Company Report On Apple Inc.

Company Report

Apple Computer Inc.

Halil Akdogu October 28, 2008

TABLE OF CONTENT I. History.....................................................................................................................1 II. SWOT Analysis.........................................................................................................1 III. Porter’s Analysis........................................................................................................3 IV. Financials.................................................................................................................4 Liquidity........................................................................................................................4 Assets Management.......................................................................................................5 Long-Term Debt Paying Ability..........................................................................................5 Profitability....................................................................................................................6 Market Performance.......................................................................................................6 V. Recommendation......................................................................................................6 APPENDIX....................................................................................................................8 EXHIBIT 1..................................................................................................................8 EXHIBIT 2..................................................................................................................9 EXHIBIT 3..................................................................................................................9 EXHIBIT 4................................................................................................................10 EXHIBIT 5................................................................................................................11 EXHIBIT 6................................................................................................................12

I.

History

Steven Wozniak and Steven Jobs are the creators of Apple Computer. In 1976, the Apple I was designed by Steven Wozniak. Steven Jobs, his friend and computer club partner, persuaded Wozniak that this was an opportunity to make money and therefore to sell these computers. On April 1, 1976, Apple Computer was created by Wozniak and Jobs. A local computer dealer agreed to sell the units and within 10 months, 200 units of the Apple 1 had been sold. Realizing a market gap, Apple began to increase research & development to soon introduce the Apple II. The Apple II, included color graphics and came in its own plastic casing. The first real computer to come pre-assembled, therefore, making it more attractive to a larger group of consumers. After the introduction of the Apple II, the orders for Apples increased dramatically. Jobs and Wozniak continued building systems out of their garage for two years until they moved to their current Apple headquarters in Cupertino, California. In the 1990’s they fell behind their competitors due to stingy patents on their computers, which was not tolerated by customers. This step enabled Microsoft to become the market leader in the industry. Additionally, Apple had to many backorders in 1995 which was not a good promotion for the brand name. However, NEXTstep was purchased to regain market share followed by a 5-year patent-cross license with Microsoft in 1997 for their Microsoft Office package. (“The History of Apple Computers,” 2008) 1

Today Apple designs, manufactures, and markets personal computers and related software, services, peripherals, and networking solutions. The company also designs, develops, and markets a line of portable digital music players, more commonly known as the iPod and the iPhone. The iPod was the most popular item since it has been available. In 2007, Apple has announced that it has sold its 100 millionth ipod, and other related music products and accessories have also seen an immense increase over the same period. The portable and desktop computers are also industry leaders and both have had strong sales growth over the past fouryears. Apple sells its products worldwide through its online stores, retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. 2 “Apple believes that the personal computer has become the center of an evolving digital lifestyle by integrating and enhancing the utility of advanced digital services and electronic devices” (Form 10-K for Apple Inc., 2007, p.1). They have managed to turn into a “cool” company that is attracting increasingly new clients with their products and their innovative designs. Apple is currently traded on the New York Stock exchange. Apple is valued at $83.63 billion and reported net sales at the end of 2007 of $24,006 million, which resulted in a net income of $3,496 million. From 2005 to 2007, Apple’s total revenue went up by 72%, whereas the total net income increase by 162%. (“Google Finance,” 2008) 3

II. SWOT Analysis The primary objective of a corporation is to align the interest of management and shareholders, ensuring that the company’s business and affairs are managed in accordance to its stated goals and objectives. The way in which this objective will be reached is through the supervision of a highly efficient Board of directors and a knowledgeable management team that is aware of the company’s strengths, weaknesses, opportunities and threats. These essential points have to be managed well to stay competitive. Each situation is more closely discussed in the following paragraphs. Strengths Apple has proven itself in the industry throughout the past 30 years and is known, especially in the past 5 years, as an innovative company with great perspectives. Their experience in the hardware sector 1

History of Apple Computers, http://web.bryant.edu/~ehu/h364proj/fall_97/hill/happle.html (October 18, 2008) 2 Form 10-K for Apple Inc, http://biz.yahoo.com/e/071115/aapl10-k.html (October 18, 2008) 3 Google Finance, http://finance.google.com/finance?q=aapl (October 28, 2008)

