Class Project: Apple 10K Letter

Dear shareholders, customers, and employees,

The apple company is devoted to bringing consumers the latest technology through its innovative hardware, software and services.  Our company owns a distinct brand known for its sleek, seamless, and easy to use design.  Our business strategy allows us to appeal to individuals and institutions who are seeking products that are able to handle digitally intensive projects.  Third parties may use or add on to our technology and platform by submitting content and applications to the Apple website (apple.com).  Customers are able to discover and download content from the digital apple retail applications on devices including Mac, PC, and iOS devices.  Apple in-store employees are knowledgeable and passionate about the Apple Company to provide customers with high-quality care and sale experience.  The Company believes in the power of innovation and make research, development, marketing and advertising a priority to bring innovative products.

Apple has reached unprecedented results for our second quarter revenue.  Revenue for the 2015-second quarter totals $58 billion, a 65 percent increase over $38 billion in Q2 2014.  The 2015-second quarter generally accepted accounting principles net income of $58 billion or $2.45 a diluted share.  The 2015 first quarter net gain of $38 billion or $2.33 a diluted share.  As of 2014, gross margin came in at $70,537 million or 38.6&.  Gross margin of company sales generally depend on products and distribution channels.  Items such as software, accessories, and service and support consistently have higher gross margins than other products.  The following consists of other financial income statements (in millions) included in the 2014 10K Form.  OCI refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income.

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Statements from Apple Leaders:

“We exceed our earnings constantly, I am happy with our team’s hard work and dedication to commitment of sales”, said Tim Cook, Chief Executive Officer of Apple, Inc.

“I see great potential for our near future.”  Apple Chief Financial Officer, Peter Oppenheimer says, “I am generally pleased with a net income of $2.45 diluted share, our positive cash flow will help excel our company in sales for next quarter.”

Apple designs, manufactures, and markets electronic technology and telecommunications equipment.  Merchandises include mobile communication and media devices, personal computers, portable digital music players, and a variety of related software, services, accessories and third-party digital content and applications.

Apple products are distributed the channels such as the iTunes Store, App Store, iBooks Store, and Mac App Store retail stores, online stores, and direct sales force and third-party cellular network carriers, wholesalers, retailers, and value-added resellers to consumer markets.

The second quarter’s domestic and international net sales accounted for 31% and 69%, respectively, of total net sales.  Geographic domestic and international markets include the Americas, Europe (including India, the Middle East and Africa), Greater China (including China, Hong Kong and Taiwan), Japan, Rest of Asia Pacific (including Australia and Asian countries).  China has grown to become the biggest iPhone market.  We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of the Apple Watch,” said Tim Cook, Chief Executive Officer of Apple, Inc.

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Apple continues to advance the world of technology and bring new levels to smart technology.  As of April 24, 2015, the Apple Corporation offers the Apple Watch as the newest addition to our line of apple products.  Featuring three unique models, the Apple Watch is the most customizable product we have to offer so far.  The online release of the watch has shown staggering sales results selling out all but a few of the April 24 ship date watches only an hour after the pre-orders began.  The Apple Watch has given us a great start to the 2015 June quarter.

The company believes the sale of Apple hardware, software, digital content and applications, accessories, and service will continue to grow the company for many years to come.  Apple has proof of its advancement starting including a new 176-acre campus in Sunnyvale, California.  Our experts forecasts these outcomes in upcoming reports:

  • Apple expects Q3 2015 revenues to increase 5-10 percent in the range of $60.91 billion to $63.81 billion.
  • Earnings per share are expected to grow 5-10 percent in the range of $2.45 to $2.56.
  • Cash is expected to grow 5-10 percent in the range of $33 billion to $34 billion.

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In order to deliver impressive innovation Apple relies on over 98,000 employees.  We treasure their differences to create broader avenues for problem solving and innovation and that is why we treasure it.  Business transparency is essential to keeping up fair working conditions for all of our employees around the world.  We have promised $100 million dollars to President Obama’s ConnectED program that will bring advanced technology to underprivileged schools.  This program is important to Apple because we believe that it is essential to our future to have educated individuals from all lifestyles.  Apple works to bring innovation to all aspects of our company.  To prove that, we have made 87% of our global operations run on renewable energy and 100% of our data centers and U.S. operations and run on renewable energy.  We surround ourselves with like-minded individuals who share our vision of a clean, simple and smart world.

Thanks to the support of our investors, shareholders and employees, Apple is continuing to bring innovation to world.

Sincerely,

Tim Cook

CEO, Apple INC.

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