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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash-to-Debt 0.63
NAS:AAPL's Cash-to-Debt is ranked lower than
66% of the 2321 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.37 vs. NAS:AAPL: 0.63 )
Ranked among companies with meaningful Cash-to-Debt only.
NAS:AAPL' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.61  Med: 12.03 Max: No Debt
Current: 0.63
0.61
No Debt
Equity-to-Asset 0.35
NAS:AAPL's Equity-to-Asset is ranked lower than
81% of the 2283 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.56 vs. NAS:AAPL: 0.35 )
Ranked among companies with meaningful Equity-to-Asset only.
NAS:AAPL' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.28  Med: 0.56 Max: 0.7
Current: 0.35
0.28
0.7
Debt-to-Equity 0.87
NAS:AAPL's Debt-to-Equity is ranked lower than
79% of the 1812 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.34 vs. NAS:AAPL: 0.87 )
Ranked among companies with meaningful Debt-to-Equity only.
NAS:AAPL' s Debt-to-Equity Range Over the Past 10 Years
Min: 0  Med: 0.15 Max: 0.9
Current: 0.87
0
0.9
Debt-to-EBITDA 1.54
NAS:AAPL's Debt-to-EBITDA is ranked higher than
59% of the 1623 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.04 vs. NAS:AAPL: 1.54 )
Ranked among companies with meaningful Debt-to-EBITDA only.
NAS:AAPL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.3  Med: 0.76 Max: 1.51
Current: 1.54
0.3
1.51
Interest Coverage 25.38
NAS:AAPL's Interest Coverage is ranked lower than
60% of the 1899 Companies
in the Global Consumer Electronics industry.

( Industry Median: 59.34 vs. NAS:AAPL: 25.38 )
Ranked among companies with meaningful Interest Coverage only.
NAS:AAPL' s Interest Coverage Range Over the Past 10 Years
Min: 26.41  Med: 5180.15 Max: No Debt
Current: 25.38
26.41
No Debt
Piotroski F-Score: 5
Altman Z-Score: 3.60
Beneish M-Score: -2.12
WACC vs ROIC
9.80%
28.53%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating Margin % 26.87
NAS:AAPL's Operating Margin % is ranked higher than
97% of the 2300 Companies
in the Global Consumer Electronics industry.

( Industry Median: 4.45 vs. NAS:AAPL: 26.87 )
Ranked among companies with meaningful Operating Margin % only.
NAS:AAPL' s Operating Margin % Range Over the Past 10 Years
Min: 22.21  Med: 28.43 Max: 35.3
Current: 26.87
22.21
35.3
Net Margin % 21.12
NAS:AAPL's Net Margin % is ranked higher than
95% of the 2299 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.46 vs. NAS:AAPL: 21.12 )
Ranked among companies with meaningful Net Margin % only.
NAS:AAPL' s Net Margin % Range Over the Past 10 Years
Min: 16.32  Med: 21.55 Max: 26.67
Current: 21.12
16.32
26.67
ROE % 37.53
NAS:AAPL's ROE % is ranked higher than
97% of the 2273 Companies
in the Global Consumer Electronics industry.

( Industry Median: 6.76 vs. NAS:AAPL: 37.53 )
Ranked among companies with meaningful ROE % only.
NAS:AAPL' s ROE % Range Over the Past 10 Years
Min: 30.54  Med: 36.08 Max: 46.25
Current: 37.53
30.54
46.25
ROA % 14.09
NAS:AAPL's ROA % is ranked higher than
93% of the 2327 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.43 vs. NAS:AAPL: 14.09 )
Ranked among companies with meaningful ROA % only.
NAS:AAPL' s ROA % Range Over the Past 10 Years
Min: 13.87  Med: 19.79 Max: 28.54
Current: 14.09
13.87
28.54
ROC (Joel Greenblatt) % 230.92
NAS:AAPL's ROC (Joel Greenblatt) % is ranked higher than
99% of the 2318 Companies
in the Global Consumer Electronics industry.

( Industry Median: 12.27 vs. NAS:AAPL: 230.92 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
NAS:AAPL' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 218.49  Med: 364.21 Max: 545.32
Current: 230.92
218.49
545.32
3-Year Revenue Growth Rate 13.50
NAS:AAPL's 3-Year Revenue Growth Rate is ranked higher than
82% of the 2116 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.90 vs. NAS:AAPL: 13.50 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
NAS:AAPL' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -26.7  Med: 15.5 Max: 51.8
Current: 13.5
-26.7
51.8
3-Year EBITDA Growth Rate 13.00
NAS:AAPL's 3-Year EBITDA Growth Rate is ranked higher than
63% of the 1831 Companies
in the Global Consumer Electronics industry.

