Apple top gainer in JMG Financial Group jumps 18.1% in 34 days 02 August 2022

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Apple Inc. (NASDAQ:AAPL), the NASDAQ's largest Computer integrated systems company by market cap, is the top gainer, [ranked 1 out of 8] by % price gain, as per disclosure by JMG Financial Group to the SEC of their holdings as at Jun 30, 2022. It is assumed there has been no significant change in the holdings since that date.

It has jumped $24.79 (or 18.1%) from $136.72 as at Jun 30 to $161.51 as at today's close. Market Capitalization has climbed by $382.1 billion from $2,213.5 billion to $2,595.6 billion in the past 34 days since Jun 30.

APPLE Stock Dashboard [traded in US Dollars, USD]

ExchangeNASDAQSectorComputer Integrated Systems
Aug 02, 2022$160.99Independent Sector RankingRanked 7 in Just Capital
P/E (FY2021)25.9Market Cap$2,587 billion
EPS (FY2021)$6Shares Outstanding16,070,752,000
Dividend Yield (TTM)0.6%Institutional Ownership9,314,545,028
DPS (past 12 months)85c% of shares outstanding57.5%
EPS Growth % (Q3 2022 vs Q2 2022)-22.1AAPL in IndicesNASDAQ-100, Computer
Ave Daily Volume88,555,742 sharesIndependent Sector comparison by Dividend Yield % (TTM)Stock: .55; Sector: .56. 1.8% Premium to sector av
52-Week Range129.04 - 182.44Independent Sector comparison by P/EStock: 25.92; Sector: 25.43. 1.9% Premium to sector av

Institutional ownership updated after last SEC Filing on May 18

TODAY'S INSTITUTIONAL NEWS FROM Q2 2022 REPORTS

TOP TWO INSTITUTIONAL SELLING OF AAPL IN Q2 REPORTED TODAY

[Figures in brackets show transaction value estimates based on updated close price]

+ Proshare Advisors slashes 33.4% in Apple [$998 million]

Proshare Advisors LLC decreased its net position in Apple by 6,627,607 shares (or 33.4%) in Q2/2022.

In SEC filings for Q1/2022, Proshare Advisors LLC (CIK:0001357955) was ranked 61 out of 4163 institutional shareholders of Apple (NASDAQ:AAPL). During the quarter the Volume Weighted Average Price (VWAP) of Apple was USD150.59, valuing the 6,627,607 shares at USD998 million.

At June 30 Proshare Advisors LLC held 13,229,703 Apple shares worth USD1.8 billion on that date. At the current price there is an unrealised profit of $328 million.

+ Argent Capital Management decreases 23.0% in Apple [$35.2 million]

Argent Capital Management LLC decreased its net position in Apple by 233,632 shares (or 23.0%) in Q2/2022.

In SEC filings for Q1/2022, Argent Capital Management LLC (CIK:0001120926) was ranked 356 out of 4163 institutional shareholders of Apple (NASDAQ:AAPL). During the quarter the Volume Weighted Average Price (VWAP) of Apple was USD150.59, valuing the 233,632 shares at USD35.2 million.

At June 30 Argent Capital Management LLC held 780,306 Apple shares worth USD106.7 million on that date. At the current price there is an unrealised profit of $19.3 million.

TOP TWO INSTITUTIONAL PURCHASES OF AAPL IN Q2 REPORTED TODAY

[Figures in brackets show transaction value estimates based on updated close price]

+ Schubert & Co surges 1,785.5% in Apple [$21.6 million]

Schubert & Co increased its net position in Apple by 143,730 shares (or 1,785.5%) in Q2/2022.

In SEC filings for Q1/2022, Schubert & Co (CIK:0001894830) was ranked 3666 out of 4163 institutional shareholders of Apple (NASDAQ:AAPL). During the quarter the Volume Weighted Average Price (VWAP) of Apple was USD150.59, valuing the 143,730 shares at USD21.6 million.

At June 30 Schubert & Co held 151,780 Apple shares worth USD20.8 million on that date. At the current price there is an unrealised profit of $3.8 million.

+ Victory Capital Management augments 0.9% in Apple [$15.8 million]

Victory Capital Management Inc. increased its net position in Apple by 104,618 shares (or 0.87%) in Q2/2022.

In SEC filings for Q1/2022, Victory Capital Management Inc. (CIK:0001040188) was ranked 87 out of 4163 institutional shareholders of Apple (NASDAQ:AAPL). During the quarter the Volume Weighted Average Price (VWAP) of Apple was USD150.59, valuing the 104,618 shares at USD15.8 million.

At June 30 Victory Capital Management Inc. held 12,151,171 Apple shares worth USD1.7 billion on that date. At the current price there is an unrealised profit of $301.2 million.

UPCOMING EVENT: DIVIDEND

The company today announced a quarterly dividend of 23.0c per share for Q3/2022; unchanged from the previous quarter (Q2/2022) dividend of 23.0c. The ex-dividend date is Friday, August 05, 2022 and the record date is Monday, August 08, 2022 and it is payable on Thursday, August 11. Total dividends per share paid in the 12 months ended August 02 were 89.0c. This reflects actual dividend yield of 0.6% at the last price of $161.51.

Dividends over the past 12 months were up 6.6% from 89.0c to 83.50c year-on-year. Over the past 4 years, full year dividends have increased 20.3% from 74.0c to 89.0c and average annual compound growth rate was 6.3%.

Primary Exchange and Other Listings: Trading Currency and Volume

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
NasdaqAAPLUSD160.9988,555,71599.80.5
XetraAPCEUR158.7128,3210.20.6
Total100.00

1 USD= 0.9739 EUR

ADVT= Avg. Daily Volume of Trading; VI= Volume Index (1 is avg)

Stock vs Index (Annual Percentage Change)

December 31Share price of Apple Inc.of S&P 500 Index
202134.626.9
202082.316.3
201989.028.9
2018-5.9-6.2
201712.219.4

Apple Inc. has outperformed the S&P 500 Index in 3 of the past 5 years

years: 2021,2020,2019;3 of the past 5 years

INDEX

SECTION 1 SEC FORM 10-K: MANAGEMENT'S DISCUSSION & ANALYSIS

SECTION 2 THE PAST QUARTER: FINANCIALS, ANALYST RATINGS

SECTION 3 THE PAST QUARTER: PRESS RELEASES AND CORPORATE WIRE

SECTION 4 THE PAST QUARTER: TWEETS POSTED BY TIMOTHY D. COOK, CEO

SECTION 5 THE PAST QUARTER: NEWS AND BUZZ

SECTION 6 INSTITUTIONAL OWNERSHIP AS AT MAR 31, 2022

SECTION 7 TODAY'S BULLISH SIGNALS

SECTION 8 ONGOING BULLISH PARAMETERS

SECTION 9 TODAY'S BEARISH SIGNALS

SECTION 10 ONGOING BEARISH PARAMETERS

SECTION 11 CORPORATE PROFILE AND INDEPENDENT RATINGS

SECTION 12 FINANCIALS H1/2022, FY 2021

SECTION 13 TAX & DIVIDEND

SECTION 14 TOP MANAGEMENT

SECTION 15 BOARD OF DIRECTORS

SECTION 16 INSIDER OWNERSHIP AND SELLING IN THE PAST 12 MONTHS

SECTION 17 FINANCIALS AS REPORTED H1/2022, FY 2021, PAST 7 YEARS, NOTES

SECTION 18 PEER COMPARISON & RANKING OF AAPL

SECTION 19 CORPORATE BONDS

SECTION 20 PATENTS

SECTION 21 STOCK IDENTIFIERS

GLOSSARY

DATA & ARCHIVE DOWNLOAD CENTER

AAPL: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:

+ PRICE VOLUME - 5-YEAR HISTORY

+ FINANCIALS - 10-YEAR HISTORY [INCLUDING Q2/2022]:

+ INSTITUTIONAL SHAREHOLDERS - CATEGORISED AND COMPLETE LIST OF 3561 INSTITUTIONS AS AT Mar 31, 2022:

+ PEER COMPARISON - STOCK IN COMPUTER INTEGRATED SYSTEMS SECTOR AND STOCK IN INDICES

+ PATENTS - CATEGORISED LIST OF 5-YEAR HISTORY OF 13766 [INCLUDING 1 IN CURRENT WEEK]:

AAPL: LINKS IN HTML TO FURTHER INFORMATION:

+ NEWS ARCHIVES - AAPL PAST 4 YEARS IN HTML:

+ STOCK BUZZ IN HTML

+ PRICE VOLUME CHARTS IN HTML

+ INSIDER OWNERSHIP AND SELLING IN THE PAST 10 YEARS

+ BOARD OF DIRECTORS

SECTION 1 SEC FORM 10-K: MANAGEMENT'S DISCUSSION & ANALYSIS

1.1 SEC Form 10-K: Management's Discussion & Analysis

Management's Discussion and Analysis of Financial Condition and Results of Operations:

The following discussion should be read in conjunction with the consolidated financial statements and accompanying notes included in Part II, Item 8 of this Form 10-K. This section of this Form 10-K generally discusses 2021 and 2020 items and year-to-year comparisons between 2021 and 2020. Discussions of 2019 items and year-to-year comparisons between 2020 and 2019 are not included in this Form 10-K, and can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended September 26, 2020.

Fiscal Year Highlights:

COVID-19 Update:

The COVID-19 pandemic has had, and continues to have, a significant impact around the world, prompting governments and businesses to take unprecedented measures, such as restrictions on travel and business operations, temporary closures of businesses, and quarantine and shelter-in-place orders. The COVID-19 pandemic has at times significantly curtailed global economic activity and caused significant volatility and disruption in global financial markets. The COVID-19 pandemic and the measures taken by many countries in response have affected and could in the future materially impact the Company's business, results of operations and financial condition, as well as the price of the Company's stock.

During 2021, aspects of the Company's business continued to be affected by the COVID-19 pandemic, with many of the Company's retail stores, as well as channel partner points of sale, temporarily closed at various times, and a significant number of the Company's employees working remotely. The Company has reopened all of its retail stores and substantially all of its other facilities, subject to operating restrictions to protect public health and the health and safety of employees and customers, and it continues to work on safely reopening the remainder of its facilities, subject to local rules and regulations. During the fourth quarter of 2021, certain of the Company's component suppliers and logistical service providers experienced disruptions, resulting in supply shortages that affected sales worldwide. Similar disruptions could occur in the future.

The extent of the continuing impact of the COVID-19 pandemic on the Company's operational and financial performance is uncertain and will depend on many factors outside the Company's control, including the timing, extent, trajectory and duration of the pandemic, the emergence of new variants, the development, availability, distribution and effectiveness of vaccines and treatments, the imposition of protective public safety measures, and the impact of the pandemic on the global economy and demand for consumer products. Refer to Part I, Item 1A of this Form 10-K under the heading "Risk Factors" for more information.

Fiscal 2021 Highlights:

Total net sales increased 33% or $91.3 billion during 2021 compared to 2020, driven by growth in all Products and Services categories. Year-over-year net sales during 2021 also grew in each of the Company's reportable segments.

In April 2021, the Company announced an increase to its current share repurchase program authorization from $225 billion to $315 billion and raised its quarterly dividend from $0.205 to $0.22 per share beginning in May 2021. During 2021, the Company repurchased $85.5 billion of its common stock and paid dividends and dividend equivalents of $14.5 billion.

(1)Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product.

(2)Wearables, Home and Accessories net sales include sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and accessories.

(3)Services net sales include sales from the Company's advertising, AppleCare, cloud, digital content, payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products.

iPhone:

iPhone net sales increased during 2021 compared to 2020 due primarily to higher net sales from the Company's new iPhone models launched in the first quarter and fourth quarter of 2021 and a favorable mix of iPhone sales.

Mac:

Mac net sales increased during 2021 compared to 2020 due primarily to higher net sales of MacBook Air, MacBook Pro and iMac.

iPad:

iPad net sales increased during 2021 compared to 2020 due primarily to higher net sales of iPad Air and iPad Pro.

Wearables, Home and Accessories:

Wearables, Home and Accessories net sales increased during 2021 compared to 2020 due primarily to higher net sales of accessories and Apple Watch.

Services:

Services net sales increased during 2021 compared to 2020 due primarily to higher net sales from advertising, the App Store and cloud services.

Apple Inc. | 2021 Form 10-K | 21:

Segment Operating Performance:

The Company manages its business primarily on a geographic basis. The Company's reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China mainland, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company's other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company's customers and distribution partners and the unique market dynamics of each geographic region. Further information regarding the Company's reportable segments can be found in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 11, "Segment Information and Geographic Data."

Americas:

Americas net sales increased during 2021 compared to 2020 due primarily to higher net sales of iPhone, Services and Mac.

Europe:

Europe net sales increased during 2021 compared to 2020 due primarily to higher net sales of iPhone, Services and iPad. The movement of foreign currencies in Europe relative to the U.S. dollar had a net favorable impact on Europe net sales during 2021.

Greater China:

Greater China net sales increased during 2021 compared to 2020 due primarily to higher net sales of iPhone, iPad and Services. The strength of the Chinese renminbi relative to the U.S. dollar had a favorable impact on Greater China net sales during 2021.

Japan:

Japan net sales increased during 2021 compared to 2020 due primarily to higher net sales of iPhone and Services.

Rest of Asia Pacific:

Rest of Asia Pacific net sales increased during 2021 compared to 2020 due primarily to higher net sales of iPhone, iPad and Services. The movement of foreign currencies in the Rest of Asia Pacific relative to the U.S. dollar had a favorable impact on Rest of Asia Pacific net sales during 2021.

Products Gross Margin:

Products gross margin increased during 2021 compared to 2020 due primarily to higher Products volume, a different Products mix and the strength in foreign currencies relative to the U.S. dollar. Products gross margin percentage increased during 2021 compared to 2020 due primarily to a different Products mix, improved leverage and the strength in foreign currencies relative to the U.S. dollar.

Services Gross Margin:

Services gross margin increased during 2021 compared to 2020 due primarily to higher Services net sales and a different Services mix. Services gross margin percentage increased during 2021 compared to 2020 due primarily to a different Services mix and improved leverage, partially offset by higher Services costs.

The Company's future gross margins can be impacted by a variety of factors, as discussed in Part I, Item 1A of this Form 10-K under the heading "Risk Factors." As a result, the Company believes, in general, gross margins will be subject to volatility and downward pressure.

Operating Expenses:

Research and Development:

The year-over-year growth in R&D expense in 2021 was driven primarily by increases in headcount-related expenses, R&D-related professional services and infrastructure-related costs. The Company continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace, and to the development of new and updated products and services that are central to the Company's core business strategy.

Selling, General and Administrative:

The year-over-year growth in selling, general and administrative expense in 2021 was driven primarily by increases in headcount-related expenses, variable selling expenses and professional services.

The year-over-year decrease in OI&E during 2021 was due primarily to lower interest income and net losses on marketable securities, partially offset by positive fair value adjustments on non-marketable securities and lower interest expense on term debt.

