Apple 5 pages

Apple 5 pages - Financial Standings When looking into the...

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Financial Standings When looking into the past of Apple we can see amazing growth over the last 5 years. Stock prices began 5 years ago at below $10 a share and have traded for as much as $202 per share in late December 2007. The Return on investment has seen astounding growth. Product sales have continually increased, by as much as 600 percent a year in some cases. Revenue has grown infinitely large. Take for example the rate of return; over the last five years return has grown from 0.9 percent in 2003 to 9.5 percent in 2005 to 14.6 percent at the end of fiscal year 2007. Their PC market share has grown as well. Today Apple has a 6.6 percent share of the US PC market as well as a little less than 4 percent in the global PC market as of the end of quarter one 2008. 1 These numbers are up considerably compared to Apple’s market share five years ago in quarter three of 2003. In quarter three of 2003 Apple posted a US market share of 3.2 percent and a global market share of 1.8 percent. 2 This growth can be attributed to their sleek product design and innovative electronics as well as the recovery of Apple founder and current CEO, Steve Jobs. As for today, so far 2008 has been another year of repeated growth for Apple Inc. First quarter of fiscal year 2008 ended on Dec. 29 and posted strong results. Total revenue amounted to 9.6 billion and of that Apple saw 1.58 billion in profit, these totals up from 7.1 billion in the same quarter a year ago and up from a total net 5 years ago of 6.2 billion in the entire year of 2003. 3 Gross margin in the same quarter a year ago was 31.2 percent while at the end of this quarter was 34.7 percent. Of the 9.6 billion, 45 percent were grossed from international sales, up 4 percent from the end of the fiscal year 2007 financial report. The Mac and the iPod lead the 1
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pack as they have in recent years. 2,319,000 Mac computers were sold during the first quarter 2008 while iPod sales totaled over 22 million units and iPhone sales grossed 2,315,000 units sold. Despite leading the pack, iPod sales growth have waned. Although they seem strong to the unsuspecting eye they are not nearly as strong as they have been in past years, but with the help of the Mac and Apple’s iPhone the company is able to report a strong profit. The Mac has been the main focus so far in fiscal year 2008, with the iPhone being a product that we will continue to see incremental increases in as consumer confidence rises and phones become more affordable. Apple looks forward to continued growth as they slowly penetrate the cell phone market with their sleek and user friendly iPhones. As for the second quarter in 2008 Apple has similar results with the Mac showing great return. Net profit was 1.05 billion, with revenue of 7.51 billion. Sounds very strong but the gross margin was down from 35.1 percent in the prior year’s quarter to 32.9 percent in this quarter. Mac sales were very high as the company gained ground in the international market share of PCs, totaling 2,289,000 units sold, almost matching the sales during the holiday season. In the second quarter iPods experienced a very small growth of one percent unit growth and eight
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This note was uploaded on 09/08/2010 for the course BUS 160 at San Jose State.

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Apple 5 pages - Financial Standings When looking into the...

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