Apple Inc (AAPL) was formerly known as Apple Computer, Inc. The company was founded on 1 April, 1976 by Steve Jobs and Steve Wozniak. The company designs, develops and sells computer software, personal computer and consumer electronics. It is well known for its Mac line of computers, iPod music player, iPhone smartphone and iPad tablet computer. The day Steve Jobs introduced the iPhone; it removed the word “computer” from its name to indicate its shift towards consumer electronics. The company’s primary customers include consumers, Server Message Block, enterprise, education and government market. The company serves its customers from variety of direct and indirect channels such as,online stores, retail stores, wholesalers, retailers, third-party cellular network carriers, and direct sales force and value-added resellers. As of 19 October 2012, Apple Inc has 27,696 shareholders of record.

Apple has released its Annual Report for 2012 for the fiscal year ended September 2012. It revealed that the company has provided more emphasis on its R&D work as it has added about 12,000 full time employees. It has planned to open minimum 35 new retail stores and has sanctioned $9.15 billion capital expenditure on product tooling and manufacturing process equipment. This figure is over and above the amount it spend on $9.5 billion cost on the same account previous year. The company has made a significant change on the top management; the retail chief and mobile software leader Scott Forstall has been shifted as a Special Advisor to the CEO Tim Cook. You can also check the Apple Annual Report 2011 here

Apple Recently Reports Fourth Quarter Results (Q4/2013)

Apple has announced its Fourth Quarter Result (Q4/FY13) on October 28, 2013. The Board has decided to declare a cash dividend of $3.05 per share which will be announced on November 14, 2013.  The company is happy with the marketing results on new iPhone 5c and iPhone 5s, iOS 7. They are optimistic about other new releases on the row: iPad mini with Retina Display, new MacBook Pros, OS X Mavericks, the incredibly thin and light iPad Air, the radical new Mac Pro, and the next generation iWork and iLife apps for OS X and iOS.

The company has generated a cash flow of $9.9 billion from operations and has returned $7.8 billion to the shareholders by means of dividend and share purchases during this quarter.

September 28, 2013

September 28, 2012

Total Revenue

35.96 billion

37.5 billion

Net Profit

7.5 billion

8.2 billion

Diluted Normalized EPS

$8.26

$8.67

Gross Margin

37%

40%

Number of iPhones sold

33.8 million

26.9 million

Number of iPads sold

14.1 million

14.0 million

Number of Macs sold

4.6 million

4.9 million

The company’s claim suggests that Macs, the personal computer designed by Apple, is one of the best in the world along with OS X, iWork, iLife and professional software. It is also the pioneer in digital music revolution with iPod and iTunes online stores. Apple has redefined the future of mobile phone with innovative iPhone and App Store

 

Annual Reports with Quarter End Results (Last Five Quarters 2012-13)

Apple has released its Annual Report for 2012 for the fiscal year ended September 2012. It revealed that the company has provided more emphasis on its R&D work as it has added about 12,000 full time employees. It has planned to open minimum 35 new retail stores and has sanctioned $9.15 billion capital expenditure on product tooling and manufacturing process equipment.

This figure is over and above the amount it spend on $9.5 billion cost on the same account previous year. The company has made a significant change on the top management; the retail chief and mobile software leader Scott Forstall has been shifted as a Special Advisor to the CEO Tim Cook.

R & D: The total R & D expenses were $1.8 billion, $2.4 billion and $3.4 billion respectively in 2010, 2011, and 2012 respectively. This expense is spent on a percentage of sales. It was 8%, 7%, and 6% on 2010, 2011 and 2012 respectively.

Employees: AS per the year-end report on 29 September 2012, the company had around 72,800 (the figure was 60,400 in previous year) full time equivalent employees. It further employed additional 3,300 (2,900 in 2011) full time equivalent temporary employees and contractors. Out of these around 42,400 employees were engaged in the retail segment of the company.

Patents: The Company understands the importance and value of owning patents, copyrights, service marks and trademarks but primary relies on technical competence and innovative skill with marketing abilities of its work force. Many of the company’s products were designed by the use of third party’s intellectual property. It is often may be necessary in future to renew or seek licenses relating to various features of its products and business methods.

Cash: The Company had $121.3 billion in cash as on 30 September 2012. This figure includes the cash equivalents and marketable securities. The amount is more by $39.7 billion or 49% increase over the figure of September 2011.

U.S & International Sales: During the fiscal year 2012 the international sales accounted 61% of the total net sales. The balance 39% was realized from domestic or US market.

Component Supply: The Company depends on some specific custom component and procures from single source. When some new technology is used by some product or component, initial capacity constraints may exist until it is resolved and matured.

Manufacturing partners: The Company has come outsourcing partners that are primary located in Asia. Although it works closely with these outsourcing partners, operating results may hamper if its outsourcing partners fail to meet their production commitments. The company on an average maintains 150 days reordering level.

