0 1354.0 60% 1519.7
Jun-07 2,533.0 1,764.0 33% 1,435.9 46.8% 36% 634.0 956.0 38% 1507.9 1130.0 1577.0 62% 1395.6
Sep-07 3,103.0 2,164.0 34% 1,433.9 49.9% 40% 817.0 1195.0 39% 1462.7 1347.0 1908.0 61% 1416.5
Dec-07 3,552.0 2,319.0 44% 1,531.7 37.0% 47% 977.0 1515.0 43% 1550.7 1342.0 2037.0 57% 1517.9
Mar-08 3,494.0 2,289.0 51% 1,526.4 46.5% 54% 856.0 1352.0 39% 1579.5 1433.0 2142.0 61% 1494.8
Jun-08 3,610.0 2,496.0 41% 1,446.3 48.4% 43% 943.0 1373.0 38% 1456.0 1553.0 2237.0 62% 1440.4
Sep-08 3,620.0 2,611.0 21% 1,386.4 45.9% 17% 936.0 1363.0 38% 1456.2 1675.0 2257.0 62% 1347.5
Dec-08 3,554.0 2,524.0 9% 1,408.1 35.0% 0% 728.0 1043.0 29% 1432.7 1796.0 2511.0 71% 1398.1
Mar-09 2,945.0 2,216.0 -3% 1,329.0 36.1% -16% 818.0 1050.0 36% 1283.6 1398.0 1895.0 64% 1355.5
Jun-09 3,329.0 2,603.0 4% 1,278.9 39.9% -8% 849.0 1129.0 34% 1329.8 1754.0 2200.0 66% 1254.3
Sep-09 3,239.1 2,700.0 3% 1,199.7 36.2% -11% 862.7 1101.8 34% 1277.2 1837.3 2137.3 66% 1163.3
Dec-09 3,231.4 2,650.5 5% 1,219.2 30.0% -9% 825.1 1052.0 33% 1275.0 1825.4 2179.4 67% 1193.9
Mar-10 2,967.0 2,400.2 8% 1,236.1 32.0% 1% 820.3 1083.8 37% 1321.2 1579.9 1883.2 63% 1192.0
Jun-10 3,325.6 2,746.8 6% 1,210.7 33.7% 0% 889.4 1165.5 35% 1310.4 1857.4 2160.1 65% 1163.0
Sep-10 3,488.8 2,946.8 9% 1,183.9 34.0% 8% 913.0 1164.8 33% 1275.8 2033.8 2324.0 67% 1142.7

FY 06 7,375.0 5,303.0 17% 1,392.3 38.2% 18% 2434.0 3319.0 45% 1363.6 2869.0 4056.0 55% 1413.7
FY 07 10,314.1 7,051.0 33% 1,466.4 43.0% 40% 2714.0 4020.1 39% 1481.2 4337.0 6294.0 61% 1451.2
FY 08 14,276.0 9,715.0 38% 1,472.7 44.0% 38% 3712.0 5603.0 39% 1509.4 6003.0 8672.9 61% 1444.8
FY 09 13,067.1 10,043.0 3% 1,303.9 36.7% -8% 3257.7 4323.8 33% 1327.3 6785.3 8743.3 67% 1288.6
FY 10 13,012.9 10,744.3 7% 1,212.5 32.4% 0% 3447.9 4466.1 34% 1295.3 7296.5 8546.7 66% 1171.4

7832_109532_57_1.xls

Apple, Inc. Page 5 of 14

Apple, Inc.
Mac Sales Breakdown ($ in Millions)
Fiscal Year End Sep 30

Mac Sales
Qtrs & % of YoY MacBook % of YoY YoY Avg iMac % of YoY Total Macbook % of YoY
Years Mac Pro Units ASPs Sales Growth Pro Units ASPs Sales Growth iMac Units iMac ASP Mac mini ASP Unit Growth ASPs Sales Growth MacBook Units Macbook Air ASPs Sales Growth

