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Company Report

Apple Computer Inc.

Halil Akdogu

October 28, 2008


TABLE OF CONTENT

I. History.....................................................................................................................1
II. SWOT Analysis.........................................................................................................1
III. Porter’s Analysis........................................................................................................3
IV. Financials.................................................................................................................4
Liquidity........................................................................................................................4
Assets Management.......................................................................................................5
Long-Term Debt Paying Ability..........................................................................................5
Profitability....................................................................................................................6
Market Performance.......................................................................................................6
V. Recommendation......................................................................................................6
APPENDIX....................................................................................................................8
EXHIBIT 1..................................................................................................................8
EXHIBIT 2..................................................................................................................9
EXHIBIT 3..................................................................................................................9
EXHIBIT 4................................................................................................................10
EXHIBIT 5................................................................................................................11
EXHIBIT 6................................................................................................................12
I. History

1
Steven Wozniak and Steven Jobs are the creators of Apple Computer. In 1976, the Apple I was
designed by Steven Wozniak. Steven Jobs, his friend and computer club partner, persuaded Wozniak
that this was an opportunity to make money and therefore to sell these computers. On April 1, 1976,
Apple Computer was created by Wozniak and Jobs. A local computer dealer agreed to sell the units and
within 10 months, 200 units of the Apple 1 had been sold. Realizing a market gap, Apple began to
increase research & development to soon introduce the Apple II. The Apple II, included color graphics
and came in its own plastic casing. The first real computer to come pre-assembled, therefore, making it
more attractive to a larger group of consumers. After the introduction of the Apple II, the orders for Apples
increased dramatically. Jobs and Wozniak continued building systems out of their garage for two years
until they moved to their current Apple headquarters in Cupertino, California. In the 1990’s they fell
behind their competitors due to stingy patents on their computers, which was not tolerated by customers.
This step enabled Microsoft to become the market leader in the industry. Additionally, Apple had to many
backorders in 1995 which was not a good promotion for the brand name. However, NEXTstep was
purchased to regain market share followed by a 5-year patent-cross license with Microsoft in 1997 for
their Microsoft Office package. (“The History of Apple Computers,” 2008)

Today Apple designs, manufactures, and markets personal computers and related software, services,
peripherals, and networking solutions. The company also designs, develops, and markets a line of
portable digital music players, more commonly known as the iPod and the iPhone. The iPod was the
most popular item since it has been available. In 2007, Apple has announced that it has sold its 100
millionth ipod, and other related music products and accessories have also seen an immense increase
over the same period. The portable and desktop computers are also industry leaders and both have had
strong sales growth over the past fouryears. Apple sells its products worldwide through its online stores,
retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers.
2
“Apple believes that the personal computer has become the center of an evolving digital lifestyle by
integrating and enhancing the utility of advanced digital services and electronic devices” (Form 10-K for
Apple Inc., 2007, p.1). They have managed to turn into a “cool” company that is attracting increasingly
new clients with their products and their innovative designs.
3
Apple is currently traded on the New York Stock exchange. Apple is valued at $83.63 billion and
reported net sales at the end of 2007 of $24,006 million, which resulted in a net income of $3,496 million.
From 2005 to 2007, Apple’s total revenue went up by 72%, whereas the total net income increase by
162%. (“Google Finance,” 2008)

II. SWOT Analysis

The primary objective of a corporation is to align the interest of management and shareholders, ensuring
that the company’s business and affairs are managed in accordance to its stated goals and objectives.
The way in which this objective will be reached is through the supervision of a highly efficient Board of
directors and a knowledgeable management team that is aware of the company’s strengths,
weaknesses, opportunities and threats. These essential points have to be managed well to stay
competitive. Each situation is more closely discussed in the following paragraphs.