Provision for Income Taxes:

The Company's effective tax rate for 2021 was lower than the statutory federal income tax rate due primarily to a lower effective tax rate on foreign earnings, tax benefits from share-based compensation and foreign-derived intangible income deductions. The Company's effective tax rate for 2020 was lower than the statutory federal income tax rate due primarily to the lower tax rate on foreign earnings, including the impact of tax settlements, and tax benefits from share-based compensation.

The Company's effective tax rate for 2021 was lower compared to 2020 due primarily to higher tax benefits from foreign-derived intangible income deductions and share-based compensation and the favorable impact of changes in unrecognized tax benefits, partially offset by a one-time adjustment in 2020 of U.S. foreign tax credits in response to regulations issued by the U.S. Department of the Treasury in December 2019.

During 2021, the Company established deferred tax assets ("DTAs") for foreign tax credit carryforwards in Ireland and increased DTAs for R&D tax credit carryforwards in California, which resulted in a combined $3.5 billion increase in the valuation allowance on the Company's DTAs, with no effect on net income. Management believes it is more likely than not that forecasted income, together with future reversals of existing taxable temporary differences, will be sufficient to realize substantially all of the Company's remaining DTAs.

Liquidity and Capital Resources:

The Company believes its balances of cash, cash equivalents and unrestricted marketable securities, which totaled $172.6 billion as of September 25, 2021, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond.

The Company's material cash requirements include the following contractual and other obligations.

Debt:

As of September 25, 2021, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $118.1 billion (collectively the "Notes"), with $9.6 billion payable within 12 months. Future interest payments associated with the Notes total $39.5 billion, with $2.9 billion payable within 12 months.

The Company also issues unsecured short-term promissory notes ("Commercial Paper") pursuant to a commercial paper program. As of September 25, 2021, the Company had $6.0 billion of Commercial Paper outstanding, all of which was payable within 12 months.

Leases:

The Company has lease arrangements for certain equipment and facilities, including retail, corporate, manufacturing and data center space. As of September 25, 2021, the Company had fixed lease payment obligations of $14.6 billion, with $1.8 billion payable within 12 months.

Manufacturing Purchase Obligations:

The Company utilizes several outsourcing partners to manufacture subassemblies for the Company's products and to perform final assembly and testing of finished products. The Company also obtains individual components for its products from a wide variety of individual suppliers. Outsourcing partners acquire components and build product based on demand information supplied by the Company, which typically covers periods up to 150 days. As of September 25, 2021, the Company had manufacturing purchase obligations of $54.8 billion, with $54.7 billion payable within 12 months. The Company's manufacturing purchase obligations are primarily noncancelable.

Other Purchase Obligations:

The Company's other purchase obligations primarily consist of noncancelable obligations to acquire capital assets, including product tooling and manufacturing process equipment, and noncancelable obligations related to advertising, content creation and Internet and telecommunications services. As of September 25, 2021, the Company had other purchase obligations of $8.3 billion, with $4.8 billion payable within 12 months.

Deemed Repatriation Tax Payable:

As of September 25, 2021, the balance of the deemed repatriation tax payable imposed by the U.S. Tax Cuts and Jobs Act of 2017 (the "Act") was $24.6 billion, none of which is payable within 12 months.

In addition to its cash requirements, the Company has a capital return program authorized by the Board of Directors. The Program does not obligate the Company to acquire any specific number of shares. As of September 25, 2021, the Company's quarterly cash dividend was $0.22 per share. The Company intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors.

Critical Accounting Estimates:

The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles ("GAAP") and the Company's discussion and analysis of its financial condition and operating results require the Company's management to make judgments, assumptions and estimates that affect the amounts reported. Note 1, "Summary of Significant Accounting Policies," of the Notes to Consolidated Financial Statements in Part II, Item 8 of this Form 10-K describes the significant accounting policies and methods used in the preparation of the Company's consolidated financial statements. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Uncertain Tax Positions:

The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. The evaluation of the Company's uncertain tax positions involves significant judgment in the interpretation and application of GAAP and complex domestic and international tax laws, including the Act and matters related to the allocation of international taxation rights between countries. Although management believes the Company's reserves are reasonable, no assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in the Company's reserves. Reserves are adjusted considering changing facts and circumstances, such as the closing of a tax examination or the refinement of an estimate. Resolution of these uncertainties in a manner inconsistent with management's expectations could have a material impact on the Company's financial condition and operating results.

Legal and Other Contingencies:

The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, the outcomes of which are inherently uncertain. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment. Resolution of legal matters in a manner inconsistent with management's expectations could have a material impact on the Company's financial condition and operating results.

SECTION 2 THE PAST QUARTER: FINANCIALS, ANALYST RATINGS

2.1 AAPL Financials Summary: EPS up 71.3% to $5.67 in FY2021 [ y.e. 25 Sep 2021]

+ Net profit was up 64.9% from $57.4 billion in FY2020 to $94.7 billion in FY2021.

+ Earnings Per Share (EPS) was up 71.3% from $3.31 in FY2020 to $5.67 in FY2021.

Year ended SepFY2021FY2020FY2019
Sales ($ B)365.8274.5260.2
Pretax ($ B)109.267.165.7
Net ($ B)94.757.455.3
EPS ($)5.673.312.99

2.2 Analyst Recommendations: Past Quarter

2022BrokerageCurrent RatingPrev TargetPrice Target
Aug 02KeyCorpOverweight173177
Jul 29Raymond JamesMaintains190185
Jul 29Rosenblatt SecuritiesNeutral168160
Jul 29CitigroupBuy175185
Jul 29BarclaysMaintains166169

SECTION 3 THE PAST QUARTER: PRESS RELEASES AND CORPORATE WIRE

June 19: Apple launches $50 million Supplier Employee Development Fund

To support expanded initiatives for people across its supply chain, Apple is partnering with the International Labor Organization, the International Organization for Migration, and education experts around the world

Source: Company Website

June 15: Apple Reports Second Quarter Results

CUPERTINO, California April 28, 2022 Apple today announced financial results for its fiscal 2022 second quarter ended March 26, 2022. The Company posted a March quarter revenue record of $97.3 billion, up 9 percent year over year, and quarterly earnings per diluted share of $1.52. "This quarter's record results are a testament to Apple's relentless focus on innovation and our ability to create the best products and services in the world," said Tim Cook, Apple's CEO. "We are delighted to see the strong customer response to our new products, as well as the progress we're making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world - both in what we create and what we leave behind." "We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices," said Luca Maestri, Apple's CFO. "Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter."

Source: Company Website

June 08: Apple Reports Second Quarter Results

CUPERTINO, California April 28, 2022 Apple today announced financial results for its fiscal 2022 second quarter ended March 26, 2022. The Company posted a March quarter revenue record of $97.3 billion, up 9 percent year over year, and quarterly earnings per diluted share of $1.52. "This quarter's record results are a testament to Apple's relentless focus on innovation and our ability to create the best products and services in the world," said Tim Cook, Apple's CEO. "We are delighted to see the strong customer response to our new products, as well as the progress we're making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world - both in what we create and what we leave behind." "We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices," said Luca Maestri, Apple's CFO. "Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter." Apple's board of directors has declared a cash dividend of $0.23 per share of the Company's common stock, an increase of 5 percent. The dividend is payable on May 12, 2022 to shareholders of record as of the close of business on May 9, 2022. The board of directors has also authorized an increase of $90 billion to the existing share repurchase program. Apple will provide live streaming of its Q2 2022 financial results conference call beginning at 2:00 p.m. PT on April 28, 2022 at apple.com/investor/earnings-call.

June 03: Apple Reports Second Quarter Results

CUPERTINO, California April 28, 2022 Apple today announced financial results for its fiscal 2022 second quarter ended March 26, 2022. The Company posted a March quarter revenue record of $97.3 billion, up 9 percent year over year, and quarterly earnings per diluted share of $1.52. "This quarter's record results are a testament to Apple's relentless focus on innovation and our ability to create the best products and services in the world," said Tim Cook, Apple's CEO. "We are delighted to see the strong customer response to our new products, as well as the progress we're making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world - both in what we create and what we leave behind." "We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices," said Luca Maestri, Apple's CFO. "Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter." Apple's board of directors has declared a cash dividend of $0.23 per share of the Company's common stock, an increase of 5 percent. The dividend is payable on May 12, 2022 to shareholders of record as of the close of business on May 9, 2022. The board of directors has also authorized an increase of $90 billion to the existing share repurchase program. Apple will provide live streaming of its Q2 2022 financial results conference call beginning at 2:00 p.m. PT on April 28, 2022 at apple.com/investor/earnings-call.

June 01: Apple Reports Second Quarter Results

"This quarter's record results are a testament to Apple's relentless focus on innovation and our ability to create the best products and services in the world," said Tim Cook, Apple's CEO. "We are delighted to see the strong customer response to our new products, as well as the progress we're making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world - both in what we create and what we leave behind."

Source: Company Website

May 29: Apple, Google, and Microsoft commit to expanded support for FIDO standard to accelerate availability of passwordless sign‑ins

Password-only authentication is one of the biggest security problems on the web, and managing so many passwords is cumbersome for consumers, which often leads consumers to reuse the same ones across services. This practice can lead to costly account takeovers, data breaches, and even stolen identities. While password managers and legacy forms of two-factor authentication offer incremental improvements, there has been industry-wide collaboration to create sign-in technology that is more convenient and more secure. The expanded standards-based capabilities will give websites and apps the ability to offer an end-to-end passwordless option. Users will sign in through the same action that they take multiple times each day to unlock their devices, such as a simple verification of their fingerprint or face, or a device PIN. This new approach protects against phishing and sign-in will be radically more secure when compared to passwords and legacy multi-factor technologies such as one-time passcodes sent over SMS.

Source: Company Website

May 23: Apple Reports Second Quarter Results

CUPERTINO, California April 28, 2022 Apple today announced financial results for its fiscal 2022 second quarter ended March 26, 2022. The Company posted a March quarter revenue record of $97.3 billion, up 9 percent year over year, and quarterly earnings per diluted share of $1.52. "This quarter's record results are a testament to Apple's relentless focus on innovation and our ability to create the best products and services in the world," said Tim Cook, Apple's CEO. "We are delighted to see the strong customer response to our new products, as well as the progress we're making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world - both in what we create and what we leave behind." "We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices," said Luca Maestri, Apple's CFO. "Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter." Apple's board of directors has declared a cash dividend of $0.23 per share of the Company's common stock, an increase of 5 percent. The dividend is payable on May 12, 2022 to shareholders of record as of the close of business on May 9, 2022. The board of directors has also authorized an increase of $90 billion to the existing share repurchase program.

Source: Company Website

May 18: Apple Reports Second Quarter Results

CUPERTINO, California April 28, 2022 Apple today announced financial results for its fiscal 2022 second quarter ended March 26, 2022. The Company posted a March quarter revenue record of $97.3 billion, up 9 percent year over year, and quarterly earnings per diluted share of $1.52. "This quarter's record results are a testament to Apple's relentless focus on innovation and our ability to create the best products and services in the world," said Tim Cook, Apple's CEO. "We are delighted to see the strong customer response to our new products, as well as the progress we're making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world - both in what we create and what we leave behind." "We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices," said Luca Maestri, Apple's CFO. "Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter."

Source: Company Website

May 10: Apple Reports Second Quarter Results

"This quarter's record results are a testament to Apple's relentless focus on innovation and our ability to create the best products and services in the world," said Tim Cook, Apple's CEO. "We are delighted to see the strong customer response to our new products, as well as the progress we're making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world - both in what we create and what we leave behind."

Source: Company Website

3.1 Apple issued 719 new patents in the past quarter

Apple (AAPL) has been issued 719 new patents by the USPTO & EPO.

This corresponds to an average of 240 patents a month, down 8.0% from an average of 261 patents per month in 2021.

To view details, click on link shown in the DATA & ARCHIVE DOWNLOAD CENTER.

SECTION 4 THE PAST QUARTER: TWEETS POSTED BY TIMOTHY D. COOK, CEO

(@tim_cook) Followers 13M

- Tue Jul 26, 2022

Thirty-two years ago the Americans with Disabilities Act reshaped society in profoundly important ways. At Apple, we have always believed that the best technology should be made for everyone - and that accessibility is essential to building a more equitable world.

- Mon Jul 25, 2022

At Apple, we feel a deep responsibility to help strengthen our communities. As part of our $2.5 billion commitment to help address the housing crisis in California, we're proud to welcome the residents of Veterans Square to their new home.

- Thu Jul 21, 2022

Our health is affected by the many small actions we take every day. We want to empower you with actionable steps you can take to improve your well-being. Helping you stay healthy motivates us to keep innovating.

- Wed Jul 13, 2022

Coding is one of the most valuable skills a person can learn. It can open new doors, jumpstart careers, and help big dreams seem like achievable goals. Everyone around the world should have an opportunity to learn how to code.

- Mon Jul 04, 2022

Happy Independence Day to everyone celebrating today! Progress isn't always linear but even in times of great challenge, America has prevailed thanks to our core principle that all people are created equal.

- Fri Jul 01, 2022

Everyone should have the opportunity to learn to code. As part of our Racial Equity and Justice Initiative, we're proud to have launched the first U.S. Developer Academy in Detroit. Caps off to the creators and coders who are graduating today!

- Sun Jun 19, 2022

This Juneteenth, as we commemorate emancipation, we celebrate the important progress we've made as a society, and we recommit ourselves to the essential work of building a more just and equitable world.

- Jun 19, 2022

Today we celebrate the wisdom, the fun, and the unfailing support of fathers everywhere. To my dad, and dads at Apple and beyond, thanks for all you do! Happy Father's Day!

- Thu Jun 16, 2022

We' re celebrating the 20th year of Apple Camp with a focus on the environment. We' re excited to welcome parents and kids to a summer filled with exploration and creative storytelling with iPad, led by our talented teams at stores around the world.

- Wed Jun 15, 2022

We're thrilled to bring @MLS to @AppleTV ! Starting next year, fans around the world can watch all Major League Soccer matches in one place.

SECTION 5 THE PAST QUARTER: NEWS AND BUZZ

5.1 Institutional News [Updated July 29, 2022]

The source data is compiled as an aggregation of SEC filings. So far in this quarter 2,039 institutions have reported their holdings at the end of quarter Q2. The remaining 4,514 institutions are expected to file by day 45 of Q3, the deadline date.

5.1.1 Top 5 Institutions increasing their holdings in Apple shares [Q2/2022]

Institution Name (CIK)Rank on Mar 31, 2022Mar 31, 2022Jun 30, 2022Increase %*Today's Market Value $
Sumitomo Mitsui Trust Holdings (0001475365)2848,431,83049,435,0072.17.8 billion
Mirae Asset Global Investments. (0001569395)9710,485,42612,024,38714.71.9 billion
Robeco Institutional Asset Management (0001418773)9110,995,55911,397,5143.71.8 billion
Russell Investments Group (0001692234)1128,529,3358,835,3433.61.4 billion
Assenagon Asset Management (0001546007)2003,398,1126,213,35882.8977.7 million

*Today's Market Value in $ of holdings as at June 30, 2022.

