AAPL

Apple Inc. Common Stock

NASDAQ

I. 5 W’s

Apple Inc., (formerly Apple Computer, Inc.,) is a multinational corporation that

creates consumer electronics, personal computers, servers, and computer software,
and is a digital distributor of media content. The company also has a chain of retail
stores known as Apple Stores. Apple's core product lines are
the iPhone smartphone, iPad tablet computer, iPod portable media players,
and Macintosh computer line. Founders Steve Jobs and Steve Wozniak created Apple
Computer on April 1, 1976, and incorporated the company on January 3, 1977
in Cupertino, California. The creation of the company was explained by Steve Jobs,
saying "basically Steve Wozniak and I invented the Apple because we wanted a
personal computer. Not only couldn't we afford the computers that were on the
market, those computers were impractical for us to use”.

History

Jobs and Wozniak started out building the Apple I in Jobs' garage and sold them
without a monitor, keyboard, or casing (which they decided to add on in 1977). The
Apple II revolutionized the computer industry with the introduction of the first-ever
color graphics.1 Sales jumped from $7.8 million in 1978 to $117 million in 1980, the
year Apple went public.

Wozniak left Apple in 1983 due to a diminishing interest in the day-to-day

running of Apple Computers. Jobs then hired PepsiCo's John Sculley to be president.
However, this move backfired and after much controversy with Sculley, Jobs left in
1985 and went on to new and bigger things. He founded his own company NeXT
Software and he also bought Pixar from George Lucas, which would later become a
huge success in computer animation of such movies as Toy Story, A Bug's
Life, Monsters, Inc., and Finding Nemo.Through the rest of the 1980s, Apple was still
doing well and in 1990 it posted its highest profits yet. This was, however, mostly due
to the plans that Jobs had already set in motion before he left, most notably his deal
with a tiny company by the name of Adobe, creator of the Adobe Portable Document
Format (PDF). Together the two companies created the phenomenon known as
desktop publishing. Back in 1985 Sculley turned down an appeal from Microsoft
founder Bill Gates to license its software. This decision would later come back to
haunt him because Microsoft, whose Windows operating system (OS) featured a
graphical interface similar to Apple's, became their toughest competition in the late
1980s and throughout the 1990s.

Over the course of a few years, Apple's market share suffered slowly after its
peak in 1990 and by 1996, experts believed the company to be doomed. It was not
until 1997, when Apple was desperately in need of an operating system, that it bought
out NeXT Software (Jobs' company) and the board of directors decided to ask for
some help from an old friend: Steve Jobs. Jobs became an interim CEO, or iCEO as
he called himself (Jobs was not officially the CEO until 2000). Jobs decided to make
some changes around Apple. He forged an alliance with Microsoft to create a Mac
version of its popular office software. Not long after this decision was the turning
point for the company. Jobs revamped the computers and introduced the iBook (a
personal laptop). He also started branching out into mp3 players (iPod) and media
JASMIN GRACE A. ABCEDE
Equity Analyst
AAPL
Apple Inc. Common Stock
NASDAQ
player software (iTunes). This was Jobs' best move yet. While computers are still an
important part of Apple, its music related products (i.e. iPod and iTunes) have become
the company's most profitable sector. Apple has also recently released the iPhone, a
cellular phone, and the Apple TV. While Steve Jobs died October 5, 2011, Apple
continues on with his legacy. Apple Inc. has pioneered its way through the computer
industry—not once, but multiple times throughout its existence. It believes in pushing
the limits of creativity in order to produce interesting and valuable products for
society. After more than 30 years, it is undeniable that Apple "has had a profound
impact on technology, innovating and influencing not only how we use computers but
the activities for which what we use them.

Key Factors

There is a reason as to why Apple Inc., Company is regarded as the world's most
notable and recognizable brand, and one of the reasons is because Apple demonstrates
an impressive ability to adapt to a challenging environment. As the world faces a
pandemic, Apple remains to be a strong brand and attractive for investments. Based
on the news that was released on May 6, 2020, with a headline of “2 Reasons Apple
Stock is a Buy”, the tech company's fiscal second-quarter results still managed to
highlight why Apple stock is worth buying today, while shares are still trading
well below pre-coronavirus levels. The main premise for this optimistic view
was the momentum of the tech giant's two fastest-growing segments: services
and wearables, home, and accessories. Services revenue grew 16% year over
year in fiscal 2019 and wearables, home, and accessories revenue jumped 41%
over the same timeframe. As these two segments continue to grow as a
percentage of Apple's total sales, they'll help offset the company's dependence
on iPhone and likely help Apple grow its total top and bottom lines in the years
to come.

Another news that was released on May 7, 2020 with a headline of “ Apple
awards $10 mln to nasal swab maker COPAN Diagnostics to help boost factory
output”. As Apple Inc., company became progressive and popular to many
because of its impressive products and services, the company did not forget to
be to its corporate social resoponsibility. “We feel a deep sense of
responsibility to do everything we can to help medical workers, patients, and
communities support the global response to COVID-19,” Jeff Williams, Apple’s
chief operating officer, said in a statement.