Strengths

Apple has proven itself in the industry throughout the past 30 years and is known, especially in the past 5
years, as an innovative company with great perspectives. Their experience in the hardware sector
1
History of Apple Computers, http://web.bryant.edu/~ehu/h364proj/fall_97/hill/happle.html (October 18,
2008)
2
Form 10-K for Apple Inc, http://biz.yahoo.com/e/071115/aapl10-k.html (October 18, 2008)
3
Google Finance, http://finance.google.com/finance?q=aapl (October 28, 2008)
3
enabled them to produce high quality products which created loyal customers. These loyal customers
make use of Apple’s product diversification, which are highly compatible with each other. As stated by
Max McKeown, “An organization that can deliberately, methodically, even joyously renew itself has a
“killer” culture – one that delivers that much sought-after competitive advantage. Simply by shortening
the cycles of renewal or innovation through experimentation, such a culture will naturally replace its own
products and services by finding better alternatives,” (People Management, 2008, p.29). Steve Jobs
played an important role in making this business philosophy to be a vital component of the corporate
culture. However, a strong corporate culture is only the first step of many. Strong advertisement
strategies have followed to bring these new innovations to the customer. An additional strength is their
feeling for outstanding designs which enabled them to distinguish its products from competitor’s
products. As a result of their increasing research & development, it appears that Apple has been a step
ahead of their competitors over the past few years. Apple has created software that allows users to work
on two operating systems simultaneously; this step was taken with the hope to gain more market share
in the hardware sector. These operating systems are OS X and their major competitors Microsoft
Windows.

Weaknesses

One of Apple’s weaknesses is the high price that is being charged for its products and services. In
comparison to other companies, Apple is charging approximately $3000 (depending on peripheral
choice) whereas other competitors are charging a significant dollar amount less. Especially, students are
more reluctant to pay more for similar products. However, despite these high prices, Apple has done
extremely well for itself and thus is possibly one of the main reasons why they do not lower their pricing
mentality. Additionally, Apple has had issues with faulty batteries in their iPods, however, although
expectations for Apple products are high, customers seem to be very forgiving in terms of the faulty
batteries.

Mac computers are known to be non-compatible with certain types of software that are available widely
for Microsoft Windows. This might be a reason for many customers to use competitor products (mainly
Microsoft Windows). Additionally, Apple’s management has decided not to include the new Blue-ray
Technology in their new Mac Books. Analysts believe that the main reason for this decision is the high
price of these drives. This line of reasoning is doubtful since it is said that Blue-ray is the new generation
for video files after the DVD format.

Apple has no Dividend Policy, which means that there are no dividends paid out and also no Dividend
Reinvestment Program (DRIP). This may scare away investors that are looking for a fixed income.
However, Apple has been growing aggressively in the past years and therefore has the need for
cash/cash equivalents for further growth. The last dividend payout Apple has made was in December
1995.

Opportunities

In recent times, companies have to be aware of the opportunities available in the market. Especially, the
music sector has been very profitable in the past few years. Apple has created ITunes and an online
music store to compete in the MP3 sector. This trend will no doubt increase, since the availability to the
World Wide Web grows constantly. For this reason, Apple should focus on legal downloading for an
affordable price and include radio podcast downloads at any time of the day.

Apple’s heavy advertising strategy over the past few years brought high costs, which were passed on to
the consumer. However, since Apple has established itself in the North American market, they might
consider dropping the prices of their product lines to be more competitive with competitor’s pricing
strategies.

Threats
4
In every industry the main threat is competition, which regulates the supply amount of each corporation
to the demanding customer. Since Apple is active in three major industries, which are the hardware
sector (Computers), the consumer electronics sector (iPod, iPhone), and the software sector (Mac OS
X), they are competing against large companies worldwide.

In 2007 Apple announced that it has sold their 100 millionth iPod. Since the economy is not in its glory
times recently, consumers might not be willing to buy these sorts of products. Apple Inc. has had good
sales throughout the years with iPods; however, they may suffer a decrease in their sales due to the
economical situation. Apple has been a trendsetter in the past years but will have to continue in doing so
if they want to maintain or even improve their situation. Apple needs to remain true to its track record of
continuous innovation due to the rapid changes which occur in technology. This is primarily because
Apple operates in an industry, where the substitution effect is enormous.

