THINK DIFFERENT

Because the people who are crazy enough to think they can change the world, are the ones who do

>THINK DIFFERENT PHILOSOPHY

BY: ROBERTO ARREDONDO & KAREN VILLICAA

TABLE OF CONTENTS>
THINK DIFFERENT WELCOME INVESTORS!

>ABOUT APPLE>

>APPLE FINANCIALS >

PART 1>
THINK DIFFERENT

> ABOUT APPLE>

ABOUT APPLE>
THINK DIFFERENT

> APPLE HISTORY>

Apple was incorporated in the State of California on January 3, 1977 by Steve Jobs and Stephen Wozniak. Apple's initial public offering was on December 12, 1980. Apple went public on December 12, 1980 at $22.00 per share. The stock has split three times since the IPO so on a split-adjusted basis the IPO share price was $2.75. Mission Statement: Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.

ABOUT APPLE>
THINK DIFFERENT

> COMPANY BACKGROUND>

Apple Inc. and its wholly-owned subsidiaries (collectively Apple or the Company) designs, manufactures and markets a range of personal computers, mobile communication and media devices, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications.

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The Company sells its products worldwide through its retail stores, online stores, and direct sales force and third-party cellular network carriers, wholesalers, retailers, and value-added resellers.

The Company sells to consumer, small and mid-sized business, education, enterprise, government and creative markets.

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ABOUT APPLE>
THINK DIFFERENT

>BUSINESS STRATEGY>
>Offer superior and well-integrated digital lifestyle and productivity solutions. >Continual investment in research and Development.

>Expanding its distribution to reach more customers.

>Ability to ensure a continual and timely flow of competitive products, services and technologies to the marketplace.

ABOUT APPLE>
THINK DIFFERENT

>BUSINESS ORGANIZATION>
The Companys reportable operating segments consist of the Americas (North & South America), Europe (European Countries, Middle East & Africa), Japan, Asia-Pacific (Australia & Asia) and Retail (The Retail segment operates Apple-owned retail stores in the U.S. and in international markets). .

BUSINESS ORGANIZATION>
THINK DIFFERENT

>RETAIL STORES>

11 Retail Stores

BUSINESS ORGANIZATION>
THINK DIFFERENT

>RETAIL STORES>

ABOUT APPLE>
THINK DIFFERENT

>PRODUCTS >
Mac Hardware Products: The Company offers a range of personal computing products including desktop and portable computers, Xserve servers, related devices and peripherals, and various third-party hardware products. The Companys desktop computers include iMac, Mac Pro and Mac mini. The Companys portable computers include MacBook, MacBook Pro and MacBook Air. MacBook is a portable computer designed for consumer and education users.

iPad: In January 2010, the Company introduced iPad, a multi-purpose mobile device for browsing the web, reading and sending email, viewing photos, watching videos, listening to music, playing games, reading ebooks and more. iPad is based on the Companys Multi-Touch technology and allows customers to connect with their applications and content in a more interactive way.

ABOUT APPLE>
THINK DIFFERENT

>PRODUCTS >
iTunes: iTunes digital music management software (iTunes) is an application for playing, downloading, and organizing digital audio and video files and is available for both Mac and Windows-based computers. iTunes is integrated with the iTunes Store, a service that allows customers to find, purchase, rent, and download third-party digital music, audio books, music videos, short films, television shows, movies, podcasts, games, and other applications.

iPhone: iPhone combines a mobile phone, a widescreen iPod with touch controls, and an Internet communications device in a single handheld product. Based on the Companys Multi-Touch user interface, iPhone features desktop-class email, web browsing, searching, and maps and is compatible with both Macs and Windows-based computers.

ABOUT APPLE>
THINK DIFFERENT

>PRODUCTS >
iPod: The Companys iPod line of portable digital music and media players is comprised of iPod touch, iPod nano, iPod shuffle and iPod classic. All iPods work with iTunes. iPod touch allows customers to access the iTunes Store to download audio and video files, as well as a variety of other digital content and applications.

Apple TV: Apple TV is a device that allows customers to rent and watch movies and television shows on their television. Content from Netflix, YouTube, Flickr and MobileMe, as well as music, photos and videos from a Mac or Windows-based computer can also be wirelessly streamed to a television through Apple TV.

ABOUT APPLE>
THINK DIFFERENT

>PRODUCTS >
Displays & Peripherial Products: The Company manufactures the Apple Cinema High Definition Display and sells a variety of Applebranded and third-party Mac-compatible peripheral products, including printers, storage devices, computer memory, digital video and still cameras, and various other computing products and supplies.

ABOUT APPLE>
THINK DIFFERENT

>PRODUCTS >

Operating System Software:

Max OS X: Mac OS X offers Stacks, a means of easily accessing files from the Dock; Finder that lets users quickly browse and share files between multiple Macs; Quick Look, a way to instantly see files without opening a application; Spaces, a feature used to create groups of applications and instantly switch between them; and Time Machine, a way to automatically back up all of the contents of a Mac. iOS: iOS is the Companys mobile operating system that serves as the foundation for iPhone, iPad and iPod touch. In June 2010, the Company launched iOS 4, the latest version of the Companys mobile operating system. iOS 4 features Multitasking that allows customers to move between applications, Folders to organize and easily access applications, a unified Mail inbox, support for the iAd mobile advertising platform, and the iBooks reader and iBookstore.

ABOUT APPLE>
THINK DIFFERENT

>PRODUCTS >

Application Software:
iLife: iLife 11 is the latest version of the Companys consumer-oriented digital lifestyle application suite included with all Mac computers. iLife features iPhoto, iMovie, iDVD, GarageBand, and iWeb. iPhoto is the Companys consumeroriented digital photo software application and iMovie is the Companys consumeroriented digital video editing software application.

iWork: iWork 09 is the latest version of the Companys integrate productivity suite designed to help users create, present, and publish documents, presentations, and spreadsheets. iWork 09 includes updates to Pages 09 for 5 word processing and page layout, Keynote 09 for presentations, and Numbers 09 for spreadsheets.