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enabled them to produce high quality products which created loyal customers. These loyal customers make use of Apple’s product diversification, which are highly compatible with each other. As stated by Max McKeown, “An organization that can deliberately, methodically, even joyously renew itself has a “killer” culture – one that delivers that much sought-after competitive advantage. Simply by shortening the cycles of renewal or innovation through experimentation, such a culture will naturally replace its own products and services by finding better alternatives,” (People Management, 2008, p.29). Steve Jobs played an important role in making this business philosophy to be a vital component of the corporate culture. However, a strong corporate culture is only the first step of many. Strong advertisement strategies have followed to bring these new innovations to the customer. An additional strength is their feeling for outstanding designs which enabled them to distinguish its products from competitor’s products. As a result of their increasing research & development, it appears that Apple has been a step ahead of their competitors over the past few years. Apple has created software that allows users to work on two operating systems simultaneously; this step was taken with the hope to gain more market share in the hardware sector. These operating systems are OS X and their major competitors Microsoft Windows. Weaknesses One of Apple’s weaknesses is the high price that is being charged for its products and services. In comparison to other companies, Apple is charging approximately $3000 (depending on peripheral choice) whereas other competitors are charging a significant dollar amount less. Especially, students are more reluctant to pay more for similar products. However, despite these high prices, Apple has done extremely well for itself and thus is possibly one of the main reasons why they do not lower their pricing mentality. Additionally, Apple has had issues with faulty batteries in their iPods, however, although expectations for Apple products are high, customers seem to be very forgiving in terms of the faulty batteries. Mac computers are known to be non-compatible with certain types of software that are available widely for Microsoft Windows. This might be a reason for many customers to use competitor products (mainly Microsoft Windows). Additionally, Apple’s management has decided not to include the new Blue-ray Technology in their new Mac Books. Analysts believe that the main reason for this decision is the high price of these drives. This line of reasoning is doubtful since it is said that Blue-ray is the new generation for video files after the DVD format. Apple has no Dividend Policy, which means that there are no dividends paid out and also no Dividend Reinvestment Program (DRIP). This may scare away investors that are looking for a fixed income. However, Apple has been growing aggressively in the past years and therefore has the need for cash/cash equivalents for further growth. The last dividend payout Apple has made was in December 1995. Opportunities In recent times, companies have to be aware of the opportunities available in the market. Especially, the music sector has been very profitable in the past few years. Apple has created ITunes and an online music store to compete in the MP3 sector. This trend will no doubt increase, since the availability to the World Wide Web grows constantly. For this reason, Apple should focus on legal downloading for an affordable price and include radio podcast downloads at any time of the day. Apple’s heavy advertising strategy over the past few years brought high costs, which were passed on to the consumer. However, since Apple has established itself in the North American market, they might consider dropping the prices of their product lines to be more competitive with competitor’s pricing strategies. Threats 4

In every industry the main threat is competition, which regulates the supply amount of each corporation to the demanding customer. Since Apple is active in three major industries, which are the hardware sector (Computers), the consumer electronics sector (iPod, iPhone), and the software sector (Mac OS X), they are competing against large companies worldwide. In 2007 Apple announced that it has sold their 100 millionth iPod. Since the economy is not in its glory times recently, consumers might not be willing to buy these sorts of products. Apple Inc. has had good sales throughout the years with iPods; however, they may suffer a decrease in their sales due to the economical situation. Apple has been a trendsetter in the past years but will have to continue in doing so if they want to maintain or even improve their situation. Apple needs to remain true to its track record of continuous innovation due to the rapid changes which occur in technology. This is primarily because Apple operates in an industry, where the substitution effect is enormous. The man that probably had and has the most influence on the firm’s upswing is Steve Jobs. People correlate the name Steve Jobs immediately with the company Apple Inc., thus, a threat is the uncertain future of the company if Steve Jobs is not available for any reason. It seems that Apple Inc. relies too much on his ideas and leadership skills. III. Porter’s Analysis

Competitive Rivalry As previously mentioned, Apple has large competitive rivalries in all the industries it is operating in. Thus, Apple’s level of competition is high. Some of the major competitors are listed below: • • • • • •

• •

Microsoft (Microsoft Windows) Nokia (Cell phones) Creative (mp3 players) Dell (Hardware) Hewlett-Packard Company (Hardware) LG Group (Hardware) Sony (Hardware, entertainment system) Online music stores (iTunes)

Many of these competitors are merging with other corporations to gain more market share and increase their profits.