The man that probably had and has the most influence on the firm’s upswing is Steve Jobs. People
correlate the name Steve Jobs immediately with the company Apple Inc., thus, a threat is the uncertain
future of the company if Steve Jobs is not available for any reason. It seems that Apple Inc. relies too
much on his ideas and leadership skills.

III. Porter’s Analysis

Competitive Rivalry

As previously mentioned, Apple has large competitive rivalries in all the industries it is operating in. Thus,
Apple’s level of competition is high. Some of the major competitors are listed below:

• Microsoft (Microsoft Windows)


• Nokia (Cell phones)
• Creative (mp3 players)
• Dell (Hardware)
• Hewlett-Packard Company (Hardware)
• LG Group (Hardware)
• Sony (Hardware, entertainment system)
• Online music stores (iTunes)

Many of these competitors are merging with other corporations to gain more market share and increase
their profits.

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Threat of New Entrants

The main area Apple has to be concerned with is the mp3 sector, through which they provide iTunes. 4It
is said that Apple has a 70% market share in the online music online business, which could seem like an
opportunity for new entrants. Furthermore, competitors of Apple have realized how much success they
have with their brilliant designs. Apple is seen as a trendsetter and companies attempt to mimic its
designs to realize these profits as well. The result of this will be that customers will have more choices to
pick from, possibly at a lower price. The threat of new entrants is, depending on sector, low to medium.
(“Company History,” 2008)

Bargaining Power of Suppliers

Apple has a strategic alliance with Windows, which enables Apple users to use the Microsoft Windows
operating system on its machines. Furthermore, the processors are supplied by Intel which makes Apple
rely on them. Apple has to be aware of the policies and regulations for all the outsourced productions
worldwide in the areas they are operating. However, the bargaining power in both cases is low.

Bargaining Power of Customers

Customers have the World Wide Web to share music for free through peer to peer software, which is
regulated differently from country to country. Furthermore, retailers may expect lower prices since the
present economical situation has reduced the purchasing power of customers. However, in the long run,
the rapidly changing needs of consumers for both a diverse range of products and high quality standards
in those products need to be fulfilled in order to succeed in this market. Therefore, the bargaining power
of customers is low.

Threat from Substitutes

Sony and Microsoft have produced consoles known as entertainment systems. These entertainment
systems are capable of playing mp3 files and video files. For example, the Playstation is capable of
playing Blue-ray discs which will not be included in the new MacBook Pro even though it is the new
generation for video files. Moreover, iTunes might lose market shares to satellite radio and online music
stores that are appearing online. The threat from substitutes is high.

IV. 5Financials

Liquidity

The Current Ratio of Apple was 2.46 in 2008, which is up from 2007. The industry average for this ratio
is 1.5. This ratio provides a good example of a financially healthy company, which will have no issues
paying off their short term obligations. Their accounts payable decreased by 6% over the previous year
as a result of lower expenses for the production capacity of the plant, which was started to be build in
2005.

The Cash Ratio has also increased from the previous year. Short-term investments have been used to
fund capital expansion. These are included in the other current assets category. Accounts payable had
been stretched to fund these capital expansions. However, even though accounts payable have
increased from the previous year, the total percentage compared to the total liabilities & stock equity has
decreased from 2007 by 6%.
4
Apple History: http://www.apple-history.nl/h8.html (October 20, 2008)
5
Financials definitions: www.investopdia.com (October 27, 2008)

6
Net Working Capital to Total Assets has increased to follow up with the increasing sales Apple has
realized in the past few years. The net working capital has increased to omit rollover risk.