5.1.2 Top 5 Institutions decreasing their holdings in Apple shares [Q2/2022]

Institution Name (CIK)Rank on Mar 31, 2022Mar 31, 2022Jun 30, 2022Decrease %*Today's Market Value $
BB&T (0000092230)1178,206,3187,921,7263.51.2 billion
STRS Ohio (0000820478)1207,831,4927,614,6112.81.2 billion
Asset Management One Co. (0001068855)1257,359,3137,276,6551.11.1 billion
Allspring Global Investments Holdings (0001890906)1168,351,2196,731,01419.41.1 billion
KBC Group Nv (0001411133)1426,297,4735,640,73310.4887.6 million

*Today's Market Value in $ of holdings as at June 30, 2022.

5.2 Stock Buzz

Source: The Wall Street Journal

Aug/JulHeadline
Mon 01Apple Is Selling Bonds to Buy Back Stock
Fri 29Amazon, Apple, Roku, Intel and More Stock Market Movers Friday
Thu 28Apple Earnings Expected to Show First iPhone Sales Decline in Almost Two Years
Tue 26Giant Manager Buys Up Apple, Nvidia, Corning, and Pfizer Stock
Mon 25Giant Manager Buys Up Apple, Nvidia, Corning, and Pfizer Stock
Tue 19IBM, Apple, JNJ, and More of Tuesday's Stock Market Movers

Source: Other Publishers

AugHeadlinePublisher
Tue 02Supply Chain Constraints Ease as Apple Reports $83 Billion in RevenueThe Globe and Mail
Tue 02Apple Inc. (NASDAQ: AAPL) s Stock Adds 0.37%, Making It A Good Investmentstocksregister
Tue 02Midday Movers: Boeing, Apple, NIO and MoreYAHOO!Finance
Tue 02Apple Inc. (NASDAQ:AAPL) Shares Sold by Wooster Corthell Wealth Management Inc.Defense World
Tue 02Apple Inc. (NASDAQ:AAPL) Shares Sold by Iowa State BankETF Daily News
Tue 02Apple drops mask requirements for most of its corporate workers - The VergeInvesting.com

Please view more Stock Buzz stories in DATA DOWNLOAD CENTER

SECTION 6 INSTITUTIONAL OWNERSHIP AS AT MAR 31, 2022

Institutional ownership updated after last SEC Filing on May 14

6.1 Reported holdings of institutions end of quarter

As at March 31, 2022 institutions had increased their holdings to 57.5% of issued capital, up from 57.0% nine months ago.

Quarter - endedMar 31Dec 31, 2021Sep 30, 2021Jun 30, 2021
% of issued capital57.558.256.257.0

6.2 Top 20 Institutional Ownership of Apple as at March 31, 2022

As at March 31, 2022, 3082 Institutions held investments in shares of Apple. Institutions decreased their holdings to 57.5% of issued capital, down from 58.2% as at Dec 31. The largest shareholder was Vanguard Group Inc. with 7.8% of Apple. The second largest shareholder was Blackrock Inc. with 6.3%.

*Note: Minimum Core Shareholding is computed on the basis of SEC filings over the last 12 quarters (3 years). A higher % of shareholding above the minimum core holding may be indicative of a potential positioning by an active institution to overweight.

Apple Top 14 Index Funds (in desc order of Shares) hold 22.0% [last column shows % above minimum core shareholding]. Please download the spreadsheet to view full list of 1402 Index Funds holding 26.2% of Apple as at March 31, 2022.

InstitutionShares% of TotalValue $% above Core*
Vanguard Group Inc.1,269,995,7507.8221.4 B2.5
Blackrock Inc.1,027,632,8876.3179.2 B0.77
FMR LLC351,584,7622.261.3 B1.9
Northern Trust Corp186,031,9851.132.4 B[0]
Bank of New York Mellon Corp141,394,7140.8724.7 B[0]
JP Morgan Chase & Co126,714,7860.7822.1 B5.3
Morgan Stanley125,095,7760.7721.8 B2.2
Schwab Charles Investment Management Inc.80,739,7740.514.1 B6.3
Dimensional Fund Advisors LP48,832,7040.38.5 B[0]
Sumitomo Mitsui Trust Holdings, Inc.48,431,8300.38.4 B[0]
Deutsche Bank AG47,492,2760.298.3 B2.0
AllianceBernstein36,172,4000.226.3 B[0]
American Century Companies Inc.35,338,1850.226.2 B[0]
California Public Employees Retirement System31,700,4100.25.5 B[0]
% Held by Top 14 Institutional shareholders3,557,158,23922.0620.2 B-

Apple Top 6 Active Funds (in desc order of Shares) hold 3.2% [last column shows % above minimum core shareholding]. Please download the spreadsheet to view full list of 1680 Active Funds holding 10.3% of Apple as at March 31, 2022.

InstitutionShares% of TotalValue $% above Core*
Geode Capital Management, LLC272,081,6681.747.4 B10.3
Swiss National Bank71,060,7080.4412.4 B24.2
Fisher Asset Management, LLC63,949,8080.3911.1 B16.4
Jennison Associates LLC48,826,2700.38.5 B13.2
Capital Research Global Investors38,903,9110.246.8 B84
Massachusetts Financial Services31,215,8630.195.4 B23.2
% Held by Top 6 Institutional shareholders526,038,2283.291.7 B-

6.3 Institutional ownership of AAPL at Mar 31: McDonald Partners top increase of 607,847%

As at March 31, 2022, 1146 institutions or 32.2% of AAPL's institutional shareholders had increased their holding of shares in Apple from December 31. The top increase was by McDonald Partners which increased its holding by 115,491 shares, or 607,847.4% to 115,510 shares.

Top 10 Increases [March 31, 2022 vs December 31, 2021]

Value is shown in the table below at March 31 AAPL share price of $174.35.

Institution (CIK)SharesValue, $% increase
McDonald Partners LLC (0001331074)115,49119.4 M607,847.4
Aaron Wealth Advisors LLC (0001812198)25,989,5704.4 B30,391.8
Baltimore-Washington Financial Advisors, Inc. (0001555486)233,65239.2 M25,016.3
Hanseatic Management Services Inc. (0001128074)6,2321 M4,793.8
Simplex Trading, LLC (0001488542)1,063,111178.4 M2,805.0
IPG Investment Advisors LLC (0001602237)165,12227.7 M928.1
Gannett Welsh & Kotler (0001082917)3,374566,164839.3
Axel Capital Management, LLC (0001478997)39,0006.5 M780.0
BCK Partners, Inc. (0001845867)20,9493.5 M697.6
Capital Fund Management S.A. (0001323645)286,95548.2 M665.9
Total27,923,4564.7 billion-

6.4 Institutional ownership of AAPL at Mar 31: First Quadrant top decrease of 100%

1656 Institutional shareholders decreased their holdings in Q1/2022. The top decrease was First Quadrant who reduced their shareholding in Apple by 274,241 shares (100.0%) from 274,318 as at December 31 to 77 as at March 31.

Top 10 Decreases [March 31, 2022 vs December 31, 2021]

Value is shown in the table below at March 31 AAPL share price of $174.35.

Institution (CIK)SharesValue, $% decrease
FIRST QUADRANT LP/CA (0001014736)274,241(46 M)100.0
Winslow Capital Management, LLC (0000900973)4,587,508(769.8 M)99.9
Old North State Trust, LLC (0001760444)46,193(7.8 M)99.9
Kessler Investment Group, LLC (0001525947)40,477(6.8 M)98.5
CenterStar Asset Management, LLC (0001722053)9,898(1.7 M)98.3
Aries Wealth Management (0001729515)273,425(45.9 M)97.3
Summit Securities Group, LLC (0001531593)1,034,762(173.6 M)95.7
Hills Bank & Trust Company (0001309148)147,544(24.8 M)94.6
Miracle Mile Advisors, LLC (0001585859)8,265,490(1.4 B)94.4
Kensington Investment Counsel, LLC (0001845536)39,810(6.7 M)93.5
Total14,719,348(2.5 billion)-

6.5 Institutional ownership of AAPL at Mar 31: LMCG Investments. top new shareholder

An analysis conducted after the mid - quarter deadline of May 14 for Q1 SEC filings by 6516 institutions shows that there were 21 new institutional shareholders. LMCG Investments. (1470944) was the largest new shareholder with 412,079 shares valued at $71.8 million as at March 31.

Top 10 New shareholders as at March 31, 2022

Value is shown at price of March 31, 2022 (in desc order of Shares)

Institution (CIK)SharesValue, $
LMCG Investments, LLC. (0001470944)412,07971.8 M
IAT Reinsurance Co Ltd. (0001633625)345,82060.3 M
City Of London Investment Management Co Ltd (0001034546)255,03744.5 M
Power Corp Of Canada (0000801166)180,21931.4 M
HPC Germany GmbH (0001731296)164,11228.6 M
Fund Evaluation Group, LLC (0001356249)42,3127.4 M
Third Security, LLC (0001542294)35,7006.2 M
Albar Capital Ltd (0001732621)30,0485.2 M
Bright Rock Capital Management, LLC (0001509973)20,0003.5 M
P-Solve Investments Ltd (0001706247)18,0113.1 M
Total1,503,338262.1 million

6.6 Top 10 Exits in Q1/2022 (in desc order of shares)

Institution (CIK)SharesValue, $
Norges Bank (0001374170)142,076,40325.2 B
Investec Asset Management Ltd (0001418329)4,693,248831.1 M
Amalgamated Bank (0000919192)4,034,486714.4 M
Investment Management Corp of Ontario (0001811568)2,229,522394.8 M
Teachers' Retirement System Kentucky (0000714142)2,219,549393 M
Australian Super Pty Ltd (0001694164)2,126,000376.5 M
Hudson Bay Capital Management LP (0001393825)1,855,000328.5 M
Loring Wolcott & Coolidge Fiduciary Advisors LLP /MA (0000932974)1,826,099323.4 M
Seaward Management Limited Partnership (0001008929)1,657,533293.5 M
Central Trust & Investment Co (0000044365)1,642,686290.9 M
Total164,360,52629.1 billion

SECTION 7 TODAY'S BULLISH SIGNALS

7.1 PAST WEEK: WEAK MOMENTUM UP - AAPL gains 6.2% on volume 0.8 times average

The price ranged between a low of $156.79 on Wednesday Jul 27 and a high of $162.51 on Friday Jul 29.

DateAppleClose [$]Change %RPC % *Comment
Wed Jul 27Top gainer in The Wellcome Trust climbs 10.9% in 28 days156.793.4-0.8Top Rise
Thu Jul 28Top gainer in The Wellcome Trust climbs 14.7% in 29 days, hits 83-day high157.350.4-0.6Price rise on rising relative strength
Fri Jul 29Top gainer in Sage Financial Group jumps 15.1% in 30 days, hits 85-day high162.513.31.5VI*=1.1
Mon Aug 01Top gainer in Sage Financial Group jumps 15.1% in 33 days161.51-0.6-0.6Steepest Fall
Tue Aug 02Top gainer in JMG Financial Group jumps 18.1% in 34 days160.99-0.3-0.02Price rise on beating relative strength

* RPC - Relative Price Change is % price change of stock less % change of the NASDAQ-100 Index.

[Volume Index (VI); 1 is average]

7.2 Rank in the top 11% by Relative Valuation in the NASDAQ market

DescriptionValueRank
EV/EBITDA23.7In Top 11%

7.3 Rank in the top 18% by Price Performance in the NASDAQ market

DescriptionValueRank
Price/MAP501.11In Top 16%
1-month Price Change %13.7In Top 18%

7.4 Uptrend

Exponential Moving Average Price of 1.1 and positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 155.84 minus the 26-day EMA of 151.27 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

- The price to 50-day EMAP ratio is 1.1, a bullish indicator. The 50-day EMAP has increased to $149.70. An increase is another bullish indicator.

Past Month:

- Rises to Falls: In the past month the number of rises outnumbered falls 13:8 or 1.6:1.

Past Quarter:

The Best 3 weeks in the past quarter

In the past quarter the week beginning Monday May 23 saw the highest weekly rise of 8.8% for a relative price increase of 1.6%.

Mon-FriChange %NASDAQ-100 Index Change %RPC %Vol Ind [1 is avg]
May 23-278.87.11.61.1
Jun 20-247.77.40.20.9
Jul 04-085.84.71.20.8

7.5 Undervaluation

- Earnings yield of 3.9% is more attractive compared with the NASDAQ average earning yield of 3.7%.

- The earnings yield of 3.9% is 1.5 times the 10-year bond yield of 2.5%.

(All figures in %)

Earnings Yield3.9
NASDAQ avg3.7
Dividend Yield0.6
Bond Yield2.5

7.6 Other Bullish Signals

- Total Liabilities/EBITDA of 2.6 is less than 5, this compares favourably with the Joseph Piotroski benchmark of 5.

- Net profit margin has averaged 22.7% in the last 3 years. This is considered superior and suggests a high margin of safety.

SECTION 8 ONGOING BULLISH PARAMETERS

8.1 Growth in dividends per share and earnings per share

- Apple sees dividend rise for a ninth consecutive year

Apple reported dividends per share of 89.0c in the past year, up 6.6% from the previous year. This is the ninth consecutive dividend increase. In the past 9 years average annual compound growth rate of dividends was 9.5%.

- EPS growth [FY2021 vs FY2020] of 71.3%:

FYEPS ($)Growth %
20215.6771.3
20203.3110.7

8.2 Rule of 40

The stock scores a favorable score exceeding 40 when using the Rule of 40 (Revenue Growth plus EBITDA margin). Y.o.y revenue growth of 33%, EBITDA margin is 29.9% and the sum of the two 63.1% needs to exceed 40%.

8.3 Past three-years

- Apple rose for a third consecutive year. In the past three years it has risen $111.21 (223.4%).

8.4 Rank in the top 1% by Size in the NASDAQ market

DescriptionValueRank
Ave daily Turnover$6.6 billionIn Top 1%
Tr 12 months Revenue$386 billionIn Top 1%
MCap$2,587 billionIn Top 1%

8.5 Rank in the top 21% by Performance in the NASDAQ market

DescriptionValueRank
EBITDA Margin %29.9In Top 20%
Net Profit Margin %25.9In Top 21%

8.6 Rank in the top 3% by Productivity in the NASDAQ market

DescriptionValueRank
Return on Capital Employed [ROCE] %48.4In Top 1%
Return on Assets [ROA] %27In Top 3%

8.7 Present Value of $1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PV$1000 > 1,021

PV$1,0003 mo ago1 yr ago3 yrs ago
AAPL.NASDAQ$1,022$1,119$3,244
Computer Integrated Systems sector$1,004$1,059$2,746
NASDAQ-100 Index$989$862$1,677

8.8 The Best Periods [3 Mo, 1 Yr, 3 Yrs] with Price Change % > 2

3-Year price change of 216.5% for Apple outperformed the change of 65.4% in the NASDAQ-100 Index for a relative price change of 151.2%.

