Apple Inc.

TEAM SIERRA
AHN NGYUEN BRENT STOCK
TAIMUR KHAN ETHEN WOODLEE

Where Did Apple Begin?

Founded 1976

Cupertino, California

By Steve Jobs and Steve Wozniak

College dropouts and self-taught electrical engineers

Started the company with $1,300

Sales exceeded $1M by June 1977

More About Apple!

1980 Apple converted to public ownership
1982 First personal computer company to reach

$1B in annual sales!

Macintosh PC as backbone product

1985 Management shakeup causes departure of Jobs

and other executives

11 years later Jobs returns and introduces the iMac!

More About Apple! (contd)

2001 iPod is released; Apple opens first retail store in

Virginia!
Organization Skyrockets!
6 years later the first smartphone is introduced!

iPhone January 2007

Propels Apple to amazing heights Allowing for

market domination

Where is Apple Now?

More Cash Than US Government Reserves!

Apple $119.2 Billion > US Reserves $73.8 Billion

Sales Contributions:

54.2% iPhone
12.5% iPad
11.2% Macintosh
22.1% Other

(iPod, Apple TV, iOS)

Supply Chain

Apple Suppliers

Supply Chain

Fiscal Data
Net Sales 2007 2011 (Million USD)

Net Sales
Net
Income

2007

2008

2009

2010

2011

$24,578

$37,491

$42,905

$65,225

$108,249

$3,495

$6,119

$8,235

$14,013

$25,922

Apple total sales rose 77.3% within 5 fiscal years

Fiscal Data (Continued)

Net income also increased 640.5% in 5 years

Fiscal Data (Continued)

Unit Sales by Products (1000s)
2010- 2011
Unit Sales by Products

2011

Change

2010

Total Mac unit sales

16,735

22%

13,662

iPod unit sales

42,620

(15%)

50,312

Iphone unit sold

72,293

81%

39,989

Ipad unit sold

32,394

334%

7,458

Net and Unit Sales increased due to Apples effort to expand products in
new countries & carriers

Jobs and Employees

Apple supports domestic and global economies!
Number of jobs supported by Apple has grown

rapidly since 2002!

Less than 10,000 US employees in 2002

More than 47,000 US employees currently!

Apple has supported more than 500K jobs World

Wide!

Economic Impact US Wide

307,250 US jobs supported by Apple
50,250 jobs at Apple
Created 5,000 US jobs in 2012!
Created 21,000 US jobs since 2008!
26,000 Domestic Retail Employees!
250 US stores in 44 states

Economic Impact on DFW

3 high performing retail stores.

Amazing product placement in 3rd party stores

Bestbuy, Frys, AT&T, Verizon, even Walmart!

Over 100 employees per retail store

Millions in sales taxed at a rate of $.0825

Direct contributor to local economic stability

Does This Make Apple a Sure

and Safe Bet?

Decision
Team Sierra chooses not to invest!

Wait!...... Why?!
Fluctuation in price of stock!
Expensive shares leaving less room to make dough!

Buy low sell high!

Not buy high and sell higher!!

New Development of Heavy Competition!

Uncertainty of where Apple will be in 5 years!

Share Analysis
$629.71 per share 2 months ago!
Declined over the last 2 months consecutively!
Currently trading at $541.76 and falling!

Strong Development of Competition!

Products

New Competitor Development

Macintosh and iMac

IBM
Dell
Sony
Acer
HP

iPod Series

Samsung
SanDisk
Creative
Amazon.com
Internet Radio: Pandora & Spotify

iPhone Series

Samsung smartphones
HTC
Lumina
Google phones (Nexus)
Motorola

iPad

Amazon Kindle
Nexus Tab
Samsung Tablets

Operating Systems

Microsoft Windows 8
Googles Android OS

Other Factors of Doubt and Uncertainty

Creative genius Steve Jobs deceased

Founded and Progressed the organization to current heights.

Growing consumer interest in Android products

Samsung III
Android tablets Samsung Nexus

Additional Uncertainties!
Overestimated Profits by $8.2 Billion last quarter

alone!
Gradual loss of market share to competitors.

Includes threats to PC, Tablet, iOS products,

How long will people stick with iPhones before they

want a change?

Backbone product challenged by new and promising

competitors.

Too Many Uncertainties for our Parents!

We love our parents too much!
This is too high of a risk with a lot of uncertainties.
Organizations long term future is unpredictable
We expect uncertainties to arise

So Where Should We Invest?

Organizations with lower share prices which have

more room for growth.

Reevaluate alternative investments for our parents

retirement.

The End
Q&A?

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