Aapl Valuation Essay

8568 Words Mar 14th, 2014 35 Pages
FBE-529 FINANCIAL ANALYSIS AND VALUATION

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

4/24/2012

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
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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
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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

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