Price Change %QuarterYear3 Years
Apple2.111.3216.5
Computer Integrated Systems sector0.45.6168.8
NASDAQ-100 Index-4.7-13.865.4

8.9 Moving Annual Return of 11.9% in the past year:

Moving Annual Return was 11.9% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 40.6%. The Moving Annual Return has consistently exceeded 6%.

AAPLClose ($)Dividends ($)Capital Gain %% YieldAnnual Return %
Aug 02160.990.8911.30.611.9
1 Yr ago144.690.8337.90.838.7
2 Yrs ago104.950.78106.41.5107.9
3 Yrs ago50.860.7451.56.5
4 Yrs ago48.430.6636.41.838.2

Close 5 years ago $35.51

Prices are adjusted for a share split. On August 31, 2020 shareholders received 4 shares for every 1 share held prior to that date.

8.10 Buybacks and 2-Years Decrease of 9.6% in Total Shares on Issue

In the past 2 years total shares on issue have decreased by 1.8 billion (9.6%) from 18.5 billion to 16.7 billion. Buybacks have averaged 590 million shares [3.2%] per financial year. Based on a dynamic start date of 2 years ago, there has been no rise in issued capital over the last 2 years. A reduction in total shares on issue is a favourable indicator in Joseph Piotroski's 9 indicators.

Period EndingTotal Shares on IssueFYBuybacksBuyback %
Sep 25, 202116,701,272,0002021650,847,0003.8%
Sep 26, 202017,352,119,00020201,119,217,0006.1%
Sep 28, 201918,471,336,0002019--
Total1,770,064,000
Average per FY590,021,333

8.11 Created Market Value [CMV] past 30 yrs of $2,577.5 billion

- Market Capitalization has increased by $2,581.6 billion from $5.6 billion to $2,587.2 billion in the last 30 years. This increase comprises cumulative retained earnings (RETE) of $4.1 billion and Created Market Value of $2,577.5 billion. The Created Market Value multiple, defined by the change in MCap for every $1 of retained earnings is exemplary at $634.31.

8.12 Apple sees dividend rise for a ninth consecutive year

Apple reported dividends per share of 89.0c in the past year, up 6.6% from the previous year. This is the ninth consecutive dividend increase. In the past 9 years average annual compound growth rate of dividends was 9.5%.

8.13 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 11.8%

TSR %1 yr3 yrs5 yrs10 yrs20 yrs30 yrs
AAPL.NASDAQ11.947.536.824.839.322.6

8.14 P/E/G < 1

The price earnings ratio of 25.9 divided by trailing twelve months eps growth of 71.3% corresponds to an attractive P/E/G of 0.4 times; being less than the value benchmark of 1.0.

EPS Growth (%)71.3
P/E/G0.36
P/E25.92

8.15 Low Debt to Equity (%)

The debt to equity ratio of 9.5% is under a safe benchmark figure of 50%. However, it has deteriorated in the past two years.

YearsDebt to Equity (%)
Sep 20219.51
Sep 20207.65
Sep 20196.61
Sep 201811.17
Sep 20178.93

8.16 % Growth in EPS & RPS

EPS growth: Sequential EPS growth (Q2 vs Q1, 2022) was down 27.0% and PCP EPS growth (Q2 2022 vs Q2 2021) was up 9.2%. FY EPS growth (FY2021 vs FY2020) was up 71.3%.

RPS growth: Sequential growth in Revenue per share (Q2 vs Q1, 2022) was down 21.0% and PCP growth in Revenue per share (Q2 2022 vs Q2 2021) was up 12.1%. FY growth in Revenue per share (FY2021 vs FY2020) was up 38.5%.

(All figures in %)

Sequential growth in EPS (Q2 vs Q1, 2022)-27.0
Sequential growth in RPS (Q2 vs Q1, 2022)-21.0
PCP growth in EPS (Q2 2022 vs Q2 2021)9.2
PCP growth in RPS (Q2 2022 vs Q2 2021)12.1
FY growth in EPS (FY2021 vs FY2020)71.3
FY growth in RPS (FY2021 vs FY2020)38.5

8.17 Increased Volume, up 200% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 200.5% to 88.6 million shares.

Avg. Daily Volume Traded 12 months ended Aug 02, million shares

YearADVT
202288.6
2021106.2
202035.3
201932.3
201829.5

8.18 Increased VWAP, up 287% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 286.7% to $156.96. Based on a dynamic start date of five years ago, there has been no decline in VWAP over the last 5 years.

Past five years, 12 months ended Aug 02 (USD)

YearHigh PriceVWAPLow Price
2022182.44156.96129.04
2021149.15122.85102.01
2020105.170.0346.99
201956.3146.4234.37
201850.0840.5935.44

8.19 Increased share turnover, up 187% in 5 years

In the past five years, average daily share turnover has increased 187.2% to $13.8 billion. This suggests increased liquidity.

Past five years, 12 months ended Aug 02 (USD billion)

YearAverage Daily Turnover
202213.8
202114.5
20209.9
20196.0
20184.8

8.20 Satisfies one criterion of Benjamin Graham

-"Total debt less than tangible book value"; total debt of USD6 billion is less than tangible book value of USD63.1 billion.-"Earnings growth over the most recent ten years of 7% compounded - that is a doubling of earnings in a five-year period"; the earnings per share have more than doubled in the last 5 years.

8.21 Satisfies 6 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Positive operating cashflow.

- Return on Assets improvement [from 17.7% to 27%].

- Good quality of earnings [operating cashflow exceeds net income].

- Reduction in total shares on issue.

- Improvement in gross margin [from 38.2% to 41.8%].

But does not meet the following 3 criteria of Joseph Piotroski:

- Improvement in long-term debt to total assets.

- Improvement in current ratio.

- Improvement in asset turnover.

8.22 Year-over-year (%) Change in Dividend:

Quarterly dividend for Q2/2022 was 23.0c, up 4.5% sequentially from 22.0c in Q1/2022. The year-on-year change was up 4.5% from 22.0c in the previous corresponding period Q2/2021.

QuarterQ2/2021Q1/2022Q2/2022
Dividend ($ Cents)22.022.023.0

SECTION 9 TODAY'S BEARISH SIGNALS

9.1 Rank in the bottom 15% by Relative Valuation in the NASDAQ market

DescriptionValueRank
Price to Sales6.7In Bottom 15%
Dividend Yield %0.6%In Bottom 8%
Price to Book Value41In Bottom 1%

9.2 Downtrend

Trailing Relative Strength (6 months) at 49 percentile:

- The stock has a 6-month relative strength of 49 in the NASDAQ market of 3,396 stocks, 5 units and 2 preference stocks which means it has underperformed 51% of the market.

9.3 Overvaluation

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 7.4. Compared with the rest of the market the stock is overvalued and ranks in the bottom 4% of stocks by value of Q Ratio.

9.4 Other Bearish Signals

- Return on Assets of 27% versus sector average of 28.8%.

9.5 Overbought/Bearish Signals:

- The Relative Strength Index (RSI) of 74.0 has penetrated the overbought line of 70, suggesting the price gain of 8.4% in the last 14 days is unusually high.

- The stock is overbought according to the Williams % R indicator of -13.0, suggesting the price is close to its 14-day high of $163.63.

- The Stochastic indicator of 93.9 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

SECTION 10 ONGOING BEARISH PARAMETERS

10.1 Sequential EPS growth [Q2/2022 vs Q1/2022] of -27.0%:

The most recent quarter (Q2/2022) showed a decline of 27.0% in sequential growth of Quarterly EPS.
Quarterly ReportEPS ($)Growth %
Q2/20221.54-27.0
Q1/20222.1168.8

10.2 A 255.8% Increase in Insider Selling

In the past 5 years a total of 6,249,695 Apple shares worth $1.1 billion were sold by insiders. Based on a dynamic start date of 5 years ago, insider selling has averaged 1,249,939 shares per year. In the past year, insiders sold 3,086,749 shares, an increase of 255.8% from the previous year.

YearNo. of SharesValue, $
Aug 02, 20223,086,749461,133,251
1 Yr ago867,606202,042,772
2 Yrs ago584,715130,430,190
3 Yrs ago751,663163,520,597
4 Yrs ago958,962159,263,096
Total6,249,6951,116,389,907

10.3 Quarterly Trend in Revenue, Net Profit and Net Profit Margin:

- Revenue and Net Profit growth have shown signs of deterioration in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Mar 22 [Q2 vs Q1]-21.5-27.825.7
Dec 21 [Q1 vs Q4]48.768.527.9

SECTION 11 CORPORATE PROFILE AND INDEPENDENT RATINGS

11.1 Activities

Apple Inc. designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. It is the NASDAQ's largest Computer integrated systems company by market capitalisation.

In FY 2021, the top earner of Revenue was iPhone [52.5%] followed by Services [18.7%] at Rank 2 , Wearables Home and Accessories [10.5%] at Rank 3 , Mac [9.6%] at Rank 4 and iPad [8.7%] at Rank 5. In FY 2021, revenue growth was highest in iPhone [39.3%] followed by iPad [34.3%] at Rank 2 , Services [27.3%] at Rank 3 , Wearables Home and Accessories [25.3%] at Rank 4 and Mac [22.9%] at Rank 5. In FY 2021, the top regional earner of Revenue was Americas [41.9%] followed by Europe [24.4%] at Rank 2 , Greater China [18.7%] at Rank 3 , Japan [7.8%] at Rank 4 and Rest of Asia Pacific [7.2%] at Rank 5. In FY 2021, revenue growth was highest in Greater China [69.6%] followed by Rest of Asia Pacific [34.5%] at Rank 2 , Japan [33%] at Rank 3 , Europe [30.1%] at Rank 4 and Americas [23.1%] at Rank 5.

11.2 Independent Ratings and Relative Value Indicators

+ Just Capital:

Apple Inc. was ranked 7 in the Just Capital annual list of top 100 ESG stocks for 2022; it was ranked 1 in the Technology Hardware sector.

Attractive dividend yield compared to sector average

AAPL Dividend Yield of 0.6% > Sector Ave 0.5%

The dividend yield of 0.6% for the stock is at a discount of 10% to the Just Capital sector average of 0.5%.

P/E - AAPL 26 > Sector Ave 20

AAPL P/E of 26 is overvalued compared to the Just Capital sector average of 20.

+ Top 50 BCG:

It was ranked 1 in Boston Consulting Group's list of Top 50 Most Innovative Companies 2021; unchanged over a year from the same rank 1 in 2020.

Attractive dividend yield compared to sector average

AAPL Dividend Yield of 0.6% > Sector Ave 0.4%

The dividend yield of 0.6% for the stock is at a discount of 22% to the Top 50 BCG sector average of 0.4%.

P/E - AAPL 26 > Sector Ave 20

AAPL P/E of 26 is overvalued compared to the Top 50 BCG sector average of 20.

+ Good Jobs First:

It received aggregate subsidies of $820.7 million from US federal, state and local awards in 2020. It was ranked 57 by aggregate subsidy values in the Good Jobs First list of Top 100 Parent companies in 2020.

Attractive dividend yield compared to sector average

AAPL Dividend Yield of 0.6% > Sector Ave 0.5%

The dividend yield of 0.6% for the stock is at a discount of 8% to the Good Jobs First sector average of 0.5%.

P/E - AAPL 26 > Sector Ave 16

AAPL P/E of 26 is overvalued compared to the Good Jobs First sector average of 16.

+ Carbon Disclosure Project (CDP):

It is one of 181 companies selected by the Carbon Disclosure Project (CDP) in their A List 2019. The CDP names the world's most pioneering companies leading on environmental transparency and performance.

+ Industryweek 1000:

It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 7.

+ Newsweek 500:

It was ranked 26 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 15% in Carbon productivity, 11.7% in Water productivity and 11.3% in Waste productivity.

+ Clarivate 100:

It is ranked in the Top 100 innovators by Clarivate Analytics.

+ PwC 100:

It was ranked 1 by MCap as at March 31, 2015 by PwC in the Top 100 Global companies; an improvement over 6 years from rank 33 as at March 31, 2009.

+ Citi Top 50:

It was ranked in Citi's Top 50 global cash cows with reinvest-to-payout ratio of 0.28.

+ PwC Top100 Software Leaders:

It is the 28th largest by revenue and largest by MCap among the PwC Global Software Leaders.

11.3 Independent Ratings of Directors

+ Timothy D. Cook- Glassdoor Ranking:

Timothy D. Cook was ranked 32 in the Glassdoor Employee Review's list of 100 Top CEOs in the United States for 2021.

+ Timothy D. Cook- Bloomberg Pay Index Ranking:

Timothy D. Cook was ranked 8 in the Bloomberg Pay Index list in the United States for 2020, a deterioration from rank 2 in 2019. According to Bloomberg Pay Index, Timothy D. Cook's total compensation had increased by (98.2%) $131.3 million from $133.7 million to $265 million in 2020.

+ Timothy D. Cook- Harvard Business Ranking:

Timothy D. Cook was ranked 62 in the Harvard Business Review's list of 100 Best-Performing CEO's in the world for 2019.

11.4 Segment Information

$$
Description2021-09-25% of Total2020-09-26% of TotalGrowth(%)
Net sales by category:-----
iPhone(1)192 B52.5137.8 B50.239.3
Mac(1)35.2 B9.628.6 B10.422.9
iPad(1)31.9 B8.723.7 B8.634.3
Wearables Home and Accessories(1)(2)38.4 B10.530.6 B11.225.3
Services(3)68.4 B18.753.8 B19.627.3
Total365.8 B100274.5 B10033.3

(1)Products net sales include amortization of the deferred value of unspecified software upgrade rights which are bundled in the sales price of the respective product.

(2)Wearables Home and Accessories net sales include sales of AirPods Apple TV Apple Watch Beats products HomePod iPod touch and accessories.

(3)Services net sales include sales from the Company's advertising AppleCare cloud digital content payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products.

Top Segments by Revenue and rank

In FY 2021, the top earner of Revenue was iPhone [52.5%] followed by Services [18.7%] at Rank 2 , Wearables Home and Accessories [10.5%] at Rank 3 , Mac [9.6%] at Rank 4 and iPad [8.7%] at Rank 5.

Top Segments by Revenue growth and rank

In FY 2021, revenue growth was highest in iPhone [39.3%] followed by iPad [34.3%] at Rank 2 , Services [27.3%] at Rank 3 , Wearables Home and Accessories [25.3%] at Rank 4 and Mac [22.9%] at Rank 5.

Regional Information

$$
Description2021-09-25% of Total2020-09-26% of TotalGrowth(%)
Net sales by reportable segment-----
Americas153.3 B41.9124.6 B45.423.1
Europe89.3 B24.468.6 B2530.1
Greater China68.4 B18.740.3 B14.769.6
Japan28.5 B7.821.4 B7.833
Rest of Asia Pacific26.4 B7.219.6 B7.134.5
Total365.8 B100274.5 B10033.3

Top Revenue Segments by Region and rank

In FY 2021, the top regional earner of Revenue was Americas [41.9%] followed by Europe [24.4%] at Rank 2 , Greater China [18.7%] at Rank 3 , Japan [7.8%] at Rank 4 and Rest of Asia Pacific [7.2%] at Rank 5.