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Threat of New Entrants The main area Apple has to be concerned with is the mp3 sector, through which they provide iTunes. 4It is said that Apple has a 70% market share in the online music online business, which could seem like an opportunity for new entrants. Furthermore, competitors of Apple have realized how much success they have with their brilliant designs. Apple is seen as a trendsetter and companies attempt to mimic its designs to realize these profits as well. The result of this will be that customers will have more choices to pick from, possibly at a lower price. The threat of new entrants is, depending on sector, low to medium. (“Company History,” 2008) Bargaining Power of Suppliers Apple has a strategic alliance with Windows, which enables Apple users to use the Microsoft Windows operating system on its machines. Furthermore, the processors are supplied by Intel which makes Apple rely on them. Apple has to be aware of the policies and regulations for all the outsourced productions worldwide in the areas they are operating. However, the bargaining power in both cases is low. Bargaining Power of Customers Customers have the World Wide Web to share music for free through peer to peer software, which is regulated differently from country to country. Furthermore, retailers may expect lower prices since the present economical situation has reduced the purchasing power of customers. However, in the long run, the rapidly changing needs of consumers for both a diverse range of products and high quality standards in those products need to be fulfilled in order to succeed in this market. Therefore, the bargaining power of customers is low. Threat from Substitutes Sony and Microsoft have produced consoles known as entertainment systems. These entertainment systems are capable of playing mp3 files and video files. For example, the Playstation is capable of playing Blue-ray discs which will not be included in the new MacBook Pro even though it is the new generation for video files. Moreover, iTunes might lose market shares to satellite radio and online music stores that are appearing online. The threat from substitutes is high. IV. 5Financials

Liquidity The Current Ratio of Apple was 2.46 in 2008, which is up from 2007. The industry average for this ratio is 1.5. This ratio provides a good example of a financially healthy company, which will have no issues paying off their short term obligations. Their accounts payable decreased by 6% over the previous year as a result of lower expenses for the production capacity of the plant, which was started to be build in 2005. The Cash Ratio has also increased from the previous year. Short-term investments have been used to fund capital expansion. These are included in the other current assets category. Accounts payable had been stretched to fund these capital expansions. However, even though accounts payable have increased from the previous year, the total percentage compared to the total liabilities & stock equity has decreased from 2007 by 6%. 4

Apple History: http://www.apple-history.nl/h8.html (October 20, 2008)

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Financials definitions: www.investopdia.com (October 27, 2008) 6

Net Working Capital to Total Assets has increased to follow up with the increasing sales Apple has realized in the past few years. The net working capital has increased to omit rollover risk.

Assets Management Inventory: Apple’s increased inventory levels are due to expanded product lines and an increased demand for Apple products in the market place. The inventory increased from $346 million in 2007 to $509 million in 2008. Production capacity was increased by serious investment in production facilities over the past year, which has allowed Apple to meet current market demands for expanding product lines and products in general. The excellent management strategy of the inventory has paid out, since it has grown constantly for the period from 2005 to 2008. The Inventory turnover is by 6 at present, up from 5.6 in 2005. Accounts Receivable has also been managed very efficiently. Accounts receivable turnover was at 16.6 days in 2007, which is below the industry average. Apple distributes its products through third-party distributors and resellers and directly to certain education, consumer, and commercial customers. Apple has a financing arrangement with a third party finance company that provides loan and lease programs to the company’s direct customers;Apple does not assume any risk or recourse relating to these arrangements. Generally, no collateral is required from customers; however, there are credit insurance policies in place for certain customers in Latin America, Europe, Asia, and Australia. There are no customers who account for more than 10% of the total trade receivables account. The percentage of Account Receivable to Sales is 6%. (Form 10-Q, p. 21) 6

Accounts Payable Turnover was at 96.3 days in 2007. Accounts Payable have increased by 210% in the past three years due to increase production capacity/demand, and stretching of the payables to fund capital expansion. Due to Apple’s dominance in the industry this behavior does not have serious repercussions. Apple’s Cash Conversion Cycle is -41 days. This negative conversion cycle is due to quick Inventory and Accounts Receivable turnover and is then compounded by the stretching of the Accounts Payable. This ratio further illustrates the efficiency of Apple’s collection and payment practices. Long-Term Debt Paying Ability Debt Ratio has increased from 0.35 in 2005 to 0.47 in 2008 due to a larger increase in total liabilities compared to the increase in total assets. The increase in total liabilities, which is about 354%, has significantly derived from company’s stretching of payables strategy, and accrued marketing and distribution, deferred margin on component sales and other accrued liabilities. The significant increase in total assets, which about 243% has derived from long-term prepayments. Debt to Equity is at 88.2% in 2008, which was up from 74.4% over the previous year. This increase is due to a 31% increase in accounts payable and an increase in total liabilities by 189% to fund capital expenditures and prepaid expenses. Profitability Gross Profit margin has slightly increased from 2006 to 2008 and is at 35.8%.