( Industry Median: 6.30 vs. NAS:AAPL: 13.00 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
NAS:AAPL' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: -49.2  Med: 17.8 Max: 124.1
Current: 13
-49.2
124.1
3-Year EPS without NRI Growth Rate 12.60
NAS:AAPL's 3-Year EPS without NRI Growth Rate is ranked higher than
60% of the 1691 Companies
in the Global Consumer Electronics industry.

( Industry Median: 5.00 vs. NAS:AAPL: 12.60 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
NAS:AAPL' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: -56.3  Med: 13.5 Max: 192.1
Current: 12.6
-56.3
192.1
GuruFocus has detected 7 Warning Signs with Apple Inc NAS:AAPL.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» NAS:AAPL's 30-Y Financials

Financials (Next Earnings Date: 2018-05-02)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q1 2017

AAPL Guru Trades in Q1 2017

George Soros 1,400 sh (New)
Richard Snow 26,877 sh (New)
Steven Cohen 331,501 sh (New)
Caxton Associates 56,200 sh (New)
Louis Moore Bacon 255,000 sh (New)
Warren Buffett 129,357,106 sh (+125.52%)
Murray Stahl 7,658 sh (+26.60%)
Tom Gayner 90,100 sh (+23.26%)
Joel Greenblatt 413,827 sh (+22.45%)
Chuck Royce 93,000 sh (+9.41%)
Mairs and Power 16,494 sh (+8.54%)
Lou Simpson 1,236,424 sh (+7.16%)
Ken Fisher 11,638,395 sh (+1.22%)
Spiros Segalas 9,688,633 sh (+1.23%)
Bill Nygren 3,187,000 sh (unchged)
Robert Olstein 53,000 sh (unchged)
First Eagle Investment 8,606 sh (unchged)
PRIMECAP Management 1,021,700 sh (unchged)
First Pacific Advisors 15,600 sh (unchged)
David Carlson 720,000 sh (unchged)
Julian Robertson Sold Out
Daniel Loeb Sold Out
Paul Tudor Jones Sold Out
Zeke Ashton Sold Out
Ray Dalio Sold Out
Larry Robbins 3,143,258 sh (-0.31%)
Pioneer Investments 9,353,547 sh (-0.31%)
Ronald Muhlenkamp 148,281 sh (-0.49%)
Barrow, Hanley, Mewhinney & Strauss 657,141 sh (-0.93%)
John Buckingham 88,281 sh (-1.05%)
T Rowe Price Equity Income Fund 710,000 sh (-1.39%)
David Dreman 17,692 sh (-2.09%)
Jeff Auxier 7,855 sh (-2.48%)
Scott Black 19,456 sh (-2.56%)
Mario Gabelli 68,828 sh (-2.71%)
Ron Baron 48,796 sh (-3.85%)
Jim Chanos 32,023 sh (-5.29%)
Diamond Hill Capital 2,443,915 sh (-6.06%)
Dodge & Cox 13,200 sh (-11.37%)
Lee Ainslie 4,870 sh (-15.89%)
Signature Select Canadian Fund 36,250 sh (-16.67%)
Jeremy Grantham 4,398,231 sh (-16.74%)
John Hussman 900 sh (-18.18%)
David Einhorn 3,971,000 sh (-31.63%)
David Tepper 300,000 sh (-33.33%)
Manning & Napier Advisors, Inc 1,650,867 sh (-37.02%)
David Rolfe 2,219,605 sh (-37.02%)
Wallace Weitz 2,300 sh (-70.30%)
NWQ Managers 4,023 sh (-90.46%)
» More
Q2 2017

AAPL Guru Trades in Q2 2017

Jim Simons 584,433 sh (New)
Paul Tudor Jones 47,327 sh (New)
John Paulson 12,300 sh (New)
Lee Ainslie 11,890 sh (+144.15%)
Robert Olstein 113,000 sh (+113.21%)
David Tepper 625,000 sh (+108.33%)
Steven Cohen 658,571 sh (+98.66%)
Scott Black 36,610 sh (+88.17%)
Murray Stahl 12,741 sh (+66.38%)
George Soros 1,700 sh (+21.43%)
Tom Gayner 103,100 sh (+14.43%)
Mairs and Power 17,736 sh (+7.53%)
Jeremy Grantham 4,692,769 sh (+6.70%)
Joel Greenblatt 418,326 sh (+1.09%)
Warren Buffett 130,191,960 sh (+0.65%)
Barrow, Hanley, Mewhinney & Strauss 659,035 sh (+0.29%)
Lou Simpson 1,239,850 sh (+0.28%)
Spiros Segalas 11,000,132 sh (+13.54%)
John Hussman 900 sh (unchged)
First Eagle Investment 8,606 sh (unchged)
Ron Baron 48,796 sh (unchged)
First Pacific Advisors 15,600 sh (unchged)
Caxton Associates 20,000 sh (unchged)
Steven Cohen 350,000 sh (unchged)
Ronald Muhlenkamp 148,146 sh (-0.09%)
Pioneer Investments 9,272,257 sh (-0.87%)
Mario Gabelli 68,158 sh (-0.97%)
David Einhorn 3,928,600 sh (-1.07%)
Jeff Auxier 7,755 sh (-1.27%)
John Buckingham 86,743 sh (-1.74%)
Diamond Hill Capital 2,392,603 sh (-2.10%)
Dodge & Cox 12,700 sh (-3.79%)
David Carlson 690,000 sh (-4.17%)
T Rowe Price Equity Income Fund 669,200 sh (-5.75%)
Bill Nygren 2,987,000 sh (-6.28%)
Chuck Royce 85,000 sh (-8.60%)
Ken Fisher 10,558,609 sh (-9.28%)
PRIMECAP Management 923,500 sh (-9.61%)
NWQ Managers 3,553 sh (-11.68%)
Larry Robbins 2,529,696 sh (-19.52%)
David Rolfe 1,722,681 sh (-22.39%)
David Dreman 12,922 sh (-26.96%)
Caxton Associates 36,400 sh (-35.23%)
Jim Chanos 19,109 sh (-40.33%)
Richard Snow 14,477 sh (-46.14%)
Louis Moore Bacon 115,000 sh (-54.90%)
Manning & Napier Advisors, Inc 342,823 sh (-79.23%)
Wallace Weitz 140 sh (-93.91%)
» More
Q3 2017