Dec-05 301.7 133.5 2,260.0 5.2% -21% 443.0 227.0 1,951.5 7.7% 44% 610.3 533.5 413.5 1,325.0 120.0 520.0 17% 1,143.9 10.6% -2% 369.0 360.0 360.0 0.0 1,025.0 6.4% 24%
Mar-06 204.9 90.0 2,277.0 4.7% -36% 430.5 215.0 2,002.5 9.9% 4% 628.1 524.0 439.0 1,330.0 85.0 520.0 12% 1,198.6 14.4% 30% 308.5 283.0 283.0 0.0 1,090.0 7.1% 11%
Jun-06 134.1 59.0 2,273.0 3.1% -59% 690.3 345.0 2,001.0 15.8% 59% 570.9 470.0 405.0 1,327.0 65.0 515.0 -12% 1,214.7 13.1% 11% 470.7 453.0 453.0 0.0 1,039.0 10.8% 64%
Sep-06 225.2 99.0 2,275.0 4.7% -26% 792.1 420.0 1,886.0 16.4% 65% 643.8 525.0 455.0 1,336.5 70.0 510.0 13% 1,226.3 13.3% 34% 551.9 566.0 566.0 0.0 975.0 11.4% 60%
Dec-06 252.1 110.0 2,292.0 3.5% -16% 817.9 395.0 2,070.6 11.5% 85% 702.9 527.0 457.0 1,460.0 70.0 510.0 -1% 1,333.8 9.9% 15% 637.1 574.0 574.0 0.0 1,110.0 9.0% 73%
Mar-07 227.6 100.0 2,276.0 4.3% 11% 778.7 375.0 2,076.5 14.8% 81% 686.4 526.0 466.0 1,408.0 60.0 505.0 0% 1,305.0 13.0% 9% 575.3 516.0 516.0 0.0 1,115.0 10.9% 87%
Jun-07 238.3 104.0 2,291.0 4.4% 78% 890.2 450.0 1,978.2 16.5% 29% 717.7 530.0 470.0 1,462.0 60.0 510.0 13% 1,354.2 13.3% 26% 686.8 680.0 680.0 0.0 1,010.0 12.7% 46%
Sep-07 348.8 161.0 2,166.6 5.6% 55% 1,135.7 563.0 2,017.3 18.3% 43% 846.2 656.0 579.0 1,395.0 77.0 500.0 25% 1,289.9 13.6% 31% 772.2 784.0 784.0 0.0 985.0 12.4% 40%
Dec-07 446.4 195.0 2,289.0 4.6% 77% 1,149.9 550.0 2,090.8 12.0% 41% 1,068.7 782.0 692.0 1,478.0 90.0 510.0 48% 1,366.6 11.1% 52% 887.0 792.0 792.0 0.0 1,120.0 9.2% 39%
Mar-08 402.2 172.0 2,338.5 5.4% 77% 1,155.5 560.0 2,063.4 15.4% 48% 949.8 684.0 604.0 1,505.0 80.0 510.0 30% 1,388.6 12.6% 38% 986.5 873.0 633.0 240.0 1,130.0 13.1% 71%
Jun-08 369.3 170.0 2,172.5 4.9% 55% 1,141.0 600.0 1,901.7 15.3% 28% 1,003.7 773.0 693.0 1,390.0 80.0 505.0 46% 1,298.4 13.4% 40% 1,096.0 953.0 698.0 255.0 1,150.0 14.7% 60%
Sep-08 326.6 151.0 2,163.0 4.1% -6% 1,191.3 625.0 1,906.0 15.1% 5% 1,036.4 785.0 715.0 1,400.0 70.0 505.0 20% 1,320.2 13.1% 22% 1,065.8 1,050.0 790.0 260.0 1,015.0 13.5% 38%
Dec-08 212.0 93.0 2,280.0 2.1% -52% 1,344.1 690.0 1,948.0 13.2% 17% 831.0 635.0 540.0 1,450.0 95.0 505.0 -19% 1,308.6 8.2% -22% 1,166.8 1,106.0 841.0 265.0 1,055.0 11.5% 32%
Mar-09 291.1 138.0 2,109.5 3.6% -28% 1,002.5 523.0 1,916.8 12.3% -13% 758.9 680.0 590.0 1,210.0 90.0 500.0 -1% 1,116.0 9.3% -20% 892.5 875.0 610.0 265.0 1,020.0 10.9% -10%
Jun-09 301.2 142.0 2,121.0 3.6% -18% 1,269.0 804.0 1,578.4 15.2% 11% 827.8 707.0 612.0 1,275.0 95.0 500.0 -9% 1,170.9 9.9% -18% 931.0 950.0 685.0 265.0 980.0 11.2% -15%
Sep-09 311.6 148.4 2,100.0 3.5% -5% 1,572.5 1,258.0 1,250.0 17.6% 32% 790.2 714.4 619.4 1,200.0 95.0 495.0 -9% 1,106.2 8.8% -24% 564.8 579.3 309.3 270.0 975.0 6.3% -47%
Dec-09 222.6 101.2 2,200.0 2.1% 5% 1,572.6 1,233.4 1,275.0 14.6% 17% 829.4 723.9 623.9 1,250.0 100.0 495.0 14% 1,145.7 7.7% 0% 606.8 592.0 302.0 290.0 1,025.0 5.6% -48%
Mar-10 291.1 133.5 2,180.0 3.1% 0% 1,383.4 1,085.0 1,275.0 14.9% 38% 792.7 686.8 591.8 1,260.0 95.0 495.0 1% 1,154.2 8.5% 4% 499.8 494.9 214.9 280.0 1,010.0 5.4% -44%
Jun-10 316.2 147.1 2,150.0 3.2% 5% 1,573.6 1,258.9 1,250.0 16.0% 24% 849.3 742.4 647.4 1,240.0 95.0 490.0 5% 1,144.0 8.6% 3% 586.5 598.5 308.5 290.0 980.0 5.9% -37%
Sep-10 327.2 155.8 2,100.0 3.2% 5% 1,714.0 1,404.9 1,220.0 16.7% 9% 837.7 757.2 657.2 1,200.0 100.0 490.0 6% 1,106.2 8.2% 6% 610.0 628.9 328.9 300.0 970.0 5.9% 8%

FY 06 866.0 381.5 2,271.3 4.5% -35% 2,356.0 1,207.0 1,960.3 12.2% 44% 2,453.1 2,052.5 1,712.5 1,329.6 340.0 516.3 7% 1,195.9 12.7% 17% 1,700.0 1,662.0 1,662.0 0.0 1,032.3 8.8% 41%
FY 07 1,066.8 475.0 2,256.4 4.4% 23% 3,622.5 1,783.0 2,035.7 15.1% 54% 2,953.3 2,239.0 1,972.0 1,431.3 267.0 506.3 9% 1,320.7 12.3% 20% 2,671.5 2,554.0 2,554.0 0.0 1,055.0 11.1% 57%
FY 08 1,544.5 688.0 2,240.8 4.8% 45% 4,637.7 2,335.0 1,990.5 14.3% 28% 4,058.5 3,024.0 2,704.0 1,443.3 320.0 507.5 35% 1,343.5 12.5% 37% 4,035.2 3,668.0 2,913.0 755.0 1,103.8 12.4% 51%
FY 09 1,115.9 521.4 2,152.6 3.1% -28% 5,188.1 3,275.0 1,673.3 14.6% 12% 3,207.9 2,736.4 2,361.4 1,283.8 375.0 500.0 -10% 1,175.4 9.0% -21% 3,555.2 3,510.3 2,445.3 1,065.0 1,007.5 10.0% -12%
FY 10 1,157.2 537.6 2,157.5 2.9% 4% 6,243.6 4,982.2 1,255.0 15.6% 20% 3,309.0 2,910.3 2,520.3 1,237.5 390.0 492.5 6% 1,137.5 8.2% 3% 2,303.1 2,314.2 1,154.2 1,160.0 996.3 5.7% -35%