Assets Management

Inventory: Apple’s increased inventory levels are due to expanded product lines and an increased
demand for Apple products in the market place. The inventory increased from $346 million in 2007 to
$509 million in 2008. Production capacity was increased by serious investment in production facilities
over the past year, which has allowed Apple to meet current market demands for expanding product lines
and products in general. The excellent management strategy of the inventory has paid out, since it has
grown constantly for the period from 2005 to 2008. The Inventory turnover is by 6 at present, up from 5.6
in 2005.
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Accounts Receivable has also been managed very efficiently. Accounts receivable turnover was at
16.6 days in 2007, which is below the industry average. Apple distributes its products through third-party
distributors and resellers and directly to certain education, consumer, and commercial customers. Apple
has a financing arrangement with a third party finance company that provides loan and lease programs
to the company’s direct customers;Apple does not assume any risk or recourse relating to these
arrangements. Generally, no collateral is required from customers; however, there are credit insurance
policies in place for certain customers in Latin America, Europe, Asia, and Australia. There are no
customers who account for more than 10% of the total trade receivables account. The percentage of
Account Receivable to Sales is 6%. (Form 10-Q, p. 21)

Accounts Payable Turnover was at 96.3 days in 2007. Accounts Payable have increased by 210% in
the past three years due to increase production capacity/demand, and stretching of the payables to fund
capital expansion. Due to Apple’s dominance in the industry this behavior does not have serious
repercussions.

Apple’s Cash Conversion Cycle is -41 days. This negative conversion cycle is due to quick Inventory
and Accounts Receivable turnover and is then compounded by the stretching of the Accounts Payable.
This ratio further illustrates the efficiency of Apple’s collection and payment practices.

Long-Term Debt Paying Ability

Debt Ratio has increased from 0.35 in 2005 to 0.47 in 2008 due to a larger increase in total liabilities
compared to the increase in total assets. The increase in total liabilities, which is about 354%, has
significantly derived from company’s stretching of payables strategy, and accrued marketing and
distribution, deferred margin on component sales and other accrued liabilities. The significant increase in
total assets, which about 243% has derived from long-term prepayments.

Debt to Equity is at 88.2% in 2008, which was up from 74.4% over the previous year. This increase is
due to a 31% increase in accounts payable and an increase in total liabilities by 189% to fund capital
expenditures and prepaid expenses.

Profitability

Gross Profit margin has slightly increased from 2006 to 2008 and is at 35.8%.

6
Form 10-Q: http://www.apple.com/investor/ (October 21, 2008)
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Operating Profit margin has increased since 2005 to 2007 and has stayed at a value of 16% due
to product innovation and expansion into the MP3 player market. As a result, of these strategies
Apple has seen sales soar to new levels.
Net Profit margin has also increased, and is currently at 14.9%. This increase is due to great
products, excellent marketing programs and extremely efficient management techniques.
ROA is below ROE in 2008, which means that the Return on Equity is higher than the Return on
Assets. However, ROA increased in the last year from 0.154 to 0.173, whereas ROE decreased
from 0.24 to 0.23 respectively..

Market Performance

7
Earnings per Share have increased constantly over the three years period (2005 – 2008), which
reflects the increasing demand in the market for Apple’s stocks. The increasing demand has reflected
itself in the price changes of the shares in this period. A reason for increasing demand is a stock split
in February 28, 2005 (Stilgar, 2007). The desired outcome of these stock splits is to make the stock
more affordable to attract more investors. Unfortunately the current market situation has brought back
Apple’s share price, which is according to the EPS undervalued.

The Price/Earnings ratio has fluctuated due to changing share prices; however, the ratio has is above
the industry average, which is currently at 23.1. Apple’s Price/Earnings ratio was 43.5 in 2007. Apple’s
P/E ratio might be a sign that investors can expect a higher growth in the future.

The Price per Book Value was at 10.3 in 2007 and is also above the industry average of 4.9. The
constant increasing P/BV can be an indicator that the company’s share price is undervalued.

V. Recommendation

In my opinion, Apple should continue with their “no dividend policy” to invest the retained earnings for
continuous growth. Apple’s management could also take into consideration to buy back shares to get
the attention of investors, since the share price is almost at the 52 week low.