AAPL Guru Trades in Q3 2017

Ray Dalio 20,165 sh (New)
Paul Tudor Jones 137,556 sh (+190.65%)
Louis Moore Bacon 280,000 sh (+143.48%)
Caxton Associates 83,900 sh (+130.49%)
David Tepper 1,361,000 sh (+117.76%)
Jim Chanos 22,033 sh (+15.30%)
Lee Ainslie 13,440 sh (+13.04%)
Signature Select Canadian Fund 40,500 sh (+11.72%)
First Eagle Investment 9,506 sh (+10.46%)
Tom Gayner 113,100 sh (+9.70%)
Ken Fisher 10,888,403 sh (+3.12%)
Warren Buffett 134,092,782 sh (+3.00%)
Murray Stahl 13,117 sh (+2.95%)
John Buckingham 87,563 sh (+0.95%)
Scott Black 36,636 sh (+0.07%)
Robert Olstein 113,000 sh (unchged)
Jeff Auxier 7,755 sh (unchged)
Wallace Weitz 140 sh (unchged)
Richard Snow 14,477 sh (unchged)
Steven Cohen 1,150,000 sh (unchged)
Caxton Associates 100,000 sh (unchged)
Bill Nygren 2,987,000 sh (unchged)
Jim Simons Sold Out
John Paulson Sold Out
George Soros Sold Out
Lou Simpson 1,234,937 sh (-0.40%)
Mairs and Power 17,657 sh (-0.45%)
Ronald Muhlenkamp 147,401 sh (-0.50%)
PRIMECAP Management 918,500 sh (-0.54%)
Larry Robbins 2,489,532 sh (-1.59%)
Diamond Hill Capital 2,350,332 sh (-1.77%)
NWQ Managers 3,472 sh (-2.28%)
Mario Gabelli 66,580 sh (-2.32%)
David Carlson 670,000 sh (-2.90%)
Dodge & Cox 12,300 sh (-3.15%)
Pioneer Investments 8,779,797 sh (-5.31%)
Ron Baron 45,877 sh (-5.98%)
David Dreman 11,738 sh (-9.16%)
Jeremy Grantham 4,255,945 sh (-9.31%)
Barrow, Hanley, Mewhinney & Strauss 573,292 sh (-13.01%)
David Rolfe 1,453,068 sh (-15.65%)
Chuck Royce 68,000 sh (-20.00%)
First Pacific Advisors 12,200 sh (-21.79%)
John Hussman 700 sh (-22.22%)
T Rowe Price Equity Income Fund 440,000 sh (-34.25%)
Joel Greenblatt 272,095 sh (-34.96%)
David Einhorn 2,192,900 sh (-44.18%)
Steven Cohen 311,765 sh (-52.66%)
Manning & Napier Advisors, Inc 13,999 sh (-95.92%)
Spiros Segalas 10,823,610 sh (-1.60%)
» More
Q4 2017