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Form 10-Q: http://www.apple.com/investor/ (October 21, 2008)

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Operating Profit margin has increased since 2005 to 2007 and has stayed at a value of 16% due to product innovation and expansion into the MP3 player market. As a result, of these strategies Apple has seen sales soar to new levels. Net Profit margin has also increased, and is currently at 14.9%. This increase is due to great products, excellent marketing programs and extremely efficient management techniques. ROA is below ROE in 2008, which means that the Return on Equity is higher than the Return on Assets. However, ROA increased in the last year from 0.154 to 0.173, whereas ROE decreased from 0.24 to 0.23 respectively..

Market Performance Earnings per Share have increased constantly over the three years period (2005 – 2008), which reflects the increasing demand in the market for Apple’s stocks. The increasing demand has reflected itself in the price changes of the shares in this period. A reason for increasing demand is a stock split in February 28, 2005 (Stilgar, 2007). The desired outcome of these stock splits is to make the stock more affordable to attract more investors. Unfortunately the current market situation has brought back Apple’s share price, which is according to the EPS undervalued. 7

The Price/Earnings ratio has fluctuated due to changing share prices; however, the ratio has is above the industry average, which is currently at 23.1. Apple’s Price/Earnings ratio was 43.5 in 2007. Apple’s P/E ratio might be a sign that investors can expect a higher growth in the future. The Price per Book Value was at 10.3 in 2007 and is also above the industry average of 4.9. The constant increasing P/BV can be an indicator that the company’s share price is undervalued.

V. Recommendation In my opinion, Apple should continue with their “no dividend policy” to invest the retained earnings for continuous growth. Apple’s management could also take into consideration to buy back shares to get the attention of investors, since the share price is almost at the 52 week low. Apple is known as an innovative company that is constantly a step ahead. However, management’sdecision not to include the Blue-ray drive into their new machines is in my opinion a mistake. I am positive that they will include it as soon as the price of these drives drop. Furthermore, management should consider having more compatibility with software from other companies. As I mentioned before, they have had problems with their stingy patents in the 1990s. If they continue to be non-compatible with other products (software) and only perfectly compatible with own products, they may face this problem again. Apple could use more leverage to finance the expansion of capital assets rather than using their own assets. However, they have had issues in the past few years to do so because of their shortage in collateral, which must be present to the banks. Overall, Apple is a solid company with strong financial statements and high growth opportunities and I am positive that they will continue growing in the future. I would recommend to strongly buy Apple’s shares due to all given facts I have provided throughout this report.

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Apple Insider, http://blogs.indews.com/financial_analysis/apple_financial_analysis.php (October 20, 2008)

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APPENDIX EXHIBIT 1 Key Ratios for Apple Inc. 2008

2007

2006

2005

2004

Current Ratio

2.462

2.361

2.242

2.956

2.632

Quick Ratio

2.426

2.324

2.200

2.909

2.595

Cash Ratio

1.738

1.655

1.562

2.371

2.039

Net Working Capital

20598

12657

8038

6816

4375

NWC to total Assets

0.521

0.499

0.467

0.590

0.543

6.000

5.800

5.800

5.600

5.300

Liquidity

Asset Management Inventory Turnover A/R Turnover

N/A

16.600

18.000

16.700

10.800

A/P Turnover

96.300 -67.20 0

68.800 -42.70 0

59.600 -32.80 0

79.000

Cash Conversion Cycle

N/A -41.00 0

-40.300

Fixed Asset Turnover

N/A

15.400

18.400

18.300

12.000

Total Asset Turnover

1.596

1.545

1.574

1.421

1.028

NWC Turnover Long-term Debt Paying Ability

3.094

3.011

3.013

2.490

1.892

Debt Ratio

0.469

0.427

0.420

0.354

0.369

LT Debt to Total Capitalization

0.175

0.094

0.070

0.075

0.055

Debt/ Equity Ratio

0.882

0.744

0.723

0.547

0.586

Gross Margin

0.358

0.353

0.301

0.303

0.291

Operation Profit Margin

0.160

0.160

0.120

0.110

0.050

Net Profit Margin

0.149

0.146

0.103

0.096

0.033

ROA

0.173

0.154

0.130

0.125

0.038

ROE

0.230

0.241

0.199

0.179

0.054

5.442

3.935

2.239

1.503

0.311

43.500

30.800

38.800

50.500

10.300

6.500

7.200

4.500

Profitability

Market EPS P/E P/E (Industry)