Top Regional Segments by Revenue growth and rank

In FY 2021, revenue growth was highest in Greater China [69.6%] followed by Rest of Asia Pacific [34.5%] at Rank 2 , Japan [33%] at Rank 3 , Europe [30.1%] at Rank 4 and Americas [23.1%] at Rank 5.

11.5 Contact Details

Websitehttp://www.apple.com
Physical Address1 Infinite Loop,Cupertino,CA,95014
Phone+1 408 996-1010
Fax+1 408 974-2483
Emailinvestor_relations@apple.com

11.6 U.S. Industry & Sector

Classification LevelName of Sector
Business SectorTechnology Equipment
Industry GroupComputers, Phones & Household Electronics
IndustryComputer Hardware
ActivityComputer Hardware - NEC*
Economic SectorTechnology

* NEC: Not elsewhere classified

11.7 North American Industry Classification System [NAICS]

Code: 334220

Industry Title: Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

SECTION 12 FINANCIALS H1/2022, FY 2021

12.1 Half-Yearly Financials

Apple EPS gains 17.4%

Release Date: May 03, 2022

Apple (NASDAQ:AAPL) announced EPS of $3.65 for the half year-ended 26 March 2022, up 17.4% from $3.11 in the previous corresponding period.

Half-Yearly Report (H1 2022)

Compared with the Previous Corresponding Period [PCP; H/27 Mar 2021], year-over-year [y.o.y.] Revenue was up 10% and Net Profit was up 13.8%.

Half year-ended26 Mar 202227 Mar 2021
EPS, $3.63.1
PCP growth in EPS %17.4551
Revenue, $ billion221201
PCP growth in Revenue %10.033.9
Net Profit, $ billion59.652.4
PCP growth in Net Profit %13.856

12.2 Financials, FY 2021 [year-ended 25 September 2021 ]

Apple Net Profit up 65%

Release Date: October 29, 2021

Apple (NASDAQ:AAPL) reported net profit for the year-ended 25 September 2021 [FY2021] of $94.7b, up 65% from $57.4b in the previous year [FY2020]. Earnings per share (EPS) were up 71% from $3.31 in FY2020 to $5.67 in FY2021.

12.3 Annual growth in Revenue, Net Profit and EPS

Year-ended25 September [FY/2021]26 September [FY/2020]
Revenue, $ Billion366275
Growth in Revenue %33.35.5
Net Profit, $ Billion94.757.4
Growth in Net Profit %64.93.9
EPS, $5.673.31
Growth in EPS %71.310.7

Major changes compared with previous year (FY2021 vs FY2020):

Favourable Changes:

- Net profit up 64.9% from $57.4b to $94.7b

- Total revenue up 33.3% from $274.5b to $365.8b

- EBIT Margin up from 22.9% to 28.3%

- EBIT to total assets up from 20.7% to 31.1%

- Total revenue to total assets up from 0.8 to 1.0

Unfavourable Changes:

- Current ratio down 21.3% from 1.4 to 1.1

- Working capital to total assets down from 11.8% to 2.7%

- Retained earnings to total assets down from 4.6% to 1.6%

- Total current assets to Total Assets down from 44.4% to 38.4%

Year-on-year comparison of Performance Ratios [FY2021 vs FY2020]

September 25FY2021FY2020Change (%)
Return on Equity (%)150.187.9Up 70.8
Return on Assets (%)2717.7Up 52.5
Total debt to net tangible assets (%)9.57.6Up 25
Common Size Ratios by Assets %
Long-term investments to Total Assets 36.4 31.1 Up 16.9
Current Debtors to Total Assets 14.7 11.6 Up 27.2

Five-year record of growth and performance:

In the last 5 years Total Revenue averaged $279.1B, EBITDA averaged $75.8B and Net Profit averaged $63B. Compound Annual Growth Rate (CAGR) averaged 11.1% for Total Revenue, 15.7% for Net Profit and 12.2% for EBITDA.

DescriptionAnnual ($ B)5-year Avg ($ B)5-year CAGR %
Total Revenue365.8279.111.1
EBITDA109.275.812.2
Operating Profit109.275.812.2
Net Profit94.76315.7

Five-year record of EBITDA, Operating Profit, Net Profit, ROA and ROCE

In 2021 Net Profit Margin of 24.5% was above its 5-year Avg of 22.3% (All Figures in %)

Description20215-year Avg
EBITDA Margin29.927
Operating Profit Margin28.327
Net Profit Margin24.522.3
Return on Assets2718
Return on Capital Employed48.432

SECTION 13 TAX & DIVIDEND

13.1 Average Income Tax Paid (Past 5 Years)

In the past 5 years, Income Tax as % of profit before tax decreased from 24.6% to 13.3% and Income Tax as % of operating cash flow decreased from 24.6% to 13.3%.

Description202120202019201820175-yr avg10-yr avg
As % of profit before tax13.314.415.918.324.617.321.6
As % of operating cash flow13.314.415.918.324.617.321.5

13.2 Footprint of Low Tax Subsidiaries

Corporate Tax rate of Apple in country of incorporation:

SubsidiaryIncorporated inCorporate Tax Rate (%)
Apple Sales InternationalIreland12.5
Apple Operations InternationalIreland12.5
Apple Operations EuropeIreland12.5

13.3 Dividend History

In the past 5 years annual dividends have increased by 23.5c from 65.5c to 89.0c. Based on a start date of 5 years ago, there has been no decline in dividends over the last 5 years.

Date PaidValue (c)Type
06 May 202223Quarterly
04 Feb 202222Quarterly
05 Nov 202122Quarterly
06 Aug 202122Quarterly
Tr 12 Months89
2020 - 202183.5
2019 - 202078.25
2018 - 201974
2017 - 201865.5

SECTION 14 TOP MANAGEMENT

14.1 Top Management

Top Management [Four top executives with tenure > 6 yrs]

NameDesignationSince Appointment
Timothy D. CookChief Executive Officer, Director10 Yrs, 11 Mos
Arthur D. LevinsonChairman, Director21 Yrs, 11 Mos
Luca MaestriChief Financial Officer, Senior Vice President8 Yrs, 3 Mos
Jeff WilliamsChief Operating Officer6 Yrs, 7 Mos

Top Management [One top executive's tenure Not Available]

NameDesignation
Katherine AdamsSenior Vice President, General Counsel

14.2 Profiles of Top Management

Timothy D. Cook

CEO & Director

Tim Cook, 59, has been Apple's Chief Executive Officer since August 2011 and was previously Apple's Chief Operating Officer since October 2005.

Mr. Cook joined Apple in March 1998 and served as Executive Vice President, Worldwide Sales and Operations from February 2002 to October 2005. From October 2000 to February 2002, Mr. Cook served as Senior Vice President, Worldwide Operations, Sales, Service and Support. From March 1998 to October 2000, Mr. Cook served as Senior Vice President, Worldwide Operations.

Among other qualifications, Mr. Cook brings to the Board extensive executive leadership experience in the technology industry, including the management of worldwide operations, sales, service, and support.

Other Current Public Company Directorships

NIKE, Inc.

Selected Directorships and Memberships

Board of Directors, The National Football Foundation & College Hall of Fame, Inc.

Board of Trustees, Duke University

Leadership Council, Malala Fund

Shareholder Value:

Creation of shareholder value in Apple:

Date of appointment: August 24, 2011

In the last 10 years the average annualized return to shareholders was 24.8%. The present value of $1,000 (PV1000) invested 10 years ago is now $9,174, a gain of $7,633 and dividend reinvested of $541.

Harvard Business Ranking:

Timothy D. Cook was ranked 62 in the Harvard Business Review's list of 100 Best-Performing CEO's in the world for 2019.

Bloomberg Pay Index Ranking:

Timothy D. Cook was ranked 8 in the Bloomberg Pay Index list in the United States for 2020, a deterioration from rank 2 in 2019. According to Bloomberg Pay Index, Timothy D. Cook's total compensation had increased by (98.2%) $131.3 million from $133.7 million to $265 million in 2020.

Glassdoor Ranking:

Timothy D. Cook was ranked 32 in the Glassdoor Employee Review's list of 100 Top CEOs in the United States for 2021.

Arthur D. Levinson

Chairman & Director

Art Levinson, 69, has served as the Chief Executive Officer of Calico, a company focused on health, aging, and well-being, since September 2013.

Dr. Levinson previously served as Chief Executive Officer of Genentech, Inc., a medical drug developer, from July 1995 to April 2009, and served as Genentech's Chairman from September 1999 to September 2014.

Among other qualifications, Dr. Levinson brings to the Board executive leadership experience, including his service as a chairman and chief executive officer of a large international public company, along with extensive financial expertise and brand marketing experience.

Selected Directorships and Memberships

Board of Directors, Broad Institute of Harvard and MIT

Board of Scientific Consultants, Memorial Sloan Kettering Cancer Center

Industrial Advisory Board, California Institute for Quantitative Biomedical Research

Advisory Council, Lewis-Sigler Institute for Integrative Genomics

Advisory Council, Princeton University Department of Molecular Biology

Science Advisory Board, Chan Zuckerberg Initiative

Shareholder Value:

Creation of shareholder value in Apple:

Date of appointment: August 15, 2000

In the last 20 years the average annualized return to shareholders was 39.3%. The present value of $1,000 (PV1000) invested 20 years ago is now $756,968, a gain of $711,345 and dividend reinvested of $44,623.

Luca Maestri

CFO & Senior Vice President

Mr. Maestri, 56, oversees Apple's accounting, business support, financial planning and analysis, treasury, real estate, investor relations, internal audit, and tax functions.

Luca joined Apple in March 2013 and assumed his current position in May 2014, after previously serving as Apple's Vice President and Corporate Controller. Prior to joining Apple, Luca was Executive Vice President, Chief Financial Officer of Xerox Corporation, a business services and technology company, from February 2011 to February 2013; Chief Financial Officer at Nokia Siemens Networks; and had a 20-year career with General Motors Corporation, including serving as Chief Financial Officer of GM Europe and GM Brazil.

Shareholder Value:

Creation of shareholder value in Apple:

Month of appointment: May 2014

In the last 5 years the average annualized return to shareholders was 36.8%. The present value of $1,000 (PV1000) invested 5 years ago is now $4,797, a gain of $3,533 and dividend reinvested of $263.

Jeff Williams

Chief Operating Officer

Jeff Williams is Apple's chief operating officer reporting to CEO Tim Cook. He oversees Apple's entire worldwide operations, as well as customer service and support. He leads Apple's renowned design team and the software and hardware engineering for Apple Watch. Jeff also drives the company's health initiatives, pioneering new technologies and advancing medical research to empower people to better understand and manage their health and fitness.

Jeff played a key role in Apple's entry into the mobile phone market with the launch of iPhone, and since 2010 has led worldwide operations for all products. He also led the engineering development of Apple Watch. Jeff joined Apple in 1998 as head of Worldwide Procurement.

Prior to Apple, Jeff worked for the IBM Corporation from 1985 to 1998 in a number of operations and engineering roles. He holds a bachelor's degree in Mechanical Engineering from North Carolina State University and an MBA from Duke University.

Shareholder Value:

Creation of shareholder value in Apple:

Date of appointment: December 17, 2015

In the last 5 years the average annualized return to shareholders was 36.8%. The present value of $1,000 (PV1000) invested 5 years ago is now $4,797, a gain of $3,533 and dividend reinvested of $263.

Katherine Adams

Senior Vice President

Kate Adams is Apple's general counsel and senior vice president of Legal and Global Security, reporting to CEO Tim Cook. Kate serves on the company's executive team and oversees all legal matters, including corporate governance, intellectual property, litigation and securities compliance, global security and privacy. Kate joined Apple from Honeywell in 2017, where she worked for 14 years, most recently as senior vice president and general counsel. At Honeywell, Kate was in charge of the organization's global legal strategy across more than 100 countries.

Prior to joining Honeywell, Kate was a partner at Sidley Austin LLP in New York. Earlier in her career, she served as a law clerk for Supreme Court Justice Sandra Day O'Connor; as trial attorney for the United States Department of Justice, Appellate Section, Environment and Natural Resources division; and as law clerk for Stephen Breyer, then chief judge of the U.S. Court of Appeals for the First Circuit.

Kate earned a bachelor's degree in Comparative Literature from Brown University and a law degree from the University of Chicago Law School.

SECTION 15 BOARD OF DIRECTORS

15.1 Board Of Directors

Board Of Directors [Two directors with tenure > 6 yrs]

NameSince Appointment
Ronald D. Sugar11 Yrs, 8 Mos
James A. Bell6 Yrs, 10 Mos

Board Of Directors [One director with tenure < 1 yr]

NameSince Appointment
Alex Gorsky8 Mos

Board Of Directors [Three directors tenure Not Available]

Name
Sue Wagner
Andrea Jung
Monica Lozano

15.2 Profiles of Board of Directors

Alex Gorsky

Director

During Gorsky's tenure as CEO and chairman, Johnson & Johnson has become the world's largest healthcare company and one of the foremost innovators in research and development for emerging health technologies.

Gorsky began his tenure at Johnson & Johnson in 1988, accumulating a broad range of experience in sales, management, and marketing before becoming CEO in 2012. Gorsky has made innovation and technology key priorities, with groundbreaking investments that have helped shape the future of the pharmaceutical, medical device, and consumer health sectors.

An experienced leader in healthcare and business, Gorsky directs a global team of more than 130,000 at Johnson & Johnson. He is also a member of the Business Roundtable's board of directors and the chairman of its Corporate Governance committee. Gorsky serves on the boards of IBM, Travis Manion Foundation, and The Wharton School of the University of Pennsylvania.

As a former captain in the US Army, Gorsky has been a vocal advocate for improving mental health services for veterans and their families. He has also been a trailblazer for diversity and inclusion - helping Johnson & Johnson become a nationally recognized leader, and expanding parental paid leave and mentorship programs for employees across the company. Gorsky holds a Bachelor of Science from the US Military Academy at West Point, New York, and spent six years in the US Army, finishing his military career with the rank of captain. Gorsky also earned a Master of Business Administration from The Wharton School of the University of Pennsylvania in 1996.

Shareholder Value:

Creation of shareholder value in Apple:

Since appointment as Director: The present value of $1,000 invested on the appointment date of November 09, 2021 at close price of $150.40 is $1,075, including a capital gain of $70 and dividend reinvested of $5.

Ronald D. Sugar

Director

Ron Sugar, 71, is the retired Chairman of the Board and Chief Executive Officer of Northrop Grumman Corporation, a global security company. Dr. Sugar served in this role from April 2003 to June 2010 and served as President and Chief Operating Officer from 2001 to 2003. Previous to Northrop Grumman, he held executive positions at Litton Industries and TRW Inc., where he served as Chief Financial Officer.

Among other qualifications, Dr. Sugar brings to the Board executive leadership experience as a chairman and chief executive officer of a large international public company, financial expertise as a former chief financial officer, understanding of advanced technology, experience with government relations and public policy, and a global business perspective from his service on other boards.