From the very beginning, Apple was born to grow. Apple Computer founders
Steve Jobs and Steve Wozniak always expected to get big. Their company was
staffed, financed, and designed as if success was a certainty. It was built not only to
become an ordinary company, but to become a renowned one that makes unique
and incredible products. It was also built not just with a goal of earning profit,
but to carry out its corporate social responsibility to the community whenever
the world faces fortuitous events, just like the COVID-19.

II. Summary of Weakly Performances

Apple is a designer-centric company that likes to build all parts of a product —

hardware, software, and online services — itself. That approach has allowed Apple to
JASMIN GRACE A. ABCEDE
Equity Analyst
AAPL
Apple Inc. Common Stock
NASDAQ
make some of the most elegant and user-friendly products ever created. It produces
popular digital gadgets, including Macs, iPods, iPhones, and iPads. Technical
innovation, paired with minimalistic designs and creative advertisements, as well as
the leadership of the former CEO Steve Jobs, have made Apple one of the most
valuable brands in the world. Its success is also a result of strategic management that
exploits opportunities and protects the business from threats in the consumer
electronics and information technology services industries.

Sales growth has even been strong in mainland China (although the Wuhan
coronavirus outbreak gives reason to wonder if that trend will continue), and CEO
Tim Cook said on the company's earnings call that coronavirus-related uncertainty is
a reason the company is giving a wide range of possible revenue estimates for the
current quarter. Nevertheless, they are giving investors guidance that they should
expect strong performance to continue, because Apple demonstrates an impressive
ability to adapt to a challenging environment. Apple operates in highly competitive
markets, and in its devices business, it faces challenges in managing short product
cycles and adapting to shifting consumer preferences. However, Apple is back on its
feet, and it is gaining back its popularity (especially when they launched their new
model), their performances have significantly increased this year.

While there could be some adverse effects this quarter or even the rest of this year
from COVID-19, Apple's long-term value shouldn't be affected. Now that Apple's
share price has dropped back to the low $270s, its share repurchases will be retiring
more shares than they otherwise would have. As such, share repurchases at more
economical prices today will benefit shareholders over the long-term once the market
stabilizes.

Sales Pitch

“Apple is the choice of those people who want to feel special associating with
brand. It can make consumers feel good about themselves, as it oozes lifestyle,
innovation, passion and style. They convey powerful stories that will make the
audiences want to be a part of everything they do”.

III. Highlights

The three (3) key events which helped the company to grow were the following:

1. The Born of Macintosh Computer

In 1984, Apple introduced its most successful product yet — the Macintosh, a
personal computer that came with a built-in screen and mouse. The machine featured
a GUI, an operating system known as System 1 (the earliest version of Mac OS), and
a number of software programs, including the word processor MacWrite and the
graphics editor MacPaint. The New York Times said that the Macintosh was the
beginning of a "revolution in personal computing."

2. The iMac and the iPod

JASMIN GRACE A. ABCEDE

Equity Analyst
AAPL
Apple Inc. Common Stock
NASDAQ
In 1997, Jobs returned to Apple as the interim CEO, and a year later the company
introduced a new personal computer, the iMac. The machine became iconic for its
semi-transparent plastic case, which was eventually produced in a variety of colors.
The iMac was a strong seller, and Apple quickly went to work developing a suite of
digital tools for its users, including the music player iTunes, the video editor iMovie,
and the photo editor iPhoto. These were made available as a software bundle known
as iLife. In 2001, Apple released its first version of the iPod, a portable music player
that allowed users to store "1000 songs in your pocket." Later versions included
models such as the iPod Shuffle, iPod Nano, and iPod Touch. By 2015, Apple had
sold 390 million units.

3. The iPhone

In 2007, Apple extended its reach into the consumer electronics market with the
release of the iPhone, a smartphone that sold over 6 million units. Later models of the
iPhone have added a multitude of features, including GPS navigation, Touch ID, and
facial recognition, along with the ability to shoot photos and video. In 2017, Apple
sold 223 million iPhones, making the device the top-selling tech product of the year.
Under CEO Tim Cook, who took over Apple after Jobs' death in 2011, the company
has expanded, releasing a new generation of iPhones, iPads, iMacs, and MacBooks,
along with new products such as the Apple Watch and the HomePod. In 2018, the
tech giant became the first U.S. company to be worth $1 trillion.

Graph of Equity

Equity Recommendation

JASMIN GRACE A. ABCEDE

Equity Analyst
AAPL
Apple Inc. Common Stock
NASDAQ

As an equity analyst, I can say that it is still favorable to invest in Apple, given all
the data provided. If we also base it in all the factors in SWOT analysis, it is seen that
Apple has more of opportunities (e.g., high demand of products) and strengths (e.g.,
high brand recognition), than to threats (e.g., the evolving environment of electronic
communication) and weaknesses (e.g., high price). However, with the outbreak of the
pandemic, there will be no doubt of short-term disruption to Apple's business and its
stock price will continue to be volatile until the outbreak has run its course.
Nevertheless, Apple thrives in the electronic device industry, despite the challenges
because it demonstrates an impressive ability to adapt to a challenging environment.
The uniqueness in its design gives the company a competitive advantage, which
reflects in their sales and revenues. The company is also known for making feasible
strategies when addressing threats and weaknesses that it recently developed or has
chances of developing. That said, with all the things working in its favor, investors
should still invest in Apple Company.

JASMIN GRACE A. ABCEDE

Equity Analyst