23.100

P/BV P/BV (Industry)

4.900

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EXHIBIT 2 Apple Inc. ROE 5-Ways Analysis Operating Profit Margin

Total Assets EBT/EBIT

NI/EBIT

Turnover

Debt Ratio

ROE

2004

0.05

1.00

0.79

1.03

0.37

0.05

2005

0.11

1.00

0.81

1.42

0.35

0.18

2006

0.12

1.00

0.81

1.57

0.42

0.20

2007

0.16

1.00

0.79

1.54

0.43

0.24

2008

0.16

1.00

0.77

1.60

0.47

0.23

2 007

2 006

2 005

380%

1 72% 1 60% 2 01% 1 59% 1 46% 2 58% 1 77% 2 67% 3 54% 2 67% 2 76%

1 39% 1 39% 1 38% 1 31% 1 33% 1 46% 1 26% 1 49% 2 15% 1 61% 1 55%

1 00% 1 00% 1 00% 1 00% 1 00% 1 00% 1 00% 1 00% 1 00% 1 00% 1 00%

380% 429%

2 76% 3

1 55% 1

1 00% 1

EXHIBIT 3 Income Statement Horizontal Analysis (AAPL) in millions of Dollars 2008

Operating Revenue

233%

Cost of Revenue

215%

Gross Operating Profit

275%

Selling/General/Admin Expense

202%

Research & Development

208%

EBITDA

369%

Depreciation & Amortization

264%

EBIT

380%

Interest Income

N/A

Other Income, Net Total Income Avail For Interest Expense Interest Expense

-3444%

Pre-Tax Income Income Taxes 10

Minority Interest Net Income from Continuing Operations Net Income from Discontinued Operations

362%

Net Income from Total Operations

362%

Normalized Income Total Net Income

362%

11

15%

73%

00%

2 62%

1 49%

1 00%

2 62% 2 62% 2 62%

1 49% 1 49% 1 49%

1 00% 1 00% 1 00%

EXHIBIT 4

Assets

Balance Sheet Horizontal Analysis (AAPL) in millions of Dollars 2008

2007

2006

2005

Cash and Equivalents

340% 268% 183% 100%

Marketable Securities

264% 126%

Receivables

271% 450% 140% 100%

Inventories

308% 210% 164% 100%

Other Current Assets

898% 154% 350% 100%

Total Current Assets

337% 213% 141% 100%

Gross Fixed Assets

166% 192% 140% 100%

Accumulated Depreciation

N/A

78% 100%

152% 120% 100%

Net Fixed Assets

300% 224% 157% 100%

Intangibles

297% 398% 167% 100%

Other Non-Current Assets

1248% 678% 785% 100%

Total Non-Current Assets

390% 271% 216% 100%

Total Assets

343% 219% 149% 100%

Liabilities Accounts Payable

310% 279% 191% 100%

Short Term Debt Other Current Liabilities

N/A

Total Current Liabilities

264% 182% 100% 404% 267% 186% 100%

Long Term Debt

N/A

Deferred Income Tax

N/A

103%

63% 100%

Other Non-Current Liabilities Minority Interest Total Non-Current Liabilities

N/A 740% 252% 125% 100%

Total Liabilities

454% 265% 177% 100%

Preferred Stock Equity Common Stock Equity

282% 195% 134% 100%

Total Equity Total Liabilities & Stock Equity

282% 195% 134% 100% 343% 219% 149% 100%

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EXHIBIT 5 Income statement Vertical Analysis (AAPL) in millions of Dollars 2008

2 007

2 006

2 005

100%

1 00%

1 00%

1 00%

0%

0%

0%

0%

Cost of Revenue

64%

65%

70%

70%

Gross Operating Profit

36%

35%

30%

30%

Selling/General/Admin Expense

12%

12%

13%

13%

3%

3%

4%

4%

21%

20%

14%

13%

1%

1%

1%

1%

19%

18%

13%

12%

3%

2%

1%

2%

0%

0%

0%

21%

21%

15%

13%

Interest Expense

0%

0%

0%

0%

Pre-Tax Income

21%

21%

15%

13%

Income Taxes

6%

6%

4%

3%

Minority Interest Net Income from Continuing Operations Net Income from Discontinued Operations