AAPL Guru Trades in Q4 2017

Tom Russo 1,450 sh (New)
Louis Moore Bacon 1,180,000 sh (+321.43%)
David Tepper 4,587,852 sh (+237.09%)
Lee Ainslie 37,860 sh (+181.70%)
Pioneer Investments 13,228,306 sh (+50.67%)
Richard Snow 20,677 sh (+42.83%)
Warren Buffett 165,333,962 sh (+23.30%)
First Pacific Advisors 13,700 sh (+12.30%)
Murray Stahl 14,402 sh (+9.80%)
Ken Fisher 11,206,974 sh (+2.93%)
David Dreman 12,070 sh (+2.83%)
Jeremy Grantham 4,316,851 sh (+1.43%)
Lou Simpson 1,239,748 sh (+0.39%)
PRIMECAP Management 921,500 sh (+0.33%)
John Hussman 700 sh (unchged)
First Eagle Investment 9,506 sh (unchged)
Robert Olstein 113,000 sh (unchged)
Tom Gayner 113,100 sh (unchged)
Ron Baron 45,877 sh (unchged)
Jeff Auxier 7,755 sh (unchged)
David Einhorn 2,192,900 sh (unchged)
Wallace Weitz 140 sh (unchged)
Spiros Segalas 10,823,610 sh (unchged)
Paul Tudor Jones Sold Out
Steven Cohen Sold Out
John Buckingham 87,199 sh (-0.42%)
Scott Black 36,411 sh (-0.61%)
Mairs and Power 17,492 sh (-0.93%)
Ronald Muhlenkamp 145,822 sh (-1.07%)
Diamond Hill Capital 2,320,096 sh (-1.29%)
Dodge & Cox 11,800 sh (-4.07%)
Chuck Royce 65,000 sh (-4.41%)
Mario Gabelli 61,664 sh (-7.38%)
David Carlson 620,000 sh (-7.46%)
NWQ Managers 2,922 sh (-15.84%)
David Rolfe 1,130,891 sh (-22.17%)
Joel Greenblatt 193,922 sh (-28.73%)
Jim Chanos 13,927 sh (-36.79%)
Ray Dalio 12,680 sh (-37.12%)
T Rowe Price Equity Income Fund 230,000 sh (-47.73%)
Larry Robbins 1,261,612 sh (-49.32%)
Caxton Associates 41,826 sh (-50.15%)
Barrow, Hanley, Mewhinney & Strauss 505 sh (-99.91%)
» More
» Details

