FINANCIAL ANALYSIS OF APPLE

Financial Analysis of Apple

Financial Analysis of Apple

Introduction

The main purpose of this study is to make a case study of the financial analysis of Apple. Apple had a long history in the design, manufacture, and marketing of personal computers (Power Mac) and related software, services, peripherals, and networking solutions worldwide. Apple currently enjoyed more than 87.3% market share worldwide for its iPod on MP3 players' and its personal computer products Macintosh enjoyed approximately 2% of worldwide PC markets (Taylor 2008). Along with iPod, the company also designs, develops, and markets the related accessories and services. Apple also offers online music stores with its iTunes software made available for both Mac OS and Windows. Its online music store accounted for 70% of the legal download market.

Apple offers PowerSchool software product, a Web-based student information system for K-12 schools and schools districts; and a variety of other service and support offerings (Kay 2003). It also offers various Apple-branded computer hardware peripherals, including iSight digital video cameras, iTalk voice recording tool for iPod, iTrip FM transmitter, and a range of flat panel TFT active-matrix digital color displays. In addition, the company sells a variety of third-party products, including computer printers and printing supplies, storage devices, computer memory, digital video and still cameras, personal digital assistants, iPod accessories, and various other computing products and supplies (Wilson 2007).

Body: Discussion and Analysis

Apple doesn't pay its stockholders any dividends. In fact, the last time Apple paid dividends was in December of 1995. Apple paid dividends from 15 June 1987 to 1995. As Apple does not have an active dividend policy, Dividend Reinvestment Program (DRIP) is also not available to investors. Cash dividends that Apple did pay, ranged from .06$ to .12$. .06$ regular cash was paid from June 15, 1987 to August 14, 1987; .08$ was paid from December 15, 1987 to September 15, 1988. Apple paid dividends each quarter, and in the months of March, June, September, and December. Apple paid .10$ last quarter of 1988, and first 3 quarters of 1989 (Porter 1980). .11$ was paid last quarter of 1989 and first three quarters of 1990. .12$ was paid from last quarter of 1990 until the end of stocks regular dividend payout.

Apple did have a stock dividend in the year of 2000 and 2005. Apple had a 2-for-1 stock split in February 28, 2005, and June 20, 2000. The stock dividend was declared February 11, Recorded of February 18, and was Payable on February 28 for the year of 2005. For the year 2000, 2-for-1 Stock Split was declared on April 19, recorded on May 19, and was Payable on June 20, 2000.

Apple's main competitors in "Computer Hardware" include Dell Inc., Hewlett-Packard Co., Microsoft Corp., and Cisco Systems, Inc. Dell Inc. and Cisco Systems, Inc have no dividend policy, thus matching Apple's dividend policy. HP on the other hand pays a dividend of $.08 every quarter. HP has been paying this same dividend since second quarter of ...