0%

0%

0%

0%

15%

15%

10%

10%

0%

0%

0%

0%

Net Income from Total Operations

15%

15%

10%

10%

15%

10%

10%

0%

0%

0%

0%

0%

0%

Operating Revenue Adjustments to Revenue

Research & Development EBITDA Depreciation & Amortization EBIT Interest Income

N/A

Other Income, Net Total Income Avail For Interest Expense

Normalized Income

N/A

Extraordinary Income

0%

Special Income/Charges

N/A

Income from Cum. Effect of Acct Change

0%

0%

0%

0%

Income from Tax Loss Carryforward

0%

0%

0%

0%

Other Gains

0%

0%

0%

0%

15%

15%

10%

10%

Total Net Income 13

EXHIBIT 6 Balance Sheet Vertical Analysis (AAPL)

Assets

in millions of Dollars 2008

2007

2006

2005

Cash and Equivalents

30%

37%

37%

30%

Marketable Securities

32%

24%

22%

41%

Receivables

6%

16%

7%

8%

Inventories

1%

1%

2%

1%

Other Current Assets

15%

4%

13%

6%

Total Current Assets

88%

87%

84%

89%

6%

11%

12%

13%

4%

5%

6%

Gross Fixed Assets Accumulated Depreciation

N/A

Net Fixed Assets

6%

7%

7%

7%

Intangibles

1%

2%

1%

1%

Other Non-Current Assets

5%

4%

7%

1%

12% 100%

13% 1 00%

16% 1 00%

11% 1 00%

14%

20%

20%

15%

Total Non-Current Assets Total Assets

Liabilities Accounts Payable Short Term Debt

N/A

0%

0%

0%

Other Current Liabilities

N/A

7%

7%

5%

37%

38%

30%

Total Current Liabilities

36%

Long Term Debt

N/A

0%

0%

0%

Deferred Income Tax

N/A

2%

2%

5%

4%

2%

0%

0%

0%

0%

Other Non-Current Liabilities Minority Interest

11% N/A

Total Non-Current Liabilities

11%

6%

4%

5%

Total Liabilities

47%

43%

42%

35%

0%

0%

0%

Preferred Stock Equity

N/A

Common Stock Equity

53%

57%

58%

65%

Total Equity Total Liabilities & Stock Equity

53%

57% 1 00%

58% 1 00%

65% 1 00%

100%

14

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EXHIBIT 7

DIRECT COMPETITOR COMPARISON

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AAPL

DELL

HPQ

MSFT

Industry

Market Cap:

83.63B

26.21B

100.44B

225.70B

25.56B

Employees:

21,600

82,700

172,000

91,000

21.60K

Qtrly Rev Growth (yoy):

38.00%

11.20%

10.50%

18.40%

6.50%

Revenue (ttm):

30.80B

64.15B

113.05B

60.42B

30.80B

Gross Margin (ttm):

34.08%

18.16%

24.53%

80.80%

27.95%

Net Income (ttm):

4.60B

2.85B

8.38B

17.68B

N/A

EPS (ttm):

5.115

1.338

3.228

1.867

1.34

P/E (ttm):

19.25

9.99

12.7

13.24

19.04

Yahoo Finance: http://ca.finance.yahoo.com/q/co?s=AAPL (October 21, 2008)

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References: Apple.com, (2008). Retrieved October 21, 2008, from http://www.apple.com/ Apple Inc. (2008). Form 10-Q. Retrieved October 21, 2008, from http://www.apple.com/investor/ Apple Inc. (2007). Annual report. Retrieved http://biz.yahoo.com/e/071115/aapl10-k.html

October

21,

2008,

from

Einbinder, Liz (2004). iTunes Music Store Begins Countdown to 100 Million Songs. Retrieved October 28, 2008, Web site: http://www.apple.com/pr/library/2004/jul/01itunes.html Investopedia (2008). Investopedia. Retrieved October 27, 2008, from Investopedia Web site: http://investopedia.com Max headroom. (cover story). (2008, February 21). People Management, Retrieved October 21, 2008, from Business Source Complete database. Retrieved October 28, 2008, from The History of Apple Computers Web site: http://web.bryant.edu/~ehu/h364proj/fall_97/hill/happle.html Stilgar, (2007, January 18). Apple Financial Analysis. Retrieved October 28, 2008, from Indews Broadcast Web site: http://blogs.indews.com/financial_analysis/apple_financial_analysis.php Yahoo, (2008). Yahoo Finance. Retrieved October 21, 2008, from Yahoo! Web site: http://finance.yahoo.com/q/co?s=GPS

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