7832_109532_57_1.xls

Apple, Inc. Page 6 of 14

Apple, Inc.
Software & Peripherals Sales Breakdown ($ in Millions)
Fiscal Year End Sep 30

Software & Peripherals Sales

Qtrs & Total % of YoY Peripherals % of YoY % of YoY Software % of YoY
Years Sftwre & Other Sales Growth & Other Hrdwre Sales Growth iTunes Sales Growth & Other Sales Growth

Dec-05 4,025.0 70.0% 114% 303.0 5.3% 7% 212.0 3.7% 209% 325.0 5.7% 53%
Mar-06 2,787.0 63.9% 59% 264.0 6.1% -6% 225.0 5.2% 83% 324.0 7.4% 36%
Jun-06 2,504.0 57.3% 28% 236.0 5.4% -11% 227.0 5.2% 71% 314.0 7.2% -9%
Sep-06 2,624.0 54.2% 27% 297.0 6.1% 0% 230.0 4.8% 59% 316.0 6.5% 7%
Dec-06 4,704.9 66.1% 17% 297.0 4.2% -2% 300.0 4.2% 42% 347.0 4.9% 7%
Mar-07 2,996.0 56.9% 7% 309.0 5.9% 17% 305.0 5.8% 36% 345.0 6.6% 6%
Jun-07 2,877.0 53.2% 15% 308.0 5.7% 31% 295.0 5.5% 30% 386.0 7.1% 23%
Sep-07 3,113.9 50.1% 19% 346.0 5.6% 16% 310.0 5.0% 35% 430.0 6.9% 36%
Dec-07 6,056.0 63.0% 29% 382.0 4.0% 29% 390.0 4.1% 30% 628.0 6.5% 81%
Mar-08 4,018.0 53.5% 34% 412.0 5.5% 33% 403.0 5.4% 32% 529.0 7.0% 53%
Jun-08 3,854.0 51.6% 34% 437.0 5.9% 42% 390.0 5.2% 32% 501.0 6.7% 30%
Sep-08 4,275.0 54.1% 37% 428.0 5.4% 24% 405.0 5.1% 31% 549.0 7.0% 28%
Dec-08 6,613.0 65.0% 9% 378.0 3.7% -1% 470.0 4.6% 21% 606.0 6.0% -4%
Mar-09 5,218.0 63.9% 30% 358.0 4.4% -13% 495.0 6.1% 23% 625.0 7.7% 18%
Jun-09 5,007.9 60.1% 30% 341.0 4.1% -22% 470.0 5.6% 21% 528.0 6.3% 5%
Sep-09 5,710.9 63.8% 34% 351.0 3.9% -18% 477.9 5.3% 18% 614.9 6.9% 12%
Dec-09 7,526.0 70.0% 14% 381.8 3.5% 1% 517.0 4.8% 10% 636.3 5.9% 5%
Mar-10 6,306.6 68.0% 21% 365.2 3.9% 2% 524.7 5.7% 6% 631.3 6.8% 1%
Jun-10 6,537.5 66.3% 31% 347.8 3.5% 2% 526.4 5.3% 12% 601.9 6.1% 14%
Sep-10 6,764.0 66.0% 18% 368.5 3.6% 5% 535.2 5.2% 12% 602.6 5.9% -2%

FY 06 11,940.0 61.8% 56% 1,100.0 5.7% -2% 894.0 4.6% 90% 1,279.0 6.6% 17%
FY 07 13,691.8 57.0% 15% 1,260.0 5.2% 15% 1,210.0 5.0% 35% 1,508.0 6.3% 18%
FY 08 18,203.1 56.0% 33% 1,659.0 5.1% 32% 1,588.0 4.9% 31% 2,207.0 6.8% 46%
FY 09 22,549.8 63.3% 24% 1,428.0 4.0% -14% 1,912.9 5.4% 20% 2,373.9 6.7% 8%
FY 10 27,134.1 67.6% 20% 1,463.3 3.6% 2% 2,103.3 5.2% 10% 2,472.1 6.2% 4%

7832_109532_57_1.xls

Apple, Inc. Page 7 of 14

Apple, Inc.
iPhone & iPod Sales Breakdown ($ in Millions)
Fiscal Year End Sep 30

iPhone & iPod Sales Total Sales

Qtrs & iPhone & % of YoY Total YoY Unit Overall % of YoY Rev Other Music % of YoY Seq YoY
Years Related Units ASP Sales Growth iPod iPod Units classic ASP touch ASP nano ASP shuffle ASP Growth ASP Sales Growth Ex. iTunes Sales Growth Sales Growh Growth

