Apple Inc. company overview DESIGNS MANUFACTURES MARKETS
Slide 5
Products and Services Macintosh Mac computers iPhone iPad iPod
Apple TV Xserve A portfolio of consumer/professional software
applications Mac OS X and iOS operating system Third-party digital
content and applications through the iTunes Store Variety of
accessory, service, and support offerings
Slide 6
Business Channels Retail Stores Online Stores Direct sales
force and third-party cellular network carriers, wholesalers,
retailers, and value-added resellers
Slide 7
Business Strategy Apple Inc is committed to bringing the best
user experience to its customers through its innovative hardware,
software, peripherals, services, and Internet offerings
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Financial Analysis
Slide 9
Slide 10
Mac Unit Sales by Operating Segment: 2010Change2009Change2008
Americas Mac unit sales $4,97621%$4,1204%$3,980 Europe Mac unit
sales 3,85936%2,84013%2,519 Japan Mac unit sales 48122%3952%389
Asia-Pacific Mac unit sales 1,50062%92617%793 Retail Mac unit sales
2,84635%2,1154%2,034 Total Mac unit sales
$13,66231%$10,3967%$9,715
Slide 11
Financial Analysis Net Sales by
Product:2010Change2009Change2008 Desktops
(a)$6,20143%$4,324(23)%$5,622 Portables (b)11,27818%9,5359%8,732
Total Mac net sales17,47926%13,859(3)%14,354
iPod8,2742%8,091(12)%9,153 Other music related products and
services (c)4,94823%4,03621%3,340 iPhone and related products and
services (d)25,17993%13,03393%6,742 iPad and related products and
services (e)4,958NM0 0 Peripherals and other hardware
(f)1,81423%1,475(13)1,694 Software, services, and other sales
(g)2,5737%2,4119%2,208 Total net
sales$65,22552%$42,90514%$37,491
Slide 12
Financial Analysis Unit Sales by
Product:2010Change2009Change2008 Desktops
(a)$4,6277%$3,182(14)%$3,712 Portables (b)9,03525%7,21420%6,003
Total Mac unit sales13,66231%10,3967%9,715 Net sales per Mac unit
sold (h)$1,279(4)$1,333(10)%$1,478 iPod unit
sales50,312(7)%54,132(1)%54,828 Net sales per iPod unit sold
(h)$16410%$149(11)%$167 iPhone units sold39,98993%20,73178%11,627
iPad units sold7,458NM0 0
Slide 13
Gross Margin 201020092008 Net Sales$65,225$42,905$37,491 Cost
of Sales 39,541 25,683 24,294 Gross Margin$25,684$17,222$13,197
Gross Margin Percentage 39.4% 40.1% 35.2%
Slide 14
Operating Expenses 201020092008 Research &
development$1,782$1,333$1,109 Percentage of net sales 2.7% 3.1%
3.0% Selling, general, & administrative$5,517$4,149$3,761
Percentage of net sales 8.5% 9.7% 10.0%
Slide 15
Other Income and Expenses 201020092008 Interest
Income$311$407$653 Other income (expense), net (156) (81) (33)
Total other income & expense$155$326$620
Slide 16
Apple Inc History
Slide 17
Apple Inc. History Formerly Apple Computer Inc Established in
Cupertino, California on April 1, 1976 As of September 2007, the
company operates about 200 retail stores in five countries and an
online store where hardware and software products are sold.
Slide 18
1976 to 1980: The early years Apple was founded on April 1,
1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne (and later
incorporated January 3, 1977 without Wayne, who sold his share of
the company back to Jobs and Wozniak) to sell the Apple I personal
computer kit. The Apple I, Apple's first product. Sold as an
assembled circuit board, it lacked basic features such as a
keyboard, monitor, and case. The owner of this unit added a
keyboard and a wooden case. The Apple II was introduced on April
16, 1977 at the first West Coast Computer Faire. It differed from
its major rivals, the TRS-80 and Commodore PET, because it came
with color graphics and an open architecture. While early models
used ordinary cassette tapes as storage devices, this was quickly
superseded by the introduction of a 5 1/4 inch floppy disk drive
and interface, the Disk II.
Slide 19
1981 to 1989: Lisa and Macintosh The rebel from Apple's 1984
ad, set in a dystopian future modeled after the Orwell novel
Nineteen Eighty-Four, set the tone for the introduction of the
Macintosh The Macintosh 128K was the first Macintosh computer.
Slide 20
1989 to 1991: The Golden Age The Macintosh Portable was Apple's
first "portable" Macintosh computer, released in 1989. Apple
introduced the PowerBook in 1991, which established the modern form
and ergonomic layout of the laptop computer. In 1991, Apple
introduced System 7, a major upgrade to the operating system which
added color to the interface, and introduced a number of new
networking capabilities. It would remain the architectural basis
for Mac OS until 2001.
Slide 21
1994 to 1997: Attempts at reinvention The Apple Newton was
Apple's first foray into the PDA markets, as well as one of the
first in the industry. In 1994 Apple allied with long-time
competitor IBM and CPU maker Motorola in the so-called AIM
alliance. Throughout the mid to late 1990s, Apple tried to improve
its operating system's multitasking and memory management. In 1997,
Apple would entered into a partnership with Microsoft to release
new versions of Microsoft Office for the Macintosh as well as a
US$150 million investment in non-voting Apple stock. On November
10, 1997, Apple introduced the Apple Store, an online retail store
based upon the WebObjects application server the company had
acquired in its purchase of NeXT.
Slide 22
1998 to 2005: New beginnings On August 15, 1998, Apple
introduced a new all-in-one Mac computer reminiscent of the
original Macintosh 128K: the iMac. In 1998, Apple announced the
purchase of Macromedia's Final Cut software, signaling its
expansion into the digital video editing market. In 2002 Apple
purchased Nothing Real for their advanced digital compositing
application Shake, as well as Emagic for their music productivity
application Logic. which led to the development of their
consumer-level GarageBand application. On May 19, 2001, Apple
opened its first official Apple Retail Stores in Virginia and
California, and has since continued to open more stores in the
United States and other countries. In 2003, Apple's iTunes Store
was introduced, offering online music downloads for US 99 a song
and integration with the iPod.