Insider Trades

Latest Guru Trades with AAPL

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Warren Buffett 2017-12-31 Add 23.30%2.76%$153.48 - $176.42 $ 175.505%165,333,962
Ken Fisher 2017-12-31 Add 2.93%0.07%$153.48 - $176.42 $ 175.505%11,206,974
David Tepper 2017-12-31 Add 237.09%5.13%$153.48 - $176.42 $ 175.505%4,587,852
Lou Simpson 2017-12-31 Add 0.39%0.03%$153.48 - $176.42 $ 175.505%1,239,748
T Rowe Price Equity Income Fund 2017-12-31 Reduce -47.73%0.16%$153.48 - $176.42 $ 175.505%230,000
Joel Greenblatt 2017-12-31 Reduce -28.73%0.18%$153.48 - $176.42 $ 175.505%193,922
Ronald Muhlenkamp 2017-12-31 Reduce -1.07%0.08%$153.48 - $176.42 $ 175.505%145,822
Mario Gabelli 2017-12-31 Reduce -7.38%$153.48 - $176.42 $ 175.505%61,664
David Dreman 2017-12-31 Add 2.83%0.03%$153.48 - $176.42 $ 175.505%12,070
Dodge & Cox 2017-12-31 Reduce -4.07%$153.48 - $176.42 $ 175.505%11,800
NWQ Managers 2017-12-31 Reduce -15.84%$153.48 - $176.42 $ 175.505%2,922
Barrow, Hanley, Mewhinney & Strauss 2017-12-31 Reduce -99.91%0.13%$153.48 - $176.42 $ 175.505%505
Warren Buffett 2017-09-30 Add 3.00%0.34%$142.73 - $164.05 $ 175.5013%134,092,782
Ken Fisher 2017-09-30 Add 3.12%0.08%$142.73 - $164.05 $ 175.5013%10,888,403
David Einhorn 2017-09-30 Reduce -44.18%4.03%$142.73 - $164.05 $ 175.5013%2,192,900
David Tepper 2017-09-30 Add 117.76%1.6%$142.73 - $164.05 $ 175.5013%1,361,000
Lou Simpson 2017-09-30 Reduce -0.40%0.03%$142.73 - $164.05 $ 175.5013%1,234,937
Barrow, Hanley, Mewhinney & Strauss 2017-09-30 Reduce -13.01%0.02%$142.73 - $164.05 $ 175.5013%573,292
T Rowe Price Equity Income Fund 2017-09-30 Reduce -34.25%0.15%$142.73 - $164.05 $ 175.5013%440,000
Joel Greenblatt 2017-09-30 Reduce -34.96%0.3%$142.73 - $164.05 $ 175.5013%272,095
Ronald Muhlenkamp 2017-09-30 Reduce -0.50%0.03%$142.73 - $164.05 $ 175.5013%147,401
Tom Gayner 2017-09-30 Add 9.70%0.03%$142.73 - $164.05 $ 175.5013%113,100
Mario Gabelli 2017-09-30 Reduce -2.32%$142.73 - $164.05 $ 175.5013%66,580
Ron Baron 2017-09-30 Reduce -5.98%$142.73 - $164.05 $ 175.5013%45,877
Dodge & Cox 2017-09-30 Reduce -3.15%$142.73 - $164.05 $ 175.5013%12,300
David Dreman 2017-09-30 Reduce -9.16%0.09%$142.73 - $164.05 $ 175.5013%11,738
First Eagle Investment 2017-09-30 Add 10.46%$142.73 - $164.05 $ 175.5013%9,506
NWQ Managers 2017-09-30 Reduce -2.28%$142.73 - $164.05 $ 175.5013%3,472
George Soros 2017-09-30 Sold Out 0.01%$142.73 - $164.05 $ 175.5013%0
John Paulson 2017-09-30 Sold Out 0.02%$142.73 - $164.05 $ 175.5013%0
Warren Buffett 2017-06-30 Add 0.65%0.07%$140.68 - $156.1 $ 175.5019%130,191,960
Ken Fisher 2017-06-30 Reduce -9.28%0.26%$140.68 - $156.1 $ 175.5019%10,558,609
David Einhorn 2017-06-30 Reduce -1.07%0.08%$140.68 - $156.1 $ 175.5019%3,928,600
Bill Nygren 2017-06-30 Reduce -6.28%0.18%$140.68 - $156.1 $ 175.5019%2,987,000
Lou Simpson 2017-06-30 Add 0.28%0.02%$140.68 - $156.1 $ 175.5019%1,239,850
T Rowe Price Equity Income Fund 2017-06-30 Reduce -5.75%0.03%$140.68 - $156.1 $ 175.5019%669,200
Barrow, Hanley, Mewhinney & Strauss 2017-06-30 Add 0.29%$140.68 - $156.1 $ 175.5019%659,035
David Tepper 2017-06-30 Add 108.33%0.7%$140.68 - $156.1 $ 175.5019%625,000
Joel Greenblatt 2017-06-30 Add 1.09%0.01%$140.68 - $156.1 $ 175.5019%418,326
Ronald Muhlenkamp 2017-06-30 Reduce -0.09%0.01%$140.68 - $156.1 $ 175.5019%148,146
Robert Olstein 2017-06-30 Add 113.21%1.1%$140.68 - $156.1 $ 175.5019%113,000
Tom Gayner 2017-06-30 Add 14.43%0.04%$140.68 - $156.1 $ 175.5019%103,100
Mario Gabelli 2017-06-30 Reduce -0.97%$140.68 - $156.1 $ 175.5019%68,158
David Dreman 2017-06-30 Reduce -26.96%0.39%$140.68 - $156.1 $ 175.5019%12,922
Dodge & Cox 2017-06-30 Reduce -3.79%$140.68 - $156.1 $ 175.5019%12,700
John Paulson 2017-06-30 New Buy0.02%$140.68 - $156.1 $ 175.5019%12,300
NWQ Managers 2017-06-30 Reduce -11.68%$140.68 - $156.1 $ 175.5019%3,553
George Soros 2017-06-30 Add 21.43%$140.68 - $156.1 $ 175.5019%1,700
Wallace Weitz 2017-06-30 Reduce -93.91%0.01%$140.68 - $156.1 $ 175.5019%140
Warren Buffett 2017-03-31 Add 125.52%6.39%$115.82 - $144.12 $ 175.5034%129,357,106
Ken Fisher 2017-03-31 Add 1.22%0.03%$116.02 - $144.12 $ 175.5033%11,638,395
David Einhorn 2017-03-31 Reduce -31.63%3.66%$115.82 - $144.12 $ 175.5034%3,971,000
Lou Simpson 2017-03-31 Add 7.16%0.45%$115.82 - $144.12 $ 175.5034%1,236,424
T Rowe Price Equity Income Fund 2017-03-31 Reduce -1.39%0.01%$116.02 - $144.12 $ 175.5033%710,000
Barrow, Hanley, Mewhinney & Strauss 2017-03-31 Reduce -0.93%$115.82 - $144.12 $ 175.5034%657,141
Joel Greenblatt 2017-03-31 Add 22.45%0.14%$115.82 - $144.12 $ 175.5034%413,827
David Tepper 2017-03-31 Reduce -33.33%0.31%$115.82 - $144.12 $ 175.5034%300,000
Ronald Muhlenkamp 2017-03-31 Reduce -0.49%0.03%$115.82 - $144.12 $ 175.5034%148,281
Tom Gayner 2017-03-31 Add 23.26%0.05%$116.02 - $144.12 $ 175.5033%90,100
Mario Gabelli 2017-03-31 Reduce -2.71%$116.02 - $144.12 $ 175.5033%68,828
Ron Baron 2017-03-31 Reduce -3.85%$115.82 - $144.12 $ 175.5034%48,796
David Dreman 2017-03-31 Reduce -2.09%0.02%$115.82 - $144.12 $ 175.5034%17,692
Dodge & Cox 2017-03-31 Reduce -11.37%$115.82 - $144.12 $ 175.5034%13,200
NWQ Managers 2017-03-31 Reduce -90.46%0.06%$115.82 - $144.12 $ 175.5034%4,023
Wallace Weitz 2017-03-31 Reduce -70.30%0.03%$115.82 - $144.12 $ 175.5034%2,300
George Soros 2017-03-31 New Buy0.01%$115.82 - $144.12 $ 175.5034%1,400
Julian Robertson 2017-03-31 Sold Out 3.59%$115.82 - $144.12 $ 175.5034%0
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Business Description