Dec-05 -- -- -- -- -- 2,906.0 14,043.0 4,200.0 263.8 -- -- 6,000.0 230.0 3,800.0 110.0 207% 206.9 50.5% 140% 279.0 4.9% 157% 5,749.0 56.3% 64.7%
Mar-06 -- -- -- -- -- 1,714.0 8,526.0 1,726.0 299.6 -- -- 4,200.0 220.0 2,600.0 105.0 61% 201.0 39.3% 69% 260.0 6.0% 180% 4,359.0 -24.2% 34.4%
Jun-06 -- -- -- -- -- 1,497.0 8,111.0 1,561.0 307.7 -- -- 4,000.0 200.0 2,550.0 85.0 32% 184.6 34.3% 36% 230.0 5.3% 113% 4,370.0 0.3% 24.1%
Sep-06 -- -- -- -- -- 1,559.0 8,729.0 1,704.0 295.9 -- -- 4,800.0 185.0 2,225.0 75.0 35% 178.6 32.2% 29% 222.0 4.6% 85% 4,837.0 10.7% 31.5%
Dec-06 -- -- -- -- -- 3,427.0 21,066.0 5,056.2 290.0 -- -- 8,000.0 175.0 8,009.8 70.0 50% 162.7 48.2% 18% 333.9 4.7% 20% 7,115.0 47.1% 23.8%
Mar-07 -- -- -- -- -- 1,689.0 10,549.0 2,360.0 290.0 -- -- 4,100.0 175.2 4,089.0 70.0 24% 160.1 32.1% -1% 348.0 6.6% 34% 5,264.0 -26.0% 20.8%
Jun-07 5.0 0.27 650.0 0.1% -- 1,570.0 9,815.0 2,000.0 296.0 -- -- 3,915.0 180.1 3,900.0 70.0 21% 160.0 29.0% 5% 313.0 5.8% 36% 5,410.0 2.8% 23.8%
Sep-07 118.0 1.12 675.0 1.9% -- 1,619.0 10,200.0 1,000.0 270.2 1,100.0 340.3 4,050.0 170.6 4,050.0 70.0 17% 158.7 26.0% 4% 291.0 4.7% 31% 6,216.9 14.9% 28.5%
Dec-07 241.0 2.32 600.0 2.5% -- 3,997.0 22,121.0 2,000.0 300.0 3,500.0 360.0 8,300.0 182.3 8,321.0 75.0 5% 180.7 41.6% 17% 418.0 4.4% 25% 9,608.0 54.5% 35.0%
Mar-08 378.0 1.70 500.0 5.0% -- 1,818.0 10,644.0 844.0 280.0 2,000.0 335.0 3,900.0 168.8 3,900.0 65.0 1% 170.8 24.2% 8% 478.0 6.4% 37% 7,512.0 -21.8% 42.7%
Jun-08 419.0 0.72 600.0 5.6% -- 1,677.9 11,011.0 900.0 280.0 2,000.0 284.9 4,111.0 145.0 4,000.0 65.0 12% 152.4 22.5% 7% 429.1 5.7% 37% 7,464.0 -0.6% 38.0%
Sep-08 806.0 6.89 500.0 10.2% 583% 1,660.0 11,052.0 900.0 280.0 2,152.0 270.0 4,000.0 141.8 4,000.0 65.0 8% 150.2 21.0% 3% 427.0 5.4% 47% 7,895.0 5.8% 27.0%
Dec-08 1,247.0 4.36 600.0 12.3% 417% 3,371.0 22,727.0 1,800.0 250.0 3,927.0 270.0 8,500.0 153.9 8,500.0 65.0 3% 148.3 33.2% -16% 541.0 5.3% 29% 10,167.0 28.8% 5.8%
Mar-09 1,521.0 3.79 600.0 18.6% 302% 1,665.0 11,013.0 700.0 250.0 2,300.0 270.0 3,813.0 150.8 4,200.0 70.0 3% 151.2 20.4% -8% 554.0 6.8% 16% 8,163.0 -19.7% 8.7%
Jun-09 1,689.0 5.21 583.3 20.3% 303% 1,491.9 10,215.0 350.0 210.0 4,600.0 208.4 2,400.0 120.0 2,865.0 60.0 -7% 146.1 17.9% -11% 488.0 5.9% 14% 8,337.0 2.1% 11.7%
Sep-09 2,301.1 7.00 466.7 25.7% 185% 1,465.2 10,000.0 300.0 200.0 4,800.0 204.0 2,200.0 120.0 2,700.0 60.0 -10% 146.5 16.4% -12% 500.8 5.6% 17% 8,950.0 7.4% 13.4% Est
Dec-09 2,715.5 9.30 450.0 25.2% 118% 2,655.0 19,000.0 600.0 200.0 7,800.0 205.0 5,000.0 120.0 5,600.0 60.0 -16% 139.7 24.7% -21% 620.4 5.8% 15% 10,757.4 20.2% 5.8% Est
Mar-10 2,814.7 5.00 450.0 30.4% 85% 1,358.0 8,875.0 275.0 200.0 4,600.0 205.0 2,000.0 120.0 2,000.0 60.0 -19% 153.0 14.6% -18% 612.8 6.6% 11% 9,273.6 -13.8% 13.6% Est
Jun-10 3,223.5 7.00 433.3 32.7% 91% 1,288.0 8,600.0 300.0 200.0 4,400.0 200.0 1,900.0 120.0 2,000.0 60.0 -16% 149.8 13.1% -14% 549.9 5.6% 13% 9,863.1 6.4% 18.3% Est
Sep-10 3,340.3 9.00 400.0 32.6% 45% 1,363.0 9,125.0 325.0 200.0 4,600.0 200.0 2,100.0 120.0 2,100.0 60.0 -9% 149.4 13.3% -7% 554.3 5.4% 11% 10,252.8 4.0% 14.6% Est