Apple is known as an innovative company that is constantly a step ahead. However,


management’sdecision not to include the Blue-ray drive into their new machines is in my opinion a
mistake. I am positive that they will include it as soon as the price of these drives drop. Furthermore,
management should consider having more compatibility with software from other companies. As I
mentioned before, they have had problems with their stingy patents in the 1990s. If they continue to be
non-compatible with other products (software) and only perfectly compatible with own products, they
may face this problem again.

Apple could use more leverage to finance the expansion of capital assets rather than using their own
assets. However, they have had issues in the past few years to do so because of their shortage in
collateral, which must be present to the banks.

Overall, Apple is a solid company with strong financial statements and high growth opportunities and I
am positive that they will continue growing in the future. I would recommend to strongly buy Apple’s
shares due to all given facts I have provided throughout this report.

7
Apple Insider, http://blogs.indews.com/financial_analysis/apple_financial_analysis.php (October 20, 2008)

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APPENDIX

EXHIBIT 1
Key Ratios for Apple Inc.
2008 2007 2006 2005 2004
Liquidity
Current Ratio 2.462 2.361 2.242 2.956 2.632
Quick Ratio 2.426 2.324 2.200 2.909 2.595
Cash Ratio 1.738 1.655 1.562 2.371 2.039
Net Working Capital 20598 12657 8038 6816 4375
NWC to total Assets 0.521 0.499 0.467 0.590 0.543
Asset Management
Inventory Turnover 6.000 5.800 5.800 5.600 5.300
A/R Turnover N/A 16.600 18.000 16.700 10.800
A/P Turnover N/A 96.300 68.800 59.600 79.000
-41.00 -67.20 -42.70 -32.80
Cash Conversion Cycle 0 0 0 0 -40.300
Fixed Asset Turnover N/A 15.400 18.400 18.300 12.000
Total Asset Turnover 1.596 1.545 1.574 1.421 1.028
NWC Turnover 3.094 3.011 3.013 2.490 1.892
Long-term Debt Paying
Ability
Debt Ratio 0.469 0.427 0.420 0.354 0.369
LT Debt to Total Capitalization 0.175 0.094 0.070 0.075 0.055
Debt/ Equity Ratio 0.882 0.744 0.723 0.547 0.586
Profitability
Gross Margin 0.358 0.353 0.301 0.303 0.291
Operation Profit Margin 0.160 0.160 0.120 0.110 0.050
Net Profit Margin 0.149 0.146 0.103 0.096 0.033
ROA 0.173 0.154 0.130 0.125 0.038
ROE 0.230 0.241 0.199 0.179 0.054
Market
EPS 5.442 3.935 2.239 1.503 0.311
P/E 43.500 30.800 38.800 50.500
P/E (Industry) 23.100
P/BV 10.300 6.500 7.200 4.500
P/BV (Industry) 4.900

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EXHIBIT 2

Apple Inc.
ROE 5-Ways Analysis

Operating Total Assets


Profit
Margin EBT/EBIT NI/EBIT Turnover Debt Ratio ROE
2004 0.05 1.00 0.79 1.03 0.37 0.05
2005 0.11 1.00 0.81 1.42 0.35 0.18
2006 0.12 1.00 0.81 1.57 0.42 0.20
2007 0.16 1.00 0.79 1.54 0.43 0.24
2008 0.16 1.00 0.77 1.60 0.47 0.23

EXHIBIT 3
Income Statement Horizontal Analysis (AAPL)
in millions of
Dollars
2 2 2
2008 007 006 005