Other Current Public Company Directorships*

Air Lease Corporation

Amgen Inc.

Chevron Corporation

Uber Technologies, Inc.

Selected Directorships and Memberships

Member, National Academy of Engineering

Board of Trustees, University of Southern California

Board of Directors, Los Angeles Philharmonic Association

Shareholder Value:

Creation of shareholder value in Apple:

Date of appointment: November 17, 2010

In the last 10 years the average annualized return to shareholders was 24.8%. The present value of $1,000 (PV1000) invested 10 years ago is now $9,174, a gain of $7,633 and dividend reinvested of $541.

James A. Bell

Director

James Bell, 72, is the retired Executive Vice President, Corporate President and Chief Financial Officer of The Boeing Company, an aerospace company. Mr. Bell served in this role from June 2008 to April 2012, having previously served as Executive Vice President, Finance and Chief Financial Officer from November 2003 to June 2008, and as Senior Vice President of Finance and Corporate Controller from October 2000 to November 2003. From 1992 to 2000, Mr. Bell held a series of positions with increasing responsibility at Boeing.

Among other qualifications, Mr. Bell brings to the Board financial and accounting expertise as a former chief financial officer of a large international public company, experience in strategic planning and leadership of complex organizations, and a global business perspective from his service on other boards.

Other Current Public Company Directorships

JPMorgan Chase & Co.

CDW Corporation

Dow Inc.

Selected Directorships and Memberships

Board of Trustees, Rush University Medical Center

Former Public Company Directorships Within the Last Five Years

DowDupont Inc.

Shareholder Value:

Creation of shareholder value in Apple:

Date of appointment: October 01, 2015

In the last 5 years the average annualized return to shareholders was 36.8%. The present value of $1,000 (PV1000) invested 5 years ago is now $4,797, a gain of $3,533 and dividend reinvested of $263.

Sue Wagner

Director

Sue Wagner, 59, is a co-founder of BlackRock, Inc., an asset management company. Ms. Wagner served as BlackRock's Vice Chairman from January 2006 until her retirement in July 2012, and also served as a member of BlackRock's Global Executive Committee and Global Operating Committee. During her tenure at BlackRock, Ms. Wagner served as BlackRock's Chief Operating Officer and Head of Corporate Strategy, and led the alternative investments and international client businesses.

Among other qualifications, Ms. Wagner brings to the Board operational experience, including her service as chief operating officer of a large multinational public company, along with extensive financial expertise and experience in the financial services industry, and a global business perspective from her service on other boards.

Other Current Public Company Directorships

BlackRock, Inc.

Swiss Re

Selected Directorships and Memberships

Board of Directors, Color Genomics, Inc.

Board of Trustees, Wellesley College

Andrea Jung

Director

Andrea Jung, 62, has served as the President and Chief Executive Officer of Grameen America LLC, a nonprofit microfinance organization, since April 2014, where she also serves on the Board of Directors.

Ms. Jung previously served as Executive Chairman of Avon Products, Inc., a personal care products company, from April 2012 to December 2012, and as Chairman of the Board of Avon from September 2001 to April 2012. Ms. Jung served as Chief Executive Officer of Avon from November 1999 to April 2012, and served as a member of the Board of Avon from January 1998 to December 2012.

Among other qualifications, Ms. Jung brings to the Board executive leadership experience, including her service as a chairman and chief executive officer of a large international public company, along with extensive brand marketing and consumer products experience, and a global business perspective from her service on other boards.

Other Current Public Company Directorships

Unilever PLC and Unilever N.V.

Wayfair Inc.

Selected Directorships and Memberships

Board of Directors, Rockefeller Capital Management

Board of Directors, JUST Capital

Former Public Company Directorships Within the Last Five Years

Daimler AG

General Electric Company

SECTION 16 INSIDER OWNERSHIP AND SELLING IN THE PAST 12 MONTHS

16.1 Shares Held by Insiders as on Aug 02, 2022 (Value computed at price $160.99)

NameShares HeldValue, $
Arthur D. Levinson4,588,724738,738,677
Timothy D. Cook3,279,726528,003,089
Jeff Williams489,66278,830,685
Katherine Adams452,33472,821,251
Luca Maestri207,40833,390,614
Andrea Jung139,59422,473,238
Ronald D. Sugar104,25816,784,495
James A. Bell34,9905,633,040
Alex Gorsky48678,241
Total9,297,1821,496,753,330

Arthur D. Levinson now has a beneficial interest in 4,588,724 Apple shares worth $738.7 million.

Nature of OwnershipShares HeldValue, $
Equity-Non-Derivative Securities
NA4,532,724729,723,237
By Spouse56,0009,015,440
Total (Equity)4,588,724738,738,677

Timothy D. Cook now has a beneficial interest in 3,279,726 Apple shares worth $528 million.

Jeff Williams now has a beneficial interest in 489,662 Apple shares worth $78.8 million.

Katherine Adams now has a beneficial interest in 452,334 Apple shares worth $72.8 million.

Luca Maestri now has a beneficial interest in 207,408 Apple shares worth $33.4 million.

Andrea Jung now has a beneficial interest in 139,594 Apple shares worth $22.5 million.

Nature of OwnershipShares HeldValue, $
Equity-Non-Derivative Securities
By GRAT113,49218,271,077
NA26,1024,202,161
Total (Equity)139,59422,473,238

Ronald D. Sugar now has a beneficial interest in 104,258 Apple shares worth $16.8 million.

James A. Bell now has a beneficial interest in 34,990 Apple shares worth $5.6 million.

Alex Gorsky now has a beneficial interest in 486 Apple shares worth $78,241.

16.2 Insider selling Summary in the past 12 months

NameNo. of SharesPrice, $Value, $
Cook Timothy D [CEO]2,386,440148.6354,568,479
Williams Jeffrey E [COO]271,730154.041,846,429
Maestri Luca [CFO]165,829148.624,645,506
Adams Katherine L. [Senior Vice President]92,000158.814,609,379
Levinson Arthur D [Chairman]1,986173.3344,154
Total2,917,985149.4436,013,947

SECTION 17 FINANCIALS AS REPORTED H1/2022, FY 2021, PAST 7 YEARS, NOTES

17.1 Financials as reported (Half Year)

SEC FILING 10-Q RESULTS OF OPERATIONS AND FINANCIAL CONDITION

(In $ Million, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED

Description$ Million$ Million
Mar 26, 2022Mar 27, 2021Change %
Net sales:
Products181,886168,361Up 8.0
Services39,33732,662Up 20.4
Total net sales221,223201,023Up 10.0
Cost of sales:
Products113,599108,577Up 4.6
Services10,82210,039Up 7.8
Total cost of sales124,421118,616Up 4.9
Gross margin96,80282,407Up 17.5
Operating expenses:
Research and development12,69310,425Up 21.8
Selling general and administrative12,64210,945Up 15.5
Total operating expenses25,33521,370Up 18.6
Operating income71,46761,037Up 17.1
Other income/(expense) net-87553Deterioration
Income before provision for income taxes71,38061,590Up 15.9
Provision for income taxes11,7409,205Up 27.5
Net income59,64052,385Up 13.8
Earnings per share:
Basic$3.65$3.11Up 17.4
Diluted$3.62$3.08Up 17.5
Shares used in computing earnings per share:
Basic16,335,263,00016,844,298,000Down 3.0
Diluted16,461,304,00017,021,423,000Down 3.3

BALANCE SHEET AS REPORTED

Description$ Million$ Million
Mar 26, 2022Sep 26, 2021Change %
ASSETS:
Current assets:
Cash and cash equivalents28,09834,940Down 19.6
Marketable securities23,41327,699Down 15.5
Accounts receivable net20,81526,278Down 20.8
Inventories5,4606,580Down 17.0
Vendor non-trade receivables24,58525,228Down 2.5
Other current assets15,80914,111Up 12.0
Total current assets118,180134,836Down 12.4
Non-current assets:
Marketable securities141,219127,877Up 10.4
Property plant and equipment net39,30439,440Down 0.3
Other non-current assets51,95948,849Up 6.4
Total non-current assets232,482216,166Up 7.5
Total assets350,662351,002Down 0.1
LIABILITIES AND SHAREHOLDERS EQUITY:
Current liabilities:
Accounts payable52,68254,763Down 3.8
Other current liabilities50,24847,493Up 5.8
Deferred revenue7,9207,612Up 4.0
Commercial paper6,9996,000Up 16.7
Term debt9,6599,613Up 0.5
Total current liabilities127,508125,481Up 1.6
Non-current liabilities:
Term debt103,323109,106Down 5.3
Other non-current liabilities52,43253,325Down 1.7
Total non-current liabilities155,755162,431Down 4.1
Total liabilities283,263287,912Down 1.6
Commitments and contingencies
Shareholders equity:
Common stock and additional paid-in capital 0.00001 par value: 50400000 shares authorized; 16207568 and 16426786 shares issued and outstanding respectively61,18157,365Up 6.7
Retained earnings12,7125,562Up 128.6
Accumulated other comprehensive income/(loss)-6,494163Deterioration
Total shareholders equity67,39963,090Up 6.8
Total liabilities and shareholders equity350,662351,002Down 0.1

CASH FLOW AS REPORTED

Description$ Million$ Million
Mar 26, 2022Mar 27, 2021Change %
Cash cash equivalents and restricted cash beginning balances35,92939,789Down 9.7
Operating activities:
Net income59,64052,385Up 13.8
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization5,4345,463Down 0.5
Share-based compensation expense4,5174,001Up 12.9
Deferred income tax expense/(benefit)1,088-207Recovery
Other-20-474Improved 95.8
Changes in operating assets and liabilities:
Accounts receivable net5,542-2,347Recovery
Inventories1,065-1,226Recovery
Vendor non-trade receivables6436,792Down 90.5
Other current and non-current assets-3,542-4,333Improved 18.3
Accounts payable-1,750-1,997Improved 12.4
Deferred revenue6271,642Down 61.8
Other current and non-current liabilities1,8883,045Down 38.0
Cash generated by operating activities75,13262,744Up 19.7
Investing activities:
Purchases of marketable securities-61,987-74,424Improved 16.7
Proceeds from maturities of marketable securities18,00039,605Down 54.6
Proceeds from sales of marketable securities24,66821,645Up 14.0
Payments for acquisition of property plant and equipment-5,317-5,769Improved 7.8
Payments made in connection with business acquisitions net-167-9Deterioration 1,755.6
Other-568
Cash used in investing activities-25,371-18,952Deterioration 33.9
Financing activities:
Payments for taxes related to net share settlement of equity awards-3,218-3,160Deterioration 1.8
Payments for dividends and dividend equivalents-7,327-7,060Deterioration 3.8
Repurchases of common stock-43,109-43,323Improved 0.5
Proceeds from issuance of term debt net13,923
Repayments of term debt-3,750-4,500Improved 16.7
Proceeds from commercial paper net99922Up 4,440.9
Other-105523Deterioration
Cash used in financing activities-56,510-43,575Deterioration 29.7
Increase/(Decrease) in cash cash equivalents and restricted cash-6,749217Deterioration
Cash cash equivalents and restricted cash ending balances29,18040,006Down 27.1

17.2 Financials as reported (FY 2021 [year-ended 25 September 2021 ])

10-K RESULTS OF OPERATIONS AND FINANCIAL CONDITION

(In $ Million, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED (FY 2021 [year-ended 25 September 2021 ])

Description$ Million$ Million
Sep 25, 2021Sep 26, 2020Change %
Net sales:
Products297,392220,747Up 34.7
Services68,42553,768Up 27.3
Total net sales365,817274,515Up 33.3
Cost of sales:
Products192,266151,286Up 27.1
Services20,71518,273Up 13.4
Total cost of sales212,981169,559Up 25.6
Gross margin152,836104,956Up 45.6
Operating expenses:
Research and development21,91418,752Up 16.9
Selling, general and administrative21,97319,916Up 10.3
Total operating expenses43,88738,668Up 13.5
Operating income108,94966,288Up 64.4
Other income/(expense), net258803Down 67.9
Income before provision for income taxes109,20767,091Up 62.8
Provision for income taxes14,5279,680Up 50.1
Net income94,68057,411Up 64.9
Earnings per share:
Basic$5.67$3.31Up 71.3
Diluted$5.61$3.28Up 71.0
Shares used in computing earnings per share:
Basic16,701,272,00017,352,119,000Down 3.8
Diluted16,864,919,00017,528,214,000Down 3.8
Net income94,68057,411Up 64.9
Other comprehensive income/(loss):
Change in foreign currency translation, net of tax50188Up 469.3
Change in unrealized gains/losses on derivative instruments, net of tax:
Change in fair value of derivative instruments3279Down 59.5
Adjustment for net (gains)/losses realized and included in net income1,003-1,264Recovery
Total change in unrealized gains/losses on derivative instruments1,035-1,185Recovery
Change in unrealized gains/losses on marketable debt securities, net of tax:
Change in fair value of marketable debt securities-6941,202Deterioration
Adjustment for net (gains)/losses realized and included in net income-273-63Deterioration 333.3
Total change in unrealized gains/losses on marketable debt securities-9671,139Deterioration
Total other comprehensive income/(loss)56942Up 1,254.8
Total comprehensive income95,24957,453Up 65.8

BALANCE SHEET AS REPORTED (FY 2021 [year-ended 25 September 2021 ])

Description$ Million$ Million
Sep 25, 2021Sep 26, 2020Change %
Current assets:
Cash and cash equivalents34,94038,016Down 8.1
Marketable securities27,69952,927Down 47.7
Accounts receivable, net26,27816,120Up 63.0
Inventories6,5804,061Up 62.0
Vendor non-trade receivables25,22821,325Up 18.3
Other current assets14,11111,264Up 25.3
Total current assets134,836143,713Down 6.2
Non-current assets:
Marketable securities127,877100,887Up 26.8
Property, plant and equipment, net39,44036,766Up 7.3
Other non-current assets48,84942,522Up 14.9
Total non-current assets216,166180,175Up 20.0
Total assets351,002323,888Up 8.4
Current liabilities:
Accounts payable54,76342,296Up 29.5
Other current liabilities47,49342,684Up 11.3
Deferred revenue7,6126,643Up 14.6
Commercial paper6,0004,996Up 20.1
Term debt9,6138,773Up 9.6
Total current liabilities125,481105,392Up 19.1
Non-current liabilities:
Term debt109,10698,667Up 10.6
Other non-current liabilities53,32554,490Down 2.1
Total non-current liabilities162,431153,157Up 6.1
Total liabilities287,912258,549Up 11.4
Commitments and contingencies
Shareholders equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,426,786 and 16,976,763 shares issued and outstanding, respectively57,36550,779Up 13.0
Retained earnings5,56214,966Down 62.8
Accumulated other comprehensive income/(loss)163-406Recovery
Total shareholders equity63,09065,339Down 3.4
Total liabilities and shareholders equity351,002323,888Up 8.4

CASH FLOW AS REPORTED (FY 2021 [year-ended 25 September 2021 ])