FY 06 -- -- -- -- -- 7,676.0 39,409.0 9,191.0 291.7 -- -- 19,000.0 208.8 11,175.0 93.8 75% 192.8 39.7% 69% 991.0 5.1% 131% 19,315.0 -- 38.6%
FY 07 123.0 1.39 662.5 0.5% -- 8,304.9 51,630.0 10,416.2 286.6 1,100.0 340.3 20,065.0 175.2 20,048.8 70.0 31% 160.4 34.6% 8% 1,285.9 5.4% 30% 24,005.9 -- 24.3%
FY 08 1,844.0 11.63 550.0 5.7% 1400% 9,153.0 54,828.0 4,644.0 285.0 9,652.0 312.5 20,311.0 159.4 20,221.0 67.5 6% 163.5 28.2% 10% 1,752.1 5.4% 36% 32,479.0 -- 35.3%
FY 09 6,758.1 20.36 562.5 19.0% 266% 7,993.2 53,955.0 3,150.0 227.5 15,627.0 238.1 16,913.0 136.2 18,265.0 63.8 -2% 148.0 22.4% -13% 2,083.8 5.9% 19% 35,616.9 -- 9.7% Est
FY 10 12,094.0 30.30 433.3 30.1% 79% 6,664.0 45,600.0 1,500.0 200.0 21,400.0 202.5 11,000.0 120.0 11,700.0 60.0 -15% 148.0 16.6% -17% 2,337.4 5.8% 12% 40,146.9 -- 12.7% Est

7832_109532_57_1.xls

Apple, Inc. Page 8 of 14

 Apple, Inc.
iPhone Sales Analysis
Fiscal Year End Sep 30

Recognized iPhone Hardware Revenue iPhone Accessory Rev Carrier Revenue Share Total
(1/24th of iPhone revenue is recognized each month) (recognized at time of sale) (recognized 1/24 each month) Recognized
Month iPhone Booked 1/24th of Recognized Accessory Rev Accessory % Unlocked Carrier Carrier iPhone Adds Rev Shr Full Month Wtd Avg Recognized iPhone
Qrtr Units ASP ($) Hrdwre Rev Hrdwre Rev Hrdwre Rev Per iPhone Sold iPhone Rev Unlocked Phones iPhone Adds (weighted avg) Per Sub Rev Share Rev Shr Carrier Rev Shr Revenue
Apr 0.00 -- -- -- --
May 0.00 -- -- -- --
Jun 0.27 $675 0.0 5.0 0.0 0% 0.00 0.27 $10.00 2.7
Jun-07 0.27 $650 0.0 -- 0.0 $18.52 5.0 0% 0.00 0.27 $10.00 5.00
Jul 0.27 $675 182.3 7.6 12.6 10% 0.03 0.24 0.12 $10.00 2.4 1.2 3.9
Aug 0.27 $675 182.3 7.6 20.2 20% 0.05 0.22 0.11 $10.00 2.2 1.1 6.2
Sep 0.58 $675 390.8 16.3 36.5 30% 0.17 0.41 0.20 $10.00 4.1 2.0 9.3
Sep-07 1.12 $675 755.3 -- 69.3 $26.15 29.3 20% 0.25 0.86 0.43 $10.00 19.4 117.95
Oct 0.30 $600 180.0 7.5 44.0 52% 0.16 0.14 0.07 $5.00 0.7 0.4 11.7
Nov 0.40 $600 240.0 10.0 54.0 60% 0.24 0.16 0.08 $5.00 0.8 0.4 12.5
Dec 1.62 $600 969.0 40.4 94.3 60% 0.97 0.65 0.32 $5.00 3.2 1.6 14.5
Dec-07 2.32 $600 1,389.0 -- 192.3 $4.35 10.1 57% 1.37 0.95 0.48 $5.00 38.6 240.99
Jan 0.20 $500 100.0 4.2 98.5 50% 0.10 0.10 0.05 $5.00 0.5 0.3 16.3
Feb 0.20 $500 100.0 4.2 102.7 50% 0.10 0.10 0.05 $5.00 0.5 0.3 16.8
Mar 1.30 $500 650.0 4.1 106.7 50% 0.65 0.65 0.33 $5.00 3.3 1.6 18.7
Mar-08 1.70 $500 850.0 -- 307.9 $10.67 18.1 50% 0.85 0.85 0.43 $5.00 51.9 377.98
Apr 0.40 $600 240.0 0.0 106.7 50% 0.20 0.20 0.10 $5.00 1.0 0.5 20.8
May 0.30 $600 180.0 0.0 106.7 50% 0.15 0.15 0.08 $5.00 0.8 0.4 21.7
Jun 0.02 $600 10.2 0.0 106.7 50% 0.01 0.01 0.00 $5.00 0.0 0.0 22.1
Jun-08 0.72 $600 430.2 -- 320.2 $47.50 34.1 50% 0.36 0.36 0.18 $5.00 64.7 418.96
Jul 2.10 $500 1,050.0 81.7 188.5 22.1
Aug 2.39 $500 1,196.0 49.8 238.3 22.1
Sep 2.40 $500 1,200.0 50.0 288.3 22.1
Sep-08 6.89 $500 3,446.0 -- 715.0 $3.57 24.6 66.4 806.00
Oct 1.20 $600 720.0 30.0 318.3 22.1
Nov 1.40 $600 840.0 35.0 353.3 22.1
Dec 1.76 $600 1,057.8 44.1 397.4 22.1
Dec-08 4.36 $600 2,617.8 -- 1,068.9 $25.60 111.7 66.4 1,247.01
Jan 1.20 $600 720.0 30.0 397.4 22.1
Feb 1.20 $600 720.0 30.0 457.4 22.1
Mar 1.39 $600 835.8 17.4 474.8 22.1
Mar-09 3.79 $600 2,275.8 -- 1,329.5 $32.97 125.1 66.4 1,521.0
Apr 1.10 $600 660.0 0.0 474.8 22.1
May 1.00 $600 600.0 0.0 474.8 22.1
Jun 3.11 $550 1,709.4 41.3 511.0 19.4
Jun-09 5.21 $583 2,969.4 -- 1,460.6 $31.63 164.7 63.7 1,689.0
Jul 2.50 $500 1,250.0 137.6 641.0 17.0
Aug 2.00 $450 900.0 37.5 670.9 14.8
Sep 2.50 $450 1,125.0 46.9 701.5 10.8
Sep-09 7.00 $467 3,275.0 -- 2,013.5 $35.00 245.0 42.6 2,301.1
Oct 2.50 $450 1,125.0 46.9 740.9 10.1
Nov 3.00 $450 1,350.0 56.3 787.1 9.3
Dec 3.80 $450 1,710.0 71.3 818.0 6.0
Dec-09 9.30 $450 4,185.0 -- 2,346.1 $37.00 344.1 25.4 2,715.5
Jan 1.50 $450 675.0 28.1 842.0 5.5
Feb 1.50 $450 675.0 28.1 865.9 5.0
Mar 2.00 $450 900.0 37.5 899.4 1.8
Mar-10 5.00 $450 2,250.0 -- 2,607.3 $39.00 195.0 12.4 2,814.7
Apr 2.00 $450 900.0 37.5 936.9 0.8
May 2.00 $450 900.0 37.5 974.4 0.0
Jun 3.00 $400 1,200.0 50.0 1,024.4 0.0
Jun-10 7.00 $433 3,000.0 -- 2,935.6 $41.00 287.0 0.8 3,223.5
Jul 2.50 $400 1,000.0 41.7 984.3 0.0
Aug 2.50 $400 1,000.0 41.7 976.2 0.0
Sep 4.00 $400 1,600.0 66.7 992.8 0.0
Sep-10 9.00 $400 3,600.0 -- 2,953.3 $43.00 387.0 0.0 3,340.3
Oct 3.00 $400 1,200.0 50.0 1,012.8 0.0
Nov 3.50 $400 1,400.0 58.3 1,036.2 0.0
Dec 5.00 $400 2,000.0 83.3 1,075.4 0.0
Dec-10 11.50 $400 4,600.0 -- 3,124.4 $45.00 517.5 0.0 3,641.9

