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Apple Inc. Apple Inc. Morgan Carpenter William Hernandez Abhisheik Kamal Rosie Levitan David Liu. Corporate Leadership. Reputation and Brand. World’s most valuable company Current market cap: $ 629.89 billion Highest Corporate Reputation in the US
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Apple Inc. Apple Inc. Morgan Carpenter William Hernandez Abhisheik Kamal Rosie Levitan David Liu
Reputation and Brand • World’s most valuable company • Current market cap: $ 629.89 billion • Highest Corporate Reputation in the US • 2012 Harris Poll Reputation Quotient • Most Recognizable Brand • 2011 Millward Brown study • http://www.itworldcanada.com/blogs/cdn/2011/05/11/apple-is-now-the-world-s-most-recognizable-brand/62938/
Tax Management • Apple pays NO state taxes in Nevada • 70% of profit shifted legally overseas with lower tax rates than US • Estimated that Apple’s taxes would have increased by $2.4 billion in 2011 http://www.neurope.eu/article/no-austerity-measures-apples-tax-invasion
Deferred Tax Liability • Reported on B/S at $13.2 Billion • Assuming a 10% interest and 10 yr period • Decrease deferred tax liability by $5.1 Billion • Good tax planning!
Stocks & Dividends • Beginning September 30, 2012: • Apple to purchase $10 billion dollars of stock • Currently, Apple does not pay dividends • Beginning September 30, 2012: • Apple will begin to pay dividends of $2.65 per share per quarter
Available for Sale Securities Apple manages its cash efficiently and invests in mutual funds, bills, securities, and deposits • Total unrealized gains 581 million • Total unrealized losses (72) million This increases marketable securities (on B/S) from $116.7 billion to $117.2 billion
Employee Benefits • Benefits vary by position, location, and years with Apple • Health and life insurance • Short- and long-term disability coverage • 401k Plan with company match • Employee Stock Purchase Plan • Average exercise price: $108.64
Risk Factors • Economic conditions • Technology becomes obsolete • Innovation
Patent Lawsuit vs. Samsung • “Apple Has Most Powerful Patent Portfolio in Consumer Electronics” • IEEE Spectrum • Apple to receive $1.05 billion from Samsung • Samsung’s countersuit • Court to decide on injunction regarding prohibiting sale of Samsung products that infringed patents in the US • December 6, 2012 http://spectrum.ieee.org/at-work/innovation/apple-has-the-most-powerful-patent-portfolio-in-consumer-electronics
Product Releases • To be announced on September 12 • iPhone 5 • iOS 6 • Better security and IT features • MacBookPro with Retina Display • iPad mini • iMac • Mountain Lion
Steve Jobs • Under the leadership of Tim Cook, Apple has developed an extremely efficient and effective supply chain which has been ranked as the world's best for the four years 2007–2010. • Apple’s quick cash conversion cycle enables it to execute massive product launches without having to maintain large, profit-sapping inventories. • Cook differences with Jobs:. • Payment of dividends • Johnny Ives, Senior Vice President of industrial design. • Designed User Interface