Industry: Computer Hardware » Consumer Electronics    NAICS: 334220    SIC: 3571
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Headquarter Location:USA
Apple Inc is designs, manufactures and markets mobile communication and media devices and personal computers, and sells a variety of related software, services, accessories, networking solutions and third-party digital content and applications.

Apple designs consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Watch), and TV boxes (Apple TV), as well as a variety of services such as Apple Music, iCloud, and Apple Pay. Apple's products run internally developed software, and we believe this integration of hardware, software, and services often allows the firm to maintain premium pricing for its devices. Apple's products are distributed online as well as through company-owned stores and third-party retailers.

Guru Investment Theses on Apple Inc

David Rolfe Comments on Apple Inc. - Jan 12, 2018

Apple (NASDAQ:AAPL)



“You have to go back to Rockefeller and Standard Oil to find a company so dominant in a business so large,” says David Rolfe (Trades, Portfolio), chief investment officer at Wedgewood Partners, which manages $5 billion. “Other companies settle for unit sales or revenues, but in many quarters, Apple collects more than 80% of gross profit across the smartphone industry.”



Barron’s



December 23, 2017





Apple enjoyed a stellar 2017 on both the product front and on the financial front. Revenue growth accelerated all four quarters in 2017. The Company’s fiscal year-end (September) ended on a high note of record revenue across all product categories, plus notable product momentum and market share gains in most products and in most geographies around the globe. China was notable, with market share gains for iPhone, iPad and the Mac. Specifically, Apple posted record revenue in China for its services business and the Mac. The Company’s fiscal fourth quarter posted record year-over-year September revenue of $52.6 billion (+12%) and record earnings per share of $2.07 (+24%).



Given the size of the Company’s iPhone franchise, the results in any given quarter or calendar year are dominated by the fortunes (or lack thereof) of the iPhone. The iPhone really is the straw that stirs the Apple drink. The iPhone celebrated its 10-year anniversary in 2017. Since the launch of the first iPhone, Apple has sold 1,250,432,000 iPhones. These sales have generated nearly $800 billion. It is estimated that 800 million of these iPhones remain active.



Over the past 10 years, the average selling price of the iPhone has, to the surprise of many, been remarkably steady for a technology hardware product. Over the years, the selling price has averaged about $638. No doubt carrier-subsidized cost over many of the past 10 years has been part and parcel of ASP stability. In recent years, the acceptance of smartphone users that their very personalized phones have become indispensable in their daily lives so much so that millions of users now allocate as much monthly budget for their smartphones as they do for housing/rental, transportation, cable and electric bills. Dare we include food too? Remarkably, the utility and functionality of modern smartphones, with their myriad of Apps and capabilities (communication, social networking, entertainment, financial management, shopping, health tracking) are nothing short of daily human subsistence.











The surprise over the next couple of years might be a spike in iPhone ASPs. Apple could well sell 250 million iPhones each year over the next three years. As the user base (plus new users) upgrades to the iPhone 8 and the iPhone X, ASPs could easily exceed $700 – and even approach $750. The Company now offers six iPhone configurations between $650 and $850



– iPhone 7 and 8. The iPhone X (currently $1,000 to $1,150) really gets into ASPs next year.



In fiscal 2017 the Company sold nearly 217 million iPhones, a gain of just +2% over 2016 – and less than the 231 million iPhones sold in 2015. As seen below, the apex of iPhone sales was recorded back in late 2015 during the incredible success of the new, larger iPhone 6 era. Pent -up demand for the larger iPhone 6 (particularly in China) drove iPhone unit growth of +22% and revenue growth of +36% in fiscal 2015. Since the tough comparison from 2015, plus the realities of replacement demand for new iPhones driving unit sales, with new iPhone user growth losing its forming tailwind, unit growth was welcomed back in 2017.



China was key to the renewal of consistent iPhone growth during 2017. Kantar reports that iPhone market share fell from 25.3% in November of 2015 to 19.9%. By March of 2017 iPhone market share in China had tumbled to just 12.4%. That would mark the nadir of iPhone market share. Fast forward to today, and iPhone market share has steadily improved back to approximately 20%.