FY 07 1.39 $675 755.3 -- 69.3 -- 34.3 15% 0.25 1.13 0.43 $10.00 -- -- 19.4 123.0
FY 08 11.62 $550 6,115.2 -- 1,535.5 $16.52 86.8 39% 2.57 2.16 1.08 $3.75 -- -- 221.6 1,843.9
FY 09 20.36 $563 11,138.0 -- 5,872.5 $31.30 646.5 0% 0.00 0.00 0.00 $0.00 -- -- 239.2 6,758.1
FY 10 30.30 $433 13,035.0 -- 10,842.3 $40.00 1213.1 0% 0.00 0.00 0.00 $0.00 -- -- 38.6 12,094.0

CY 07 3.70 $642 2,144.3 -- 261.5 -- 44.3 26% 1.62 2.08 0.91 $8.33 -- -- 58.1 363.9
CY 08 13.67 $550 7,344.0 -- 2,412.1 $21.83 188.4 25% 1.21 1.21 0.60 $2.50 -- -- 249.4 2,849.9
CY 09 25.30 $525 12,705.2 -- 7,149.6 $34.15 878.9 0% 0.00 0.00 0.00 $0.00 -- -- 198.1 8,226.6
CY 10 32.50 $421 13,450.0 -- 11,620.7 $42.00 1386.5 0% 0.00 0.00 0.00 $0.00 -- -- 13.2 13,020.4

Apple, Inc. Page 9 of 14

 Apple, Inc.
Apple TV Sales Analysis
Fiscal Year End Sep 30

Quarter AppleTV Monthly Monthly AppleTV Qrtrly AppleTV Qrtrly

Month Units ASP Booked Rev Rev Rec Booked Rev Recognized Rev
Mar-07 0.20 -- 60.0 0.0
Jan-07 0.00 -- -- --
Feb-07 0.00 -- -- --
Mar-07 0.20 300.0 60.0 2.5
Jun-07 0.29 300.0 86.1 3.6
Apr-07 0.10 300.0 30.0 --
May-07 0.10 300.0 30.0 --
Jun-07 0.09 300.0 26.1 1.1
Sep-07 0.35 300.0 105.0 8.0
Jul-07 0.10 300.0 30.0 1.3
Aug-07 0.10 300.0 30.0 1.3
Sep-07 0.15 300.0 45.0 1.9
Dec-07 0.40 280.0 112.0 12.6
Oct-07 0.10 280.0 28.0 1.2
Nov-07 0.10 280.0 28.0 1.2
Dec-07 0.20 280.0 56.0 2.3
Mar-08 0.28 280.0 78.4 15.9
Jan-08 0.08 280.0 22.4 0.9
Feb-08 0.08 280.0 22.4 0.9
Mar-08 0.12 280.0 33.6 1.4
Jun-08 0.28 275.0 77.0 19.1
Apr-08 0.08 275.0 22.0 0.9
May-08 0.08 275.0 22.0 0.9
Jun-08 0.12 275.0 33.0 1.4
Sep-08 0.35 270.0 94.5 23.0
Jul-08 0.10 270.0 27.0 1.1
Aug-08 0.10 270.0 27.0 1.1
Sep-08 0.15 270.0 40.5 1.7
Dec-08 1.20 280.0 312.0 36.0
Oct-08 0.35 260.0 91.0 3.8
Nov-08 0.35 260.0 91.0 3.8
Dec-08 0.50 260.0 130.0 5.4
Mar-09 1.10 280.0 275.0 45.0
Jan-09 0.30 250.0 75.0 3.1
Feb-09 0.30 250.0 75.0 3.1
Mar-09 0.50 250.0 125.0 5.2
Jun-09 1.60 275.0 384.0 59.9
Apr-09 0.40 240.0 96.0 4.0
May-09 0.40 240.0 96.0 4.0
Jun-09 0.80 240.0 192.0 8.0
Sep-09 1.90 270.0 437.0 73.7
Jul-09 0.50 230.0 115.0 4.8
Aug-09 0.50 230.0 115.0 4.8
Sep-09 0.90 230.0 207.0 8.6
Dec-09 2.00 280.0 440.0 87.4
Oct-09 0.70 220.0 154.0 6.4
Nov-09 0.70 220.0 154.0 6.4
Dec-09 0.60 220.0 132.0 5.5
Mar-10 1.60 280.0 320.0 97.5
Jan-10 0.50 200.0 100.0 4.2
Feb-10 0.50 200.0 100.0 4.2
Mar-10 0.60 200.0 120.0 5.0
Jun-10 1.60 275.0 288.0 106.3
Apr-10 0.50 180.0 90.0 3.8
May-10 0.50 180.0 90.0 3.8
Jun-10 0.60 180.0 108.0 4.5
Sep-10 2.30 270.0 414.0 119.6
Jul-10 0.60 180.0 108.0 4.5
Aug-10 0.60 180.0 108.0 4.5
Sep-10 1.10 180.0 198.0 8.3

