Description
Apple Company profile
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Explain the company to a sophisticated investor who has no specific knowledge about the company or industry. What products or services make up most of the revenues and profits for the company? Does the firm have competitors in multiple industries? What are the industry trends in terms of overall growth, competitiveness, etc.? What strategies does the company follow and how does that affect their sales, expenses and income?
Company Analysis Project
Analysis: Present significant measures of company performance and stock price level and
compare to at least one competitor
- How profitable is this company, and what are the key drivers of this profitability? Compare to peers. How is the company’s growth relative to the industry?
- Are there any “red flags”: negative trends in financial performance? High debt levels? Management problems? Downward revisions in future earnings estimates?
- What are your estimates of value from cash flow analysis? From comparables? Which, if any, of these valuations do you think are reliable?
- Critical thinking: Conclude by linking your investment thesis (story) to your fundamental analysis (ratios, valuation), and indicate if you think the stock, at the current price, is a BUY, SELL, or HOLD. Submit your slide deck (10-20 slides)
Explanation & Answer
Attached.
Apple Company Profile
Name
Institutional Affiliation
Introduction
Started in 1976
Founders were Steve Jobs, Steve
Wozniak, & Ronald Wayne
Headquartered in Cupertino,
California
Deals in production of computers,
mobile phones, software, applications
Is world largest revenue earner in IT
Is world’s most valuable brand
Most Profitable Products and
Services (2016)
Percentage
iPhone 60.1%
iPad 9.08%
Mac 12.25%
Service 13.5%
Others 5.06%
(Statistica, 2016).
iPhone
iPad
Mac
Services
Others
Competitors: Computers
Lenovo
Lenovo 19.8%
HP 18.2%
Dell 13.6%
Asus 7.3%
Apple 7.2%
Acer 7%
Others 26.9%
HP
Dell
Asus
Apple
Acer
Competitors: Smartphones
Apple is second largest
smartphone vendor
Over 230 million phones
sold in 2015
iPhone 6s is their best
selling phone
SE and iPhone 6s Plus
also marketable
Percentage
Samsung
Apple
Huawei
OPPO
Vivo
Other...