Aapl Valuation Essay

8568 Words Mar 14th, 2014 35 Pages

Final Valuation Project
Apple Inc. (AAPL)
Jeffrey Bullock Zefu Chen Xiangyu Shi Xuezhou Xiao


Company Analysis Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include the iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a variety of accessory, service and support offerings. It also sells and delivers digital content
…show more content…
The Company manages its business primarily on a geographic basis which includes Americas, Europe, Japan, Asia-Pacific and Retail. The U.S. represents the Company’s largest geographic market. Approximately 39% of the Company’s net sales in 2011 came from sales to customers inside the U.S. Table 1 shows the net sales by operating segment and we analyze the situations comparing 2011 and 2010. Table 1 – Net Sales by Operating Segment

During 2011, net sales in the Americas segment increased $13.8 billion or 56% compared to 2010.The Americas segment represented approximately 35% and 37% of the Company’s total net sales for 2011 and 2010, respectively. For 2011, net sales in the Europe segment increased $9.1 billion or 49%, compared to 2010. The Europe segment represented 26% and 29% of total net sales for 2011 and
2|P a g e

2010. This is primarily due to the growth in iPhone revenue from carrier expansion and strong demand for iPhone 4 and sales of iPad and Macs. Higher sales of third-party digital content and applications from the iTunes Store and App Store also drove an increase in sales during 2011. Japan’s net sales increased $1.5 billion or 37% during 2011 compared to 2010. The key contributors to Japan’s net sales growth were increased iPhone revenue, strong sales of iPad and Macs, and strength in the Japanese Yen

Related Documents