FY 07 0.84 300.0 251.1 -- 11.6

FY 08 1.31 276.3 361.9 -- 70.7
FY 09 5.80 252.8 1,408.0 -- 214.7
FY 10 7.50 215.3 1,462.0 -- 410.7

CY 07 1.04 293.3 363.1 -- 24.2

CY 08 2.11 272.5 561.9 -- 94.1
CY 09 6.60 245.3 1,536.0 -- 266.1

Apple, Inc. Page 10 of 14

 Apple, Inc.
Non GAAP Income Statement ($ in Millions)
Fiscal Year End Sep 30

Qtrs & PF Cost of Gross % of % of Oper Oper Int & Pretax Tax Income PF Diluted PF Growth Y/Y
Years Sales Sales GM Profit R&D Sales SG&A Sales Op Ex Inc Margin Other Inc Rate Taxes Net Inc Shares EPS Rev EPS

Dec-07 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Mar-08 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Jun-08 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Sep-08 11,682.0 7,131.0 39% 4,551.0 298.0 3% 999.0 9% 1,297.0 3,254.0 28% 140.0 3,394.0 28% 957.0 2,437.0 904.8 2.69 -- --
Dec-08 11,799.0 7,272.0 38% 4,527.0 315.0 3% 1,091.0 9% 1,406.0 3,121.0 26% 158.0 3,279.0 30% 974.8 2,304.2 901.5 2.56 -- --
Mar-09 9,056.0 5,432.0 40% 3,624.0 319.0 4% 985.0 11% 1,304.0 2,320.0 26% 63.0 2,383.0 30% 723.2 1,659.8 903.0 1.84 -- --
Jun-09 9,742.0 5,714.0 41% 4,028.0 341.0 4% 1,010.0 10% 1,351.0 2,677.0 27% 60.0 2,737.0 29% 794.9 1,942.1 909.2 2.14 -- --
Sep-09 10,574.8 6,344.9 40% 4,229.9 393.8 4% 1,109.8 10% 1,503.6 2,726.3 26% 30.0 2,756.3 30% 826.9 1,929.4 911.2 2.12 Est -9% -21%
Dec-09 12,949.0 7,717.6 40% 5,231.4 398.0 3% 1,151.0 9% 1,549.1 3,682.3 28% 40.0 3,722.3 30% 1,116.7 2,605.6 913.2 2.85 Est 10% 12%
Mar-10 9,138.8 5,455.9 40% 3,682.9 352.4 4% 1,010.8 11% 1,363.2 2,319.7 25% 45.0 2,364.7 30% 709.4 1,655.3 917.2 1.80 Est 1% -2%
Jun-10 10,109.2 6,025.1 40% 4,084.1 364.9 4% 1,065.2 11% 1,430.1 2,654.0 26% 50.0 2,704.0 30% 811.2 1,892.8 921.2 2.05 Est 4% -4%
Sep-10 12,022.8 7,165.6 40% 4,857.2 399.9 3% 1,086.8 9% 1,486.7 3,370.6 28% 50.0 3,420.6 30% 1,026.2 2,394.4 925.2 2.59 Est 14% 22%

FY 09 41,171.8 24,762.9 40% 16,408.9 1,368.8 3% 4,195.8 10% 5,564.6 10,844.3 26% 311.0 11,155.3 30% 3,319.8 7,835.6 906.2 8.65 Est -- --
FY 10 44,219.8 26,364.1 40% 17,855.7 1,515.2 3% 4,313.9 10% 5,829.1 12,026.6 27% 185.0 12,211.6 30% 3,663.5 8,548.1 919.2 9.30 Est 7% 8%

CY09 42,321.8 25,208.5 40% 17,113.3 1,451.8 3% 4,255.8 10% 5,707.7 11,405.6 27% 193.0 11,598.6 30% 3,461.7 8,137.0 909.1 8.95 Est -- --

Apple, Inc. Page 11 of 14

 Company Note
September 24, 2009

Important Research Disclosures

Rating and Price Target History for: Apple, Inc. as of 09-23-2009
01/18/07 04/13/07 04/26/07 06/07/07 07/20/07 07/26/07 10/23/07 10/25/07 11/19/07 11/19/07 03/31/08
OP:$124 OP:$123 OP:$140 OP:$160 OP:$205 OP:$211 OP:$222 OP:$250 AL: On B:$250 AL: Off
240

200

160

120

80

40
Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2
2007 2008 2009

09/02/08 12/04/08 01/22/09 07/01/09 07/06/09 07/22/09

AL: On B:$235 B:$180 OW:180.00 OW:$180 OW:$186

Created by BlueMatrix

Notes: The boxes on the Rating and Price Target History chart above indicate the date of the Research Note, the rating, and the price target. Each box
represents a date on which an analyst made a change to a rating or price target, except for the first box, which may only represent the first Note written during
the past three years.

