APPLE INC. 2008

Apple Inc. 2008



Apple Inc. 2008

Memo

Apple Inc. is a great computer technology company with a wide range of products that serve to every persons needs. Not only are their products great but so is their customer service as well. They are very loyal to their customers needs and are very good about honoring their warranties which are incredible deals. They are also steadily doing very well with their stocks and their net income over the past years. With their income up 364% it's hard for them not to be successful. By taking all of these pieces of information into account I would invest in their stocks. The demand for their product is still high even in tough economic times? showing that they are a good? reliable company with promising stock. Apple Inc. is doing very well and with the Christmas season coming up soon the stocks are sure to rise as their products will be selling out of every store. Apple Inc. seems to be very reliable as shown by all these points so I would invest in their stock.

Considering Apple Inc. CEO Steve Jobs' salary of $1? some may argue that his compensation ought to be a model for other executives. However? his modest cash compensation is more than offset by his past equity awards? including stock options that were backdated. The U.S. Attorney's Office has opened a criminal investigation into the stock options backdating scandal at Apple. Unfortunately for Apple shareholders? the company has been less than forthcoming about Jobs' involvement in any improper backdating.

Statement of problem

In June 2006? Apple announced that some of its past stock option grants were backdated? including options awarded to Jobs. The company stated that it found no misconduct among its current management? though separately it announced the departure of one of its directors and former CFO Fred Anderson. Apple also admitted that Jobs was aware that “favorable grant dates had been selected?” but then emphasized that he did not benefit from them.

Solution

Apple later noted there were two questionable grants to Jobs. One of them? dated Jan. 12? 2000? was not backdated? even though it received approval six days after it actually was granted. Apple's stock price on Jan. 12 happened to be its lowest level for a six-month period.

Apple noted that the other grant? dated Oct. 19? 2001? was backdated. This grant was approved at a meeting that did not even take place? though no member of current management was aware of the “irregularity?” and resulted in a $20 million charge to the company. Throughout this affair? Apple has continued to maintain that Jobs did not benefit from this backdated grant; however? a closer look suggests otherwise.

SWOT Analysis

Apple Inc. is one of the top American computer technology companies. Their products are almost limitless. They range from the iPod mp3 player to the MacBook and to the iPhone. They also have the computer program? iTunes? which is installed on nearly every personal computer in ...