Apple Computer Inc. AAPL

1
Apple Computer Inc. (AAPL)

• Presenters Tim Chung, Bibo Xu, Justin Martina

2
Company Overview

• Apple Computer Inc. is designer and manufacture
  of personal computers, software, peripherals,
  networking solutions, and music players.
• Products include
• iMac and Power Mac G5, eMac, iBook and Power Book
  G4, Air Port, XServe G5
• OS Xv10.4 Tiger, iTunes 5.0
• iPod, iPod Photo, iPod Shuffle, iPod nano

3
Prices and Releases
4
Current Prices 1 Year
5
Current Prices 6 Months
6
Critical Financial Figures
7
Critical Financial Figures
8
Revenue and Profit

• 32.25 increase in profits from last year
• 7.85 increase in profits from March - June

9
Flash MP3 Player Market

• Apple Nano a new flash based MP3 player
• Apples market share for flash MP3 players rose
  from 0 in January to 43.6 in June

10
Digital Players Market
11
iPod Competitors

• HARDDRIVE
• Sony NW-A3000 (the real iPod killer?)
• not to be release in US anytime soon market
  centered in Japan
• After the release of NW-4300 in April, Apple
  market share dropped to 39.4 in August from
  48.5 in March.
• Creative Labs Zen 78 profit loss last quarter
• Cheaper
• Much more colors

12
General Information/News

• Sold 21M iPods (87.3 of total market from Nov
  0405)
• Runs ITunes, sells 1.8M songs every day, started
  ITunes Japan selling 1M songs in first four days
• Holds 37.2 market share in digital players in
  Japan, compared to Sonys 18.6 share

13
General Information/News

• Announced deals with 12 car companies, such as
  Acura, Audi, Honda, VW, for IPod integrations
  with their car stereos
• IBook still has strong sales
• Updated Xserver RAID
• Apple holds approximately 4 of the USs computer
  market and around 2.5 of the worlds market.

14
Outsourcing

• By 2007, all Apple Computers will have Intel
  Chips
• Apple iPods use chips made by Samsung (their
  biggest competitor)

15
Future Expectations

• Although the iTunes-Motorola phone, Rokr, was
  unsuccessful, but it is a major step into
  diversifying into the cell-phone market.
• The iPod Nano is getting spectacular reviews and
  generating a large profit from both the device
  itself as well as accessories.

16
Summary

• High growth in stock market
• Superb reviews on the iPod Nano
• Potential in entering the cell-phone market
• Steady earnings in computers
• High market share with iPods in general

17
Proposal

• Today, 9/19/05
• Price 52.64
• Propose for buying 30 shares (1579.20)
• Target price 6569 (2330 gain)
• Sell if lower than 45 ( 15 fall)