Financial Analysis Of Apple, Inc.

Company Background

Apple, Inc. (formerly known as Apple Computer, Inc.) was incorporated in the State of California in 1977. Apple currently designs, manufactures, and markets a variety of computer and personal electronic products, including Macintosh computers, and the iPod digital music player. AppleÕs key markets are consumers, creative professionals, educational institutions, and business users.

For nearly twenty years, Apple computers have been the industry standard for creative industries such as publishing, advertising, digital music and video editing, and graphic design. Apple computer and peripheral products include Macbook and Macbook Pro laptops, iMac and Mac Pro desktops, as well a line of flat-panel displays and the Macintosh OS X operating system. Apple is currently the only company manufacturing computers that use the OS X operating system. Apple currently manufactures several high-priced software products aimed at the professional user, including the Logic line of digital audio production software, and Final Cut Pro video editing software.

Apple is the market leader in portable digital music players with their line of iPod products. Apple is also a leader in third-party digital content sales with the iTunes store, which seamlessly integrates with iTunes software and iPod hardware.

In June of 2007, Apple released its newest product, the iPhone. The iPhone combines a wireless phone with digital music and wireless Internet capabilities. The iPhone is probably the fastest selling new product in the history of Apple, with sales estimates of the $600 phone as high as 700,000 (Goldman Sachs) units during the first weekend after its launch. AT&T Wireless is the sole service provider for the iPhone, and Apple repor...

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...he stock below $120, before reaching $160 in twelve months. I now feel that it should reach $160 by October. A lot of this will depend on the results of the Q2 earnings report, due to be released June 25th. If earnings are above AppleÕs previous forecasts, it may reach $160 sooner. Apple is known for purposely underestimating earnings, so it seems to be generally accepted that they will beat the forecasts. I feel that most of my points in my original analysis hold true, and the iPhone has had a huge impact on the price of the stock. I think it will take something pretty serious to stop AppleÕs momentum, assuming there are new products being introduced for the holidays and the earnings reports are favorable. If there is a new iPod and a lower-cost version of the iPhone introduced in time for the shopping season, it will be the biggest year yet for Steve Jobs and Apple.