Customer dependency: The Company has no single customer that has accounted for more than 10% sale in two preceding fiscal years.

Gross margin: The Company is facing shortage of supplies and price increase, may experience decrease in gross profit margin in future. If the dollar strengthens in future Apple’s profit may come down. The gross profit margin may come down to 36% in 2013 as compared to 43.9% and 40.5% in 2012 and 2011 respectively.

In Millions of USD (except for per share items Quarter Ending June 2012 Quarter Ending September 2012 Quarter Ending December 2012 Quarter Ending March 2013 Quarter Ending June 2013

Revenue

35,023.00

35,966

54,512.00

43,603.00

35,323.00

Other Revenue, Total

-

-

-

-

-

Total Revenue

35,023.00

35,966.00

54,512.00

43,603.00

35,323.00

Cost of Revenue, Total

20,029.00

21,565.00

33,452.00

27,254.00

22,299.00

Gross Profit

14,994.00

14,401.00

21,060.00

16,349.00

13,024.00

Selling/General/Admin. Expenses, Total

2,545.00

2,551.00

2,840.00

2,911.00

2,890.00

Research & Development

876.00

906.00

1,010.00

880.00

933.00

Depreciation/Amortization

-

-

-

-

-

Interest Expense(Income) – Net Operating

-

-

-

-

-

Unusual Expense (Income)

-

-

-

-

-

Other Operating Expenses, Total

-

-

-

-

-

Total Operating Expense

23,450.00

25,022.00

37,302.00

31,045.00

26,122

Operating Income

11,573.00

10,944.00

17,210.00

12,558.00

9,201.00

Interest Income(Expense), Net Non-Operating

-

-

-

-

-

Gain (Loss) on Sale of Assets

-

-

-

-

-

Other, Net

288.00

(-51.00)

41.00

-

(-98.00)

Income Before Tax

11,861.00

10,893.00

17,672.00

12,905.00

9,435.00

Income After Tax

8,824.00

8,223.00

13,078.00

9,547.00

6,900.00

Minority Interest

-

-

-

-

-

Equity In Affiliates

-

-

-

-

-

Net Income Before Extra. Items

8,824.00

8,223.00

13,078.00

9,547.00

6,900.00

Accounting Change

-

-

-

-

-

Discontinued Operations

-

-

-

-

-

Extraordinary Item

-

-

-

-

-

Net Income

8,824.00

8,223.00

13,078.00

9,547.00

6,900.00

Preferred Dividends

-

-

-

-

-

Income Available to Common Excl. Extra Items

8,824.00

8,223.00

13,078.00

9,547.00

6,900.00

Income Available to Common Incl. Extra Items

8,824.00

8,223.00

13,078.00

9,547.00

6,900.00

Basic Weighted Average Shares

-

-

-

-

-

Basic EPS Excluding Extraordinary Items

-

-

-

-

-

Basic EPS Including Extraordinary Items

-

-

-

-

-

Dilution Adjustment

-

-

-

-

0.00

Diluted Weighted Average Shares

947.06

948.19

947.22

946.03

924.26

Diluted EPS Excluding Extraordinary Items

9.32

8.67

13.81

10.09

7.47

Diluted EPS Including Extraordinary Items

-

-

-

-

-

Dividends per Share – Common Stock Primary Issue

0.00

2.65

2.65

2.65

3.05

Diluted Normalized EPS

9.32

8.67

13.81

10.09

7.47


Quarters include the results from operations of 13 weeks

Quarters include the results from operations of 13 weeks

Annual Sales, Annual Revenue, Annual Profits of Apple Inc

The information given here is for last five fiscal periods with 30 September year end.

2008

2009

2010

2011

  2012

Net sales

$37,491

$42,905

$65,225

$108,249

$156,508

Net income

$6,119

$8,235

$14,013

$25,922

$41,733

Earnings per share:

Basic

$6.94

$9.22

$15.41

$28.05

$44.65

Diluted

$6.78

$9.08

$15.15

$27.68

$44.15

Cash dividends declared per share (a)

$0

$0

$0

$0

$2.65

Shares used in computing earnings per share:

Basic

881,592

893,016

909,461

924,258

934,818

Diluted

902,139

907,005

924,712

936,645

945,355

Total cash, cash equivalents and marketable securities

$24,490

$33,992

$51,011

$81,570

$121,521

Total assets

$36,171

$47,501

$75,183

$116,371

$176,064

Total long-term obligations (b)

$1,745

$3,502

$5,531

$10,100

$16,664

Total liabilities

$13,874

$15,861

$27,392

$39,756

$57,854

Total shareholders’ equity

$22,297

$31,640

$47,791

$76,615

$118,210

Note: Amounts mentioned in the above table are in millions, except number of shares, which are reflected in thousands and per share amounts.