1 1 1
Operating Revenue 233% 72% 39% 00%
1 1 1
Cost of Revenue 215% 60% 39% 00%
2 1 1
Gross Operating Profit 275% 01% 38% 00%
1 1 1
Selling/General/Admin Expense 202% 59% 31% 00%
1 1 1
Research & Development 208% 46% 33% 00%
2 1 1
EBITDA 369% 58% 46% 00%
1 1 1
Depreciation & Amortization 264% 77% 26% 00%
2 1 1
EBIT 380% 67% 49% 00%
3 2 1
Interest Income N/A 54% 15% 00%
2 1 1
Other Income, Net -3444% 67% 61% 00%
Total Income Avail For Interest 2 1 1
Expense 380% 76% 55% 00%
Interest Expense
2 1 1
Pre-Tax Income 380% 76% 55% 00%
Income Taxes 429% 3 1 1
10
15% 73% 00%
Minority Interest
Net Income from Continuing 2 1 1
Operations 362% 62% 49% 00%
Net Income from Discontinued
Operations
2 1 1
Net Income from Total Operations 362% 62% 49% 00%
2 1 1
Normalized Income 62% 49% 00%
2 1 1
Total Net Income 362% 62% 49% 00%

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EXHIBIT 4
Balance Sheet Horizontal Analysis (AAPL)
in millions of
Assets Dollars

2008 2007 2006 2005


Cash and Equivalents 340% 268% 183% 100%
Marketable Securities 264% 126% 78% 100%
Receivables 271% 450% 140% 100%
Inventories 308% 210% 164% 100%
Other Current Assets 898% 154% 350% 100%
Total Current Assets 337% 213% 141% 100%
Gross Fixed Assets 166% 192% 140% 100%
Accumulated Depreciation N/A 152% 120% 100%
Net Fixed Assets 300% 224% 157% 100%
Intangibles 297% 398% 167% 100%
Other Non-Current Assets 1248% 678% 785% 100%
Total Non-Current Assets 390% 271% 216% 100%
Total Assets 343% 219% 149% 100%

Liabilities
Accounts Payable 310% 279% 191% 100%
Short Term Debt
Other Current Liabilities N/A 264% 182% 100%
Total Current Liabilities 404% 267% 186% 100%
Long Term Debt N/A
Deferred Income Tax N/A 103% 63% 100%
Other Non-Current Liabilities
Minority Interest N/A
Total Non-Current
Liabilities 740% 252% 125% 100%
Total Liabilities 454% 265% 177% 100%
Preferred Stock Equity
Common Stock Equity 282% 195% 134% 100%
Total Equity 282% 195% 134% 100%
Total Liabilities & Stock
Equity 343% 219% 149% 100%

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EXHIBIT 5

Income statement Vertical Analysis (AAPL)


in millions of
Dollars
2 2 2
2008 007 006 005

1 1 1
Operating Revenue 100% 00% 00% 00%
Adjustments to Revenue 0% 0% 0% 0%
Cost of Revenue 64% 65% 70% 70%
Gross Operating Profit 36% 35% 30% 30%
Selling/General/Admin Expense 12% 12% 13% 13%
Research & Development 3% 3% 4% 4%
EBITDA 21% 20% 14% 13%
Depreciation & Amortization 1% 1% 1% 1%
EBIT 19% 18% 13% 12%
Interest Income N/A 3% 2% 1%
Other Income, Net 2% 0% 0% 0%
Total Income Avail For Interest
Expense 21% 21% 15% 13%
Interest Expense 0% 0% 0% 0%
Pre-Tax Income 21% 21% 15% 13%
Income Taxes 6% 6% 4% 3%
Minority Interest 0% 0% 0% 0%
Net Income from Continuing
Operations 15% 15% 10% 10%
Net Income from Discontinued
Operations 0% 0% 0% 0%
Net Income from Total Operations 15% 15% 10% 10%
Normalized Income N/A 15% 10% 10%
Extraordinary Income 0% 0% 0% 0%
Special Income/Charges N/A 0% 0% 0%
Income from Cum. Effect of Acct Change 0% 0% 0% 0%
Income from Tax Loss Carryforward 0% 0% 0% 0%
Other Gains 0% 0% 0% 0%
Total Net Income 15% 15% 10% 10%