Legend:
I: Initiating Coverage
R: Resuming Coverage
T: Transferring Coverage
D: Discontinuing Coverage
S: Suspending Coverage
OW: Overweight
N: Neutral
UW: Underweight
B: Buy (Piper Jaffray discontinued use of the B, N, and S ratings on June 30, 2009)
N: Neutral
S: Sell
OP: Outperform (Piper Jaffray discontinued use of the OP, MP and UP ratings on November 15, 2007)
MP: Market Perform
UP: Underperform
AL On/AL Off: Placed on/removed from the Alpha List maintained by Piper Jaffray
NA: Not Available
UR: Under Review
GP On/GP Off: Placed on/removed from one of the Guided Portfolios maintained by Piper Jaffray
(Piper Jaffray discontinued the Guided Portfolios in August 2006.)

Distribution of Ratings/IB Services

Piper Jaffray

IB Serv./Past 12 Mos.
Rating Count Percent Count Percent

BUY [OW] 271 43.80 45 16.61

HOLD [N] 241 38.90 14 5.81
SELL [UW] 107 17.30 6 5.61

Note: Distribution of Ratings/IB Services shows the number of companies currently in each rating category from which Piper Jaffray and its affiliates received
compensation for investment banking services within the past 12 months. FINRA rules require disclosure of which ratings most closely correspond with
"buy," "hold," and "sell" recommendations. Piper Jaffray ratings are not the equivalent of buy, hold or sell, but instead represent recommended relative
weightings. Nevertheless, Overweight corresponds most closely with buy, Neutral with hold and Underweight with sell. See Stock Rating definitions below.

Apple, Inc. Page 12 of 14

 Company Note
September 24, 2009
Important Research Disclosures
Analyst Certification — Gene Munster, Sr Research Analyst
Analyst Certification — Michael J. Olson, Sr Research Analyst
The views expressed in this report accurately reflect my personal views about the subject company and the subject security. In addition, no part of my
compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report.

Research Disclosures
Piper Jaffray was making a market in the securities of Apple, Inc. at the time this research report was published. Piper Jaffray will buy and sell Apple, Inc.
securities on a principal basis.

Affiliate Disclosures: This report has been prepared by Piper Jaffray & Co. and/or its affiliates Piper Jaffray Ltd. and Piper Jaffray Asia Securities
Limited, all of which are subsidiaries of Piper Jaffray Companies (collectively Piper Jaffray). Piper Jaffray & Co. is regulated by FINRA, NYSE, and the
United States Securities and Exchange Commission, and its headquarters is located at 800 Nicollet Mall, Minneapolis, MN 55402. Piper Jaffray Ltd. is
registered in England, no. 3846990, and its registered office is One South Place, London, EC2M 2RB. Piper Jaffray Ltd. is authorised and regulated by
the UK Financial Services Authority ("FSA"), entered on the FSA's register, no. 191657 and is a member of the London Stock Exchange. Piper Jaffray
Asia Securities Limited is a licensed corporation regulated by the Securities and Futures Commission of Hong Kong ("SFC"), entered on the SFC's
register, no. ABO154, and is an exchange participant of The Stock Exchange of Hong Kong Limited. Its headquarters is located at 39/F Tower 1 Lippo
Centre, 89 Queensway, Hong Kong. Disclosures in this section and in the Other Important Information section referencing Piper Jaffray include all
affiliated entities unless otherwise specified.

Piper Jaffray research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.

Rating Definitions
Stock Ratings: Piper Jaffray ratings are indicators of expected total return (price appreciation plus dividend) within the next 12 months. At
times analysts may specify a different investment horizon or may include additional investment time horizons for specific stocks. Stock
performance is measured relative to the group of stocks covered by each analyst. Lists of the stocks covered by each are available at
www.piperjaffray.com/researchdisclosures. Stock ratings and/or stock coverage may be suspended from time to time in the event that there
is no active analyst opinion or analyst coverage, but the opinion or coverage is expected to resume. Research reports and ratings should
not be relied upon as individual investment advice. As always, an investor's decision to buy or sell a security must depend on individual
circumstances, including existing holdings, time horizons and risk tolerance.

• Overweight (OW): Anticipated to outperform relative to the median of the group of stocks covered by the analyst.
• Neutral (N): Anticipated to perform in line relative to the median of the group of stocks covered by the analyst.
• Underweight (UW): Anticipated to underperform relative to the median of the group of stocks covered by the analyst.

An industry outlook represents the analyst's view of the industry represented by the stocks in the analyst's coverage group. A Favorable
industry outlook generally means that the analyst expects the fundamentals and/or valuations of the industry to improve over the investment
time horizon. A Neutral industry outlook generally means that the analyst does not expect the fundamentals and/or valuations of the industry
to either improve or deteriorate meaningfully from its current state. An Unfavorable industry outlook generally means that the analyst
expects the fundamentals and/or valuations of the industry to deteriorate meaningfully over the investment time horizon.

The Alpha List consists of Overweight-rated stocks that have been selected by analysts from among their best ideas within their universe of
covered stocks, with an eye toward above-average returns over the next three to six months.

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 Company Note
September 24, 2009

Other Important Information

The material regarding the subject company is based on data obtained from sources we deem to be reliable; it is not guaranteed as to accuracy and
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