Description$ Million$ Million
Sep 25, 2021Sep 26, 2020Change %
Cash, cash equivalents and restricted cash, beginning balances39,78950,224Down 20.8
Operating activities:
Net income94,68057,411Up 64.9
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization11,28411,056Up 2.1
Share-based compensation expense7,9066,829Up 15.8
Deferred income tax benefit-4,774-215Deterioration 2,120.5
Other-147-97Deterioration 51.5
Changes in operating assets and liabilities:
Accounts receivable, net-10,1256,917Deterioration
Inventories-2,642-127Deterioration 1,980.3
Vendor non-trade receivables-3,9031,553Deterioration
Other current and non-current assets-8,042-9,588Improved 16.1
Accounts payable12,326-4,062Recovery
Deferred revenue1,6762,081Down 19.5
Other current and non-current liabilities5,7998,916Down 35.0
Cash generated by operating activities104,03880,674Up 29.0
Investing activities:
Purchases of marketable securities-109,558-114,938Improved 4.7
Proceeds from maturities of marketable securities59,02369,918Down 15.6
Proceeds from sales of marketable securities47,46050,473Down 6.0
Payments for acquisition of property, plant and equipment-11,085-7,309Deterioration 51.7
Payments made in connection with business acquisitions, net-33-1,524Improved 97.8
Purchases of non-marketable securities-131-210Improved 37.6
Proceeds from non-marketable securities38792Up 320.7
Other-608-791Improved 23.1
Cash generated by/(used in) investing activities-14,545-4,289Deterioration 239.1
Financing activities:
Proceeds from issuance of common stock1,105880Up 25.6
Payments for taxes related to net share settlement of equity awards-6,556-3,634Deterioration 80.4
Payments for dividends and dividend equivalents-14,467-14,081Deterioration 2.7
Repurchases of common stock-85,971-72,358Deterioration 18.8
Proceeds from issuance of term debt, net20,39316,091Up 26.7
Repayments of term debt-8,750-12,629Improved 30.7
Proceeds from/(Repayments of) commercial paper, net1,022-963Recovery
Other-129-126Deterioration 2.4
Cash used in financing activities-93,353-86,820Deterioration 7.5
Increase/(Decrease) in cash, cash equivalents and restricted cash-3,860-10,435Improved 63.0
Cash, cash equivalents and restricted cash, ending balances35,92939,789Down 9.7
Supplemental cash flow disclosure:
Cash paid for income taxes, net25,3859,501Up 167.2
Cash paid for interest2,6873,002Down 10.5

17.3 Download APPLE Financials Past 7 Years

DescriptionSep 21Sep 20Sep 19Sep 18Sep 17Sep 16Sep 15
Income Statement
Revenue per share21.6915.6613.9953.1243.6539.2140.34
Tax (B)14.59.710.513.415.715.719.1
Net profit (B)94.757.455.359.548.445.753.4
EPS5.673.312.9932.322.092.32
Balance Sheet
Equity Share Capital (B)63.165.390.5107.1134128.2119.4
Retained Earnings (B)5.61545.966.998.29791.9
Total Debt (B)65612128764.3
Total Assets (B)351323.9338.5365.7375.3321.7290.3
Current Asset (B)134.8143.7162.8131.3128.6106.989.4
Fixed Asset (B)39.436.837.441.333.82722.5
Working Capital (B)9.438.357.115.427.827.98.8
Cash Flow
Operating Cash Flow (B)10480.769.477.464.265.881.3
Investing Cash Flow (B)(14.5)(4.3)45.916.1(46.4)(46)(56.3)
Financing Cash Flow (B)(93.4)(86.8)(91)(87.9)(18)(20.5)(17.7)
Net Cash Flow(3.9 B)(10.4 B)24.3 B5.6 B(195 M)(636 M)7.3 B

17.4 NOTES

Commitments and Contingencies

Concentrations of Supply

Concentrations in the Available Sources of Supply of Materials and Product

Although most components essential to the Companys business are generally available from multiple sources, certain components are currently obtained from single or limited sources. The Company also competes for various components with other participants in the markets for smartphones, personal computers, tablets and other electronic devices. Therefore, many components used by the Company, including those that are available from multiple sources, are at times subject to industry-wide shortage and significant commodity pricing fluctuations.

The Company uses some custom components that are not commonly used by its competitors, and new products introduced by the Company often utilize custom components available from only one source. When a component or product uses new technologies, initial capacity constraints may exist until the suppliers yields have matured or their manufacturing capacities have increased. The continued availability of these components at acceptable prices, or at all, may be affected if suppliers decide to concentrate on the production of common components instead of components customized to meet the Companys requirements.

The Company has entered into agreements for the supply of many components; however, there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms, or at all.

Substantially all of the Companys hardware products are manufactured by outsourcing partners that are located primarily in Asia, with some Mac computers manufactured in the U.S. and Ireland.

Unconditional Purchase Obligations

The Company has entered into certain offbalance sheet commitments that require the future purchase of goods or services (unconditional purchase obligations). The Companys unconditional purchase obligations primarily consist of payments for content creation, Internet and telecommunications services and supplier arrangements. As of June26, 2021, the Companys total future payments under noncancelable unconditional purchase obligations having a remaining term in excess of one year were $8.8 billion.

Contingencies

The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. When a loss related to a legal proceeding or claim is probable and reasonably estimable, the Company accrues its best estimate for the ultimate resolution of the matter. If one or more legal matters were resolved against the Company in a reporting period for amounts above managements expectations, the Companys financial condition and operating results for that reporting period could be materially adversely affected. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims, except for the following matters:

VirnetX

VirnetX, Inc. (VirnetX) filed a lawsuit against the Company alleging that certain of the Companys products infringe on patents owned by VirnetX. On April 11, 2018, a jury returned a verdict against the Company in the U.S. District Court for the Eastern District of Texas (the Eastern Texas District Court). The Company appealed the verdict to the U.S. Court of Appeals for the Federal Circuit, which remanded the case back to the Eastern Texas District Court, where a re-trial was held in October 2020. The jury returned a verdict against the Company and awarded damages of $503million, which the Company has appealed. The Company has challenged the validity of the patents at issue in the re-trial at the U.S. Patent and Trademark Office (the PTO), and the PTO has declared the patents invalid, subject to further appeal by VirnetX.

iOS Performance Management Cases

On April 5, 2018, several U.S. federal actions alleging violation of consumer protection laws, fraud, computer intrusion and other causes of action related to the Companys performance management feature used in its iPhone operating systems, introduced to certain iPhones in iOS updates 10.2.1 and 11.2, were consolidated through a Multidistrict Litigation process into a single action in the U.S. District Court for the Northern District of California (the Northern California District Court). On February 28, 2020, the parties in the Multidistrict Litigation reached a settlement to resolve the U.S. federal and California state class actions. On March 18, 2021, the Northern California District Court granted final approval of the Multidistrict Litigation settlement, which will result in an aggregate payment of $310million to settle all claims. The Company continues to believe that its iPhones were not defective, that the performance management feature introduced with iOS updates 10.2.1 and 11.2 was intended to, and did, improve customers user experience, and that the Company did not make any misleading statements or fail to disclose any material information.

French Competition Authority

On March 16, 2020, the French Competition Authority (FCA) announced its decision that aspects of the Companys sales and distribution practices in France violate French competition law and issued a fine of 1.1 billion. The Company strongly disagrees with the FCAs decision and has appealed.

Optis

Optis Wireless Technology, LLC and related entities (Optis) filed a lawsuit in the U.S. District Court for the Eastern District of Texas against the Company alleging that certain of the Companys products infringe on patents owned by Optis. On August 11, 2020, a jury returned a verdict against the Company and awarded damages of $506million. In post-trial proceedings, the damages portion of the verdict was set aside, and a retrial was scheduled for August 2021. The case remains pending further proceedings.

Unconditional Purchase Obligations

The Company has entered into certain offbalance sheet commitments that require the future purchase of goods or services (unconditional purchase obligations). The Companys unconditional purchase obligations primarily consist of payments for content creation, Internet and telecommunications services and supplier arrangements. As of June26, 2021, the Companys total future payments under noncancelable unconditional purchase obligations having a remaining term in excess of one year were $8.8 billion.

AdjustedUnrealized
CostGains
Cash14,853
Level 1 (1):
Money market funds9,568
Mutual funds1598
Subtotal9,7278
Level 2 (2):
U.S. Treasury securities22,582133
U.S. agency securities7,5423
Non-U.S. government securities20,007252
Certificates of deposit and time deposits7,099
Commercial paper2,056
Corporate debt securities85,2211,444
Municipal securities98415
Mortgage- and asset-backed securities22,233191
Subtotal167,7242,038
Total (3)192,3042,046

Debt

Term Debt

As of June26, 2021, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $113.2 billion (collectively the Notes). The Notes are senior unsecured obligations and interest is payable in arrears. The following table provides a summary of the Companys term debt as of June26, 2021 and September26, 2020:

Maturities26-Jun-2126-Sep-20
(calendar year)AmountEffectiveAmountEffective
(in millions)Interest Rate(in millions)Interest Rate
2013 2020 debt issuances:
Floating-rate notes2,022$1,7500.51% 0.66%$2,2500.60% 1.39%
Fixed-rate 0.000% 4.650% notes2021 206097,4430.03% 4.78%103,8280.03% 4.78%
2021 debt issuance:
Fixed-rate 0.700% 2.800% notes2026 206114,0000.75% 2.81%%
Total term debt113,193106,078
Unamortized premium/(discount) and issuance costs, net-360-314
Hedge accounting fair value adjustments9581,676
Less: Current portion of term debt-8,039-8,773
Total non-current portion of term debt$105,752$98,667

Note 2 Revenue

Net sales disaggregated by significant products and services for the three- and six-month periods ended March 26, 2022 and March27, 2021 were as follows (in millions):

Three Months EndedSix Months Ended
March 26,March 27,March 26,March 27,
2,0222,0212,0222,021
iPhone(1)50,57047,938122,198113,535
Mac(1)10,4359,10221,28717,777
iPad(1)7,6467,80714,89416,242
Wearables, Home and Accessories(1)(2)8,8067,83623,50720,807
Services(3)19,82116,90139,33732,662
Total net sales(4)97,27889,584221,223201,023
(1)Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product.
(2)Wearables, Home and Accessories net sales include sales of AirPods, Apple TV, Apple Watch, Beatsproducts, HomePod mini, iPod touchand accessories.
(3)Services net sales include sales from the Companys advertising, AppleCare, cloud, digital content, payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products.
(4)Includes 3.0billion of revenue recognized in the three months ended March26, 2022 that was included in deferred revenue as of December25, 2021, 2.7billion of revenue recognized in the three months ended March27, 2021 that was included in deferred revenue as of December26, 2020, 4.8billion of revenue recognized in the six months ended March26, 2022 that was included in deferred revenue as of September25, 2021, and 4.1billion of revenue recognized in the six months ended March27, 2021 that was included in deferred revenue as of September26, 2020.
The Companys proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 9, Segment Information and Geographic Data for the three- and six-month periods ended March 26, 2022 and March27, 2021, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.
As of March26, 2022 and September25, 2021, the Company had total deferred revenue of 12.5billion and 11.9billion, respectively. As of March26, 2022, the Company expects63% of total deferred revenue to be realized in less than a year,27% within one-to-two years,8% within two-to-three years and2% in greater than three years.

Note 3 Financial Instruments

Cash, Cash Equivalents and Marketable Securities

The following tables show the Companys cash, cash equivalents and marketable securities by significant investment category as of March26, 2022 and September25, 2021 (in millions):

March 26, 2022
AdjustedUnrealizedUnrealizedFairCash andCurrentNon-Current
CostGainsLossesValueCashMarketableMarketable
EquivalentsSecuritiesSecurities
Cash14,29814,29814,298
Level 1(1):
Money market funds7,6537,6537,653
Mutual funds2307-9228228
Subtotal7,8837-97,8817,653228
Level 2(2):
Equity securities1,527-1,132395395
U.S. Treasury securities28,7112-1,03727,6762,3063,55421,816
U.S. agency securities6,561-4076,1542516835,220
Non-U.S. government securities18,86844-55118,361254,52613,810
Certificates of deposit and time deposits2,8722,8722,22160150
Commercial paper2,9132,9131,3101,603
Corporate debt securities93,05794-4,26688,8853411,30977,542
Municipal securities9901-22969162807
Mortgage- and asset-backed securities23,6133-1,29022,32635221,974
Subtotal179,112144-8,705170,5516,14723,185141,219
Total(3)201,293151-8,714192,73028,09823,413141,219
September 25, 2021
AdjustedUnrealizedUnrealizedFairCash andCurrentNon-Current
CostGainsLossesValueCashMarketableMarketable
EquivalentsSecuritiesSecurities
Cash17,30517,30517,305
Level 1(1):
Money market funds9,6089,6089,608
Mutual funds17511-1185185
Subtotal9,78311-19,7939,608185
Level 2(2):
Equity securities1,527-564963963
U.S. Treasury securities22,878102-7722,9033,5966,62512,682
U.S. agency securities8,9492-648,8871,7751,9305,182
Non-U.S. government securities20,201211-10120,3113903,09116,830
Certificates of deposit and time deposits1,3001,300490810
Commercial paper2,6392,6391,776863
Corporate debt securities83,8831,242-26784,85812,32772,531
Municipal securities96714981130851
Mortgage- and asset-backed securities20,529171-12420,57677519,801
Subtotal162,8731,742-1,197163,4188,02727,514127,877
Total(3)189,9611,753-1,198190,51634,94027,699127,877
(1)Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.
(2)Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
(3)As of March26, 2022 and September25, 2021, total marketable securities included 15.4billion and 17.9billion, respectively, that were restricted from general use, related to the European Commission decision finding that Ireland granted state aid to the Company, and other agreements.
The following table shows the fair value of the Companys non-current marketable debt securities, by contractual maturity, as of March26, 2022 (in millions):
Due after 1 year through 5 years97,603
Due after 5 years through 10 years22,899
Due after 10 years20,717
Total fair value141,219
Derivative Instruments and Hedging
The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates.
Foreign Exchange Risk
To protect gross margins from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, option contracts or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to12months.
To protect the Companys foreign currencydenominated term debt or marketable securities from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of March26, 2022, the Companys hedged term debt and marketable securitiesrelated foreign currency transactions are expected to be recognized within20years.
The Company may also enter into derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign currency exchange rates, as well as to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies.
Interest Rate Risk
To protect the Companys term debt or marketable securities from fluctuations in interest rates, the Company may enter into interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges.
The notional amounts of the Companys outstanding derivative instruments as of March26, 2022 and September25, 2021 were as follows (in millions):
March 26,September 25,
2,0222,021
Derivative instruments designated as accounting hedges:
Foreign exchange contracts65,14076,475
Interest rate contracts20,77516,875
Derivative instruments not designated as accounting hedges:
Foreign exchange contracts110,758126,918
The gross fair values of the Companys derivative assets and liabilities were not material as of March26, 2022 and September25, 2021.
The gains and losses recognized in other comprehensive income/(loss) and amounts reclassified from accumulated other comprehensive income/(loss) to net income for the Companys derivative instruments designated as cash flow hedges were not material in the three- and six-month periods ended March 26, 2022 and March27, 2021.
The carrying amounts of the Companys hedged items in fair value hedges as of March26, 2022 and September25, 2021 were as follows (in millions):
March 26,September 25,
2,0222,021
Hedged assets/(liabilities):
Current and non-current marketable securities14,94315,954
Current and non-current term debt-19,766-17,857
The gains and losses on the Companys derivative instruments designated as fair value hedges and the related hedged item adjustments were not material in the three- and six-month periods ended March 26, 2022 and March27, 2021.
Accounts Receivable
Trade Receivables
The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, resellers, small and mid-sized businesses and education, enterprise and government customers. The Company generally does not require collateral from its customers; however, the Company will require collateral or third-party credit support in certain instances to limit credit risk. In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposure. These credit-financing arrangements are directly between the third-party financing company and the end customer. As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements.
The Companys cellular network carriers accounted for36% and42% of total trade receivables as of March26, 2022 and September25, 2021, respectively.
Vendor Non-Trade Receivables
The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. As of March26, 2022, the Company hadtwovendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for52% and12%. As of September25, 2021, the Company hadthreevendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for52%,11% and11%.