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EXHIBIT 6
Balance Sheet Vertical Analysis (AAPL)

Assets in millions of Dollars

2008 2007 2006 2005


Cash and Equivalents 30% 37% 37% 30%
Marketable Securities 32% 24% 22% 41%
Receivables 6% 16% 7% 8%
Inventories 1% 1% 2% 1%
Other Current Assets 15% 4% 13% 6%
Total Current Assets 88% 87% 84% 89%
Gross Fixed Assets 6% 11% 12% 13%
Accumulated Depreciation N/A 4% 5% 6%
Net Fixed Assets 6% 7% 7% 7%
Intangibles 1% 2% 1% 1%
Other Non-Current Assets 5% 4% 7% 1%
Total Non-Current Assets 12% 13% 16% 11%
1 1 1
Total Assets 100% 00% 00% 00%

Liabilities
Accounts Payable 14% 20% 20% 15%
Short Term Debt N/A 0% 0% 0%
Other Current Liabilities N/A 7% 7% 5%
Total Current Liabilities 36% 37% 38% 30%
Long Term Debt N/A 0% 0% 0%
Deferred Income Tax N/A 2% 2% 5%
Other Non-Current Liabilities 11% 4% 2% 0%
Minority Interest N/A 0% 0% 0%
Total Non-Current Liabilities 11% 6% 4% 5%
Total Liabilities 47% 43% 42% 35%
Preferred Stock Equity N/A 0% 0% 0%
Common Stock Equity 53% 57% 58% 65%
Total Equity 53% 57% 58% 65%
Total Liabilities & Stock 1 1 1
Equity 100% 00% 00% 00%

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EXHIBIT 7

DIRECT
COMPETITOR
COMPARISON

AAPL DELL HPQ MSFT Industry

Market Cap: 83.63B 26.21B 100.44B 225.70B 25.56B

Employees: 21,600 82,700 172,000 91,000 21.60K

Qtrly Rev Growth


(yoy): 38.00% 11.20% 10.50% 18.40% 6.50%

Revenue (ttm): 30.80B 64.15B 113.05B 60.42B 30.80B

Gross Margin (ttm): 34.08% 18.16% 24.53% 80.80% 27.95%

Net Income (ttm): 4.60B 2.85B 8.38B 17.68B N/A

EPS (ttm): 5.115 1.338 3.228 1.867 1.34

P/E (ttm): 19.25 9.99 12.7 13.24 19.04

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Yahoo Finance: http://ca.finance.yahoo.com/q/co?s=AAPL (October 21, 2008)

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References:

Apple.com, (2008). Retrieved October 21, 2008, from http://www.apple.com/

Apple Inc. (2008). Form 10-Q. Retrieved October 21, 2008,


from http://www.apple.com/investor/

Apple Inc. (2007). Annual report. Retrieved October 21, 2008, from
http://biz.yahoo.com/e/071115/aapl10-k.html

Einbinder, Liz (2004). iTunes Music Store Begins Countdown to 100 Million Songs.
Retrieved October 28, 2008, Web site:
http://www.apple.com/pr/library/2004/jul/01itunes.html

Investopedia (2008). Investopedia. Retrieved October 27, 2008, from Investopedia


Web site: http://investopedia.com

Max headroom. (cover story). (2008, February 21). People Management, Retrieved
October 21, 2008, from Business Source Complete database.

Retrieved October 28, 2008, from The History of Apple Computers Web site:
http://web.bryant.edu/~ehu/h364proj/fall_97/hill/happle.html

Stilgar, (2007, January 18). Apple Financial Analysis. Retrieved October 28, 2008,
from Indews Broadcast Web site:
http://blogs.indews.com/financial_analysis/apple_financial_analysis.php

Yahoo, (2008). Yahoo Finance. Retrieved October 21, 2008, from Yahoo! Web site:
http://finance.yahoo.com/q/co?s=GPS

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