That first iPhone was truly revolutionary. Here is what we wrote on the iPhone launch back in April of 2007:



The hype and hyperbole over the iPhone has been such that a skeptic might suspect that expectations are so high on this so- called “revolutionary” device that it is doomed to disappoint all but the most die-hard Apple fans. Perhaps. But we don’t think so. In fact, despite the early glowing reviews thus far, and the gee-whiz ads (see for yourself: http://www.apple.com/iphone/usingiphone/guidedtour.html and here http://www.apple.com/iphone/ads/ad1/), we believe the iPhone will be in fact a quantum leap in the ever-evolving description and maturation of the “smartphone” market.



The iPhone raises the bar across all applications. It truly is a revolutionary cellphone; Apple’s best iPod to-date and the first truly useful web browser device. How did they accomplish so much in a single device? Simple answer; but hard for competitors to copy: cutting-edge software, delivered on very powerful hardware (three microprocessors within the iPhone). At the iPhones’ core runs a full version of Mac OS – with first- in-class integration of iPod software and Safari (web browser) software. Elements of the operating software in the BlackBerry Pearl, LG Prada, Motorola Q9, Nokia N95, Sony Ericsson W810i and Treo 750 are certainly robust, but the means to both next-generation application integration and user-experience superiority resides in best-in- class operating systems which is the Mac OS. We would not discount what Jobs said, the iPhone could well be years ahead of its respective competitors.



To mark the 10-year anniversary, Apple pulled out all the skunk-works stops in designing the iPhone X. Heretofore, every new iteration of the iPhone was certainly evolutionary, rather than revolutionary. Every new generation of the iPhone boasted the latest cutting-edge hardware and software marque features from Apple. “S” generation iPhones haven’t garnered the enthusiasm from the user base, new customers or the press too, but they no doubt pushed enough elements of the Company’s technological prowess. New generations of iPhones that promised new design aesthetics and new form sizes have been seminal new product announcements. The all-glass iPhone 4 and the larger iPhone 6 come to mind on this score. The introduction of the App Store in the summer of 2008 with an initial 500 Apps fundamentally turned the iPhone into what would become a uniquely personal computing device. The App Store offerings continue to fundamentally change the way we communicate via social media, change our shopping habits, how we bank – and much more.



The iPhone X is not, in our view, a truly revolutionary product in the same sense as the first iPhone, but we do think of it as much more than an evolutionary improvement. Compare the iPhone 8 to the iPhone 7 and the evolutionary cadence is clear. The iPhone X is a new direction, an inflection point, as it were, toward a different iPhone future. The two design changes of the iPhone X that standout versus the iPhone 8 are Face ID and the elimination of the front-facing home button. Removal of the home button not only frees up more space, but is a new, more intuitive gateway into the iPhone’s software via a swipe. Face ID is Apple’s entry into biometric authentication. From our experience using Face ID, we happily report that it works well – and it’s very fast. Apple reports that the typical iPhone is unlocked 80 times per day. Just in terms of unlocking an iPhone, compared to the early years of 4 and 6– digit PIN numbers, to Touch ID and now to Face ID, the daily time savings is apparent immediately to new iPhone X users.



Again, the iPhone X may not be revolutionary, but it does represent a paradigm shift in software interaction and presents the pathway for the development by both Apple and outside developers in the new, new world of augmented reality. Relatedly, last September Apple announced their latest processor, the neural engine A11 Bionic chip. This 4.3 billion transistor, 6 -core chip is notable not only for its power (exceeding the power of current laptop PCs), but also the inclusion of the Company’s first-designed GPU solution. Following this processor roadmap, 2018 could bring the announcement of a system on a chip (SOC) that offers hardware acceleration for artificial intelligence (AI) processing.



Rounding out the other products and services that make up the Company’s best-in-class ecosystem, we find more good news to report. The iPad was awakened from its multiyear slumber in 2017. A mix of the larger, 10.5-inch iPad Pro, plus more attractive price points for the 9.7-inch iPad reignited growth. In all, iPad sales were up +15% in fiscal 2017 and the iPad global market share rebounded to 4-year highs. NPD reports that iPad market share in the U.S. jumped to 54% from 47% over fiscal 2017. Revenues in the all-important U.S. education market gained +32% during the fourth quarter. Unit sales were up +25% in China and +39% in India.



2017 was a significant year for Apple Watch. The Apple Watch was first introduced in September of 2014 and became available for sale in April of 2015. Today, and in very short order, Apple can boast that they have become the world’s largest watchmaker. Rolex, founded a few years ago in 1905, ceded its #1 ranking to Apple last quarter. Apple reports that their Wearables (Watch, AirPods and Beats headphones) business in units was up +75% year-over-year in the fourth quarter of fiscal 2017 – and was now the size of a Fortune 400 business. Apple Watch ended the fiscal year having grown at +50% for three consecutive quarters. As 2018 rolls in, Apple Watch’s revenue run-rate looks to be approaching $5.5 billion – driven by the launch of the LTE cellular-enabled Series 3 Watch, as well as repositioning the Watch as a best-in-class cardiovascular wearable. All told, the Company sold 18 million watches in 2017 – and has sold 33 million since its initial launch. The Watch story could well be in the very early innings of growth, as the adoption of the Watch within the iPhone user base is just 5%.