ABOUT APPLE>
THINK DIFFERENT
Other Applications Software: The Company also sells various other application software, including Final Cut Studio, Final Cut Express, Final Cut Server, Logic Studio, Logic Express 9, Logic Studio Pro, and its FileMaker Pro database software.

>PRODUCTS >

Internet Software and Services: The Company is focused on delivering seamless integration with and access to the Internet throughout the Companys products and services. The Companys Internet solutions adhere to many industry standards to provide an optimized user experience. Safari 5 is the latest version of the Companys web browser that is compatible with Macs and Windows-based computers.

ABOUT APPLE>
THINK DIFFERENT

>KEY EXECUTIVES & BOARD MEMBERS >

Tim Cook is the CEO of Apple and serves on its Board of Directors. Before being named CEO in August 2011, Tim was Apple's Chief Operating Officer and was responsible for all of the companys worldwide sales and operations, including endto-end management of Apples supply chain, sales activities, and service and support in all markets and countries. He also headed Apples Macintosh division and played a key role in the continued development of strategic reseller and supplier relationships, ensuring flexibility in response to an increasingly demanding marketplace. Tim earned an M.B.A. from Duke University, where he was a Fuqua Scholar, and a Bachelor of Science degree in Industrial Engineering from Auburn University.

ABOUT APPLE>
THINK DIFFERENT

>KEY EXECUTIVES & BOARD MEMBERS >

Eddy Cue Senior Vice President, Internet Software & Services

Scott Forstall Senior Vice President, iOS Software

Jeff Williams Senior Vice President, Operations

Peter Oppenheimer Senior Vice President and Chief Financial Officer

PART 2 >
THINK DIFFERENT

> APPLE FINANCIALS >

>APPLE FINANCIALS >

THINK DIFFERENT 5 Year Analysis- Income Statement

>ANUAL REPORT: 2010 >

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT 3 Year Analysis- Income Statement

>ANUAL REPORT: 2010 >

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT

>ANUAL REPORT: 2010 >

Our results through the years have always been great, we can see that in the next charts: Net sales
60.0% 50.0% Percentage 40.0% 30.0% 20.0% 10.0% 60% 2008-2009 14.4% 2009-2010 Percentage 52% 50% 40% 30% 20% 10% 0% 2008-2009 30% 2009-2010 49%

Gross margin

0.0%
Net sales

Gross margin

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Our results through the years have always been amazing, we can see that in the next charts: Earnings per common share
80.00% 70.00%

>ANUAL REPORT: 2010 >

60.00%
Percentage 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Basic Diluted Percentage 2008-2009 32.85% 33.92% 2009-2010 67.14% 66.85% 80% 70% 60% 50% 40% 30% 20% 10% 0% Net income 2008-2009 35% 2009-2010 70%

Net income

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Net Sales by Operating Segment:

>ANUAL REPORT: 2010 >

Net Sales by Operating Segment (2011):

15% Americas net sales Europe net sales Japan net sales 6% Asia-Pacific net sales Retail net sales

37% 13%

29%

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Net Sales by Product:

>ANUAL REPORT: 2010 >

Net Sales by Product:

3% 4% 8% 17% 9% Desktops Portables iPod Other music related products and services iPhone and related products and services 39% 7% 13% iPad and related products and services

Peripherals and other hardware

Software, service and other sales

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Q1 2011 VS Q1 2010:

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Q1: 2011 >

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Q1 2011 Summary:

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Q1: 2011 >

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Q2 2011 VS Q2 2010:

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Q2: 2011 >

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Q2 2011 Summary:

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Q2: 2011 >

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Q3 2011 VS Q3 2010:

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Q3: 2011 >

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Q3 2011 Summary:

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Q3: 2011 >

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Company Stock Performance:

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CHARTS>

Source: Apple Inc.

>APPLE FINANCIALS >

THINK DIFFERENT Stock Charts:

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CHARTS>
APPLE:US

5 YEARS

Apple common shares are traded on The NASDAQ Global Select Market under the ticker symbol AAPL.

3 YEARS
Source: Bloomberg

>APPLE FINANCIALS >

THINK DIFFERENT Stock Charts:

>

CHARTS>
APPLE:US

6 MONTH

Apple common shares are traded on The NASDAQ Global Select Market under the ticker symbol AAPL.

1 WEEK
Source: Bloomberg

>APPLE FINANCIALS >

THINK DIFFERENT

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EARNINGS & ESTIMATES SUMMARY>

QUARTERLY AND ANNUAL EARNINGS & ESTIMATES

Source: Bloomberg

>APPLE FINANCIALS >

THINK DIFFERENT

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EARNINGS & ESTIMATES SUMMARY>

QUARTERLY AND ANNUAL REVENUES & ESTIMATES

Source: Bloomberg

>APPLE FINANCIALS >

THINK DIFFERENT

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EARNINGS & ESTIMATES SUMMARY>

APPLE DIVIDEND POLICY

The Company did not declare or pay cash dividends in either 2010 or 2009. The Company anticipates that for the foreseeable future it will retain any earnings for use in the operation of its business. Apple did used to pay dividends to the owners (The last time Apple paid dividends was in month December of 1995 -$0.12 per share) of its stock but it discontinued that policy. Since, Apple is a fast growing company and the industry it competes in requires constant innovation and rolling out of new products. Apple has always been a good money manager thats why the last quarter (Q3) the total shareholders equity ascended to $69, 343 million dollars.

Source: Bloomberg

+ info: investor.apple.com