Note 5 Debt

Commercial Paper

The Company issues unsecured short-term promissory notes (Commercial Paper) pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of March26, 2022 and September25, 2021, the Company had 7.0billion and 6.0billion of Commercial Paper outstanding, respectively.The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the six months ended March26, 2022 and March27, 2021 (in millions):

Six Months Ended
March 26,March 27,
2,0222,021
Maturities 90 days or less:
Proceeds from commercial paper, net4,9522,008
Maturities greater than 90 days:
Proceeds from commercial paper1,1911,368
Repayments of commercial paper-5,144-3,354
Repayments of commercial paper, net-3,953-1,986
Total proceeds from commercial paper, net99922
Term Debt
As of March26, 2022 and September25, 2021, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate carrying amount of 113.0billion and 118.7billion, respectively (collectively the Notes). As of March26, 2022 and September25, 2021, the fair value of the Companys Notes, based on Level 2 inputs, was 110.5billion and 125.3billion, respectively.

Note 6 Shareholders Equity

Share Repurchase Program

During the six months ended March26, 2022, the Company repurchased266million shares of its common stock for 43.3billion under a share repurchase program authorized by the Board of Directors (the Program), including35million shares delivered under accelerated share repurchase agreements totaling 6.0billion that were entered into in November 2021. The Program does not obligate the Company to acquire a minimum amount of shares. Under the Program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

Note 8 Commitments and Contingencies

Accrued Warranty

The following table shows changes in the Companys accrued warranties and related costs for the three- and six-month periods ended March 26, 2022 and March 27, 2021 (in millions):

Three Months EndedSix Months Ended
March 26,March 27,March 26,March 27,
2,0222,0212,0222,021
Beginning accrued warranty and related costs3,5304,1243,3643,354
Cost of warranty claims-581-649-1,253-1,372
Accruals for product warranty2573091,0951,802
Ending accrued warranty and related costs3,2063,7843,2063,784
Contingencies
The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims.

Note 9 Segment Information and Geographic Data

The following table shows information by reportable segment for the three- and six-month periods ended March 26, 2022 and March 27, 2021 (in millions):

Three Months EndedSix Months Ended
March 26,March 27,March 26,March 27,
2,0222,0212,0222,021
Americas:
Net sales40,88234,30692,37880,616
Operating income15,27912,05034,86427,835
Europe:
Net sales23,28722,26453,03649,570
Operating income8,5058,26520,05017,854
Greater China:
Net sales18,34317,72844,12639,041
Operating income8,1127,75819,29516,288
Japan:
Net sales7,7247,74214,83116,027
Operating income3,4963,4286,8456,931
Rest of Asia Pacific:
Net sales7,0427,54416,85215,769
Operating income2,8232,7366,8185,689
A reconciliation of the Companys segment operating income to the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 26, 2022 and March 27, 2021 is as follows (in millions):
Three Months EndedSix Months Ended
March 26,March 27,March 26,March 27,
2,0222,0212,0222,021
Segment operating income38,21534,23787,87274,597
Research and development expense-6,387-5,262-12,693-10,425
Other corporate expenses, net-1,849-1,472-3,712-3,135
Total operating income29,97927,50371,46761,037

SECTION 18 PEER COMPARISON & RANKING OF AAPL

18.1 GLOBAL PEER COMPARISON: AAPL - SIZE (all figures in $)

In its Global Peer Group of 9 companies AAPL is ranked AAPL is ranked first (1) by MCap, Revenue, Net Profit and Total Assets.

Name (Code)MCapRevenueNet ProfitTotal Assets
Rank of AAPL1111
Apple (AAPL)2,587.2B365.8B94.7B351B
Samsung Electronics (A005930)281.4B213.6B30B325.9B
HP (HPQ)34.6B63.5B6.5B38.6B
Zebra Technologies Class A (ZBRA)17.4B5.6B837M6.2B
Seagate Technology Holdings (STX)17.2B10.7B1.3B8.7B
NetApp (NTAP)15.9B6.3B937M10B
LG Electronics (A066570)11.7B57.1B788.2M40.9B
Quanta Computer (2382)10.1B37.6B1.1B23.9B
SYNNEX (SNX)9.7B31.6B395.1M27.7B

GLOBAL PEER COMPARISON: AAPL - RELATIVE VALUE INDICATORS

In value terms, comparing relative value of its shares, AAPL is ranked

+ 8 out of 9 by Dividend Yield (%) [0.6]

+ 8 out of 9 by Price/Earnings per share [26.0]

+ 9 out of 9 by Price/Sales per share [6.7]

Name (Code)Currency CodeLast PriceDiv Yld (%)P/EP/S
Rank of AAPL by value889
Apple (AAPL)USD1610.626.06.7
Samsung Electronics (A005930)KRW61,7002.39.71.3
HP (HPQ)USD332.86.00.5
Zebra Technologies Class A (ZBRA)USD332.223.53.3
Seagate Technology Holdings (STX)USD79.84.49.61.4
NetApp (NTAP)USD71.72.817.12.5
LG Electronics (A066570)KRW93,5000.90.2
Quanta Computer (2382)TWD78.78.49.00.3
SYNNEX (SNX)USD101.51.116.20.3

USD 1=

1,314.06 South Korean Won (KRW); 30.104 Taiwan Dollar (TWD)

18.2 FAANG PEER COMPARISON: AAPL - SIZE (all figures in $)

In its FAANG Peer Group of 5 companies (Facebook, Apple, Amazon, Netflix and Alphabet's Google) AAPL is ranked AAPL is ranked first (1) by MCap, Net Profit, second (2) by Revenue and third (3) by Total Assets.

Name (Code)MCapRevenueNet ProfitTotal Assets
Rank of AAPL1213
Apple (AAPL)2,587.2B365.8B94.7B351B
Amazon (AMZN)1,373.5B469.8B33.4B420.5B
Alphabet Class A (GOOGL)692B257.6B76B359.3B
Meta Platforms (META)367.4B117.9B39.4B166B
Netflix (NFLX)99.2B29.7B5.1B44.6B

FAANG PEER COMPARISON: AAPL - VALUATION INDICATORS

In value terms, comparing relative value of its shares, AAPL is ranked

+ 4 out of 5 by Price/Earnings per share [26.0]

+ 5 out of 5 by Price/Sales per share [6.7]

+ 5 out of 5 by Price/Book value per share [41.1]

Name (Code)Currency CodeLast PriceP/EP/SP/Book
Rank of AAPL by value455
Apple (AAPL)USD16126.06.741.1
Amazon (AMZN)USD135.141.12.911.2
Alphabet Class A (GOOGL)USD115.420.22.73.0
Meta Platforms (META)USD160.411.93.13.9
Netflix (NFLX)USD22319.63.46.3

18.3 BUYSELLSIGNALS FUNDAMENTALS VALUATION RANKING:

Apple vs NASDAQ Market

Out of 3,396 stocks and 5 units in the NASDAQ Market, Apple is ranked first(1) by Net Profit $, second(2) by Revenue, seventh(7) by Total Assets and Fifty-second(52) by ROA.

NASDAQ AvgAAPLAAPL Rank
Net Profit $-94.7 B1
Revenue $-365.8 B2
Total Assets $-351 B7
ROA (%)5.326.9752
EBITDA Margin%17.629.9197
P/Earnings27.2x25.9x205
P/Earnings/ Growth0.3x0.4x259
P/Sales3.4x6.7x281
Price/Net Tangible Assets9.9x41.01x293
Yield (%)0.80.6676
Total Debt/Equity (the lower the better)0.6x0.1x884
Premium to 52-Wk Low (%)17.9924.81230
Discount to 52-Wk High (%)22.611.82005

Negative values are shown in brackets.

18.4 GLOBAL RANK [out of 48,175 stocks] AND RANK OF APPLE IN THE AMERICAN REGION [out of 11,648 stocks]

DescriptionValueGlobal RankIn Am Region
Total Assets ($)351B20188
Revenue ($)365.8B174
Net Profit ($)94.7B51
Return on Equity %150.115362
Net Profit Margin %25.95,0081,119
Price to Book41.135,3316,424
Price/Earnings26.017,3542,769
Yield %0.620,6003,597
PV1000 (1Year) $1,1199,7162,034
$ Change (1Year) %11.49,1341,860

18.5 RANK OF APPLE IN THE NASDAQ-100 INDEX [out of 95 stocks] AND IN THE NASDAQ MARKET [out of 3476 stocks]

DescriptionValueIn NASDAQ-100 IndexIn NASDAQ Market
Total Assets ($)351B57
Revenue ($)365.8B22
Net Profit ($)94.7B11
Return on Equity %150.1112
Net Profit Margin %25.923200
Price to Book41.0472,345
Price/Earnings25.940969
Yield %0.642709
PV1000 (1Year) $1,11921142

18.6 LONG-TERM FUNDAMENTAL RANKING: 4 OUT OF 5 [5 is best]

Apple is ranked number 1 out of 5 listed computer integrated systems companies in the United States with a market capitalization of $2,587.2 billion.

Within its sector it has a relatively moderate Price/Sales of 6.7.

Finally, its earnings growth in the past 12 months has been a comparatively high 71.3%.

Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

SECTION 19 CORPORATE BONDS

19.1 Short-Term Bonds Yield up 31 basis points from 2.67% to 2.98% in the past quarter.

Short-Term Apple corporate bond yields (CUSIP: 037833CG3), maturing in 1 year 6 months have increased 31 basis points from 2.67% to 2.98% in the past quarter. Over the same period, spread to treasury has increased 19 basis points from -5.6 bps to 13.1 bps.

Yield to Maturity (YTM) spread to treasury 13.1 basis points up 19 bps

Today1- week ago1-mo ago3-mo ago1-year ago
YTM %2.983.122.962.670.38
Spread to Treasury (BPS)13.110.512.5-5.618.7
Treasury %-1.35-5.310.464.431,417.02

19.2 Medium-Term Bonds Yield down 30 basis points from 3.35% to 3.05% in the past quarter.

Medium-Term Apple corporate bond yields (CUSIP: 037833CJ7), maturing in 4 years 6 months have decreased 30 basis points from 3.35% to 3.05% in the past quarter. Over the same period, spread to treasury has decreased 4 basis points from 42.7 bps to 38.9 bps.

Yield to Maturity (YTM) spread to treasury 42.7 basis points down 4 bps

Today1- week ago1-mo ago3-mo ago1-year ago
YTM %3.052.913.383.351.1
Spread to Treasury (BPS)42.73.849.738.940.3
Treasury %-2.31-8.9-9.19-11.58277.38

For Company searches and sorting by bonds and variables, an interactive version of current day's Table is available here.

19.3 Time [Yrs Mo Days] and Yield to Maturity as on Aug 02, 2022

CUSIPTime to MaturityYTM (%)Treasury (%)Spread (%)
037833CJ74 yrs 6 mo 8 d3.052.630.42
037833CR94 yrs 9 mo 10 d3.022.630.39
037833CG31 yr 6 mo 8 d2.982.870.11
037833CU21 yr 9 mo 10 d2.922.870.05
037833AZ32 yrs 6 mo 8 d2.912.790.12
037833BG42 yrs 9 mo 12 d2.862.790.07

19.4 Key Statistics

MaturityYield to Maturity %Yrs to Maturity% Rise/Fall 3-mo
Feb to May 20231.9 to 3.160.56 to 0.76-0.65 to -0.1
Feb to May 20242.83 to 2.981.52 to 1.78-0.35 to -0.08
Feb to May 20252.86 to 2.912.52 to 2.780.59 to 0.71
Feb to Aug 20262.89 to 2.933.56 to 4.011.53 to 2.05
Feb to May 20273.02 to 3.054.52 to 4.782.06 to 2.37
Feb 20363.4913.565.08

19.5 Yield Curve - Apple Bond vs US Treasury

Years to MaturityApple Bond Yield (%)Treasury Yield (%)Spread to Treasury (BPS)
22.982.8513
32.912.7714
53.052.6243

The yield curve is upward sloping which is typical. The term premium between the yield of a 5-year Apple Inc. bond of 3.05% and the yield of a 3-year bond of 2.91% is 0.14%. Further, the yield curve is steepening from a term premium of 0.28% a month ago to a current level of 0.14%. This indicates investor expectations of falling inflation and/or decreasing demand for longer-term bonds. In comparison, the term premium of Treasury is 0.15%, down from 0.02% a month ago.

SECTION 20 PATENTS

20.1 Number of Patents Issued to Apple by the US Patent Office and the European Patent Office

A total of 19,579 patents were issued to Apple in the last eight years. In the past year 3,069 patents were issued, 1.3 times average of 2,447 patents per year.

12 months ended Aug 02No. of Patents Issued
20223,069
20213,339
20203,129
20192,757
20182,585
20172,309
20161,739
2015652
Total19,579

20.2 Rank by patents issued in the past 12 months: Apple vs NASDAQ stocks

Apple's ranked 1 by US Patents issued in the past year out of 3,801 NASDAQ listed companies. A total of 22,390 US patents were issued to NASDAQ listed companies in the past year, an average of 5.9 patents per company. Apple received 2,207 US Patents in the past 12 months, 375 times average.

SECTION 21 STOCK IDENTIFIERS

ISIN: US0378331005

PermID: 4295905573

Central Index Key (CIK): 320193

CUSIP: 037833100

RIC: AAPL.O

GLOSSARY

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabilities (times)

Debt/Equity: Net Debt/Net Assets %

Dividend Yield: Dividend Per Share/Share Price (%)

EBIT Margin : Earnings Before Interest and Tax/Revenue (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PCP: Previous Corresponding Period

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Price/Sales: Share Price/Sales Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.

Data for the BuySellSignals algorithms is drawn from annual reports, company websites and similar sources of publicly available data. It should be used as a guide only.

Created by www.buysellsignals.com