Even the Mac had its best-ever revenue year in 2017, reaching $25.8 billion. During the September quarter, Mac revenues grew +25%, and grew +10% for fiscal 2017. These results sparkle even more against the backdrop of a punk industry environment that IDC reports shrank by -1% on a global basis. Apple’s long-held position in the premium PC segment continues to serve them well. Note the stability and the ASP of Macs in the first graphic. The recently introduced iMac Pro is a wonder of desktop horsepower – a well received addition to the Mac lineup after the lackluster launch of the latest MacBook Pro in late 2016.



Apple’s Services business may have been the bright spot during 2017. Long in the making, Services is the glue of Apple’s incredible ecosystem. Key elements of the Services business – App Store, iCloud, AppleCare, Apple Pay, Apple Music, plus add in Apple Maps and Siri – are the connective tissue between the Company’s connected hardware to enhance the customer experience.



Today, Apple’s ecosystem has grown to over 900 million customers and over 800 million active devices and over 300 million devices sold per year. This ecosystem is no doubt giant, as well as global in size, scale, and scope. While Apple outsources the manufacturing of its hardware products, the Company has long owned a staggering amount of equipment located in their manufacturing partners’ plants - $54 billion of machinery, equipment and internal-use software on Apple’s balance sheet certainly attests to the enormity of the scale and financial resources it takes to manufacture and sell +300 million gadgets per year. On this score, Apple is unmatched.





For example, Apple is the best-selling western brand in China. Greater China (including mainland China, Hong Kong, and Taiwan) revenues eclipsed $10 billion in 2011 and soared to $59 billion in 2015. After two years of decline, the Company’s recent Greater China revenue acceleration may challenge the 2015 high -water mark in 2018.



The Company’s nonstop efforts to improve their ecosystem delivers, prospectively, stickier customers, halo effects, and annuity-like revenues. Like most technology company ecosystem efforts (think Software as a Service and the sort), the Company’s Services is a bastion of stellar revenue growth, but unlike most, a profit machine.



Services revenue reached an all-time quarterly record of $8.5 billion last quarter (+34%) – reaching a $30 billion annual run-rate. The business is now the size of a Fortune 100 business. Across all of the Company’s Services offerings, the number of paid subscriptions has reached 210 million. Paid subscriptions for Apple Music have reached 30 million in just 27 months – it took Spotify 74 months to reach that mark. Over the course of 2017, Apple Pay users have doubled and annual transactions went up +330%. The AppStore set a new record in 2017 and enters 2018 as the Company’s fastest-growing and highest-margin business. The Company’s AppStore gross margin is as high as 90% on Net Apps purchases.



In fact, as of this writing, the Company just reported that the AppStore’s New Year’s Day purchases of $300 million set a new record. In addition, during the week starting on Christmas Eve, a record number of customers both purchased and downloaded apps from the AppStore, to the tune of $890 million during those seven days. Lastly, on app purchases during 2017, the Company reports that they paid out $26.5 billion to iOS developers – a +30% increase.





Late in 2017 brought the significant news that the cash problem of the 1st National Bank of Cupertino was fixed when President Trump signed the "Tax Cuts and Jobs Act" into law on December 22. Under the current U.S. tax system, Apple owes 35% tax to the federal government on all revenue earned - both in the U.S. and abroad. The new law enacts a deemed repatriation of overseas profits at a rate of just 15.5% for cash and equivalents and 8% for reinvested earnings. Goldman Sachs estimates that U.S. companies hold $3.1 trillion of overseas profits.



As of September 30, Apple alone holds $252 billion in tax-deferred foreign earnings, 94% of its total cash and marketable securities. This is most welcome news for shareholders. Heretofore, Apple has needed to borrow heavily to fund capex, buy back stock and pay dividends. Their U.S.-only operating cash generation wasn’t footing the bill.



Now, before you think Apple wants for cash, a little perspective is in order. We have chronicled Apple’s prodigious cash generation for over a decade now, so let’s get caught up: Over the past ten years, Apple has generated $450 billion in operating cash flow and $373 billion in free cash flow. Over just the past five years, they have generated $324 billion in operating cash flow and $267 billion in free cash flow.



In fiscal 2017 alone, Apple generated nearly $64 billion of operating cash flow, about as much as that of Alphabet, Amazon and Facebook combined. On a free cash flow basis, which is a measure of how much cash is generated after taking into account such items as capital expenditures and other expenses associated with running the Company, Apple's $51 billion of free cash flow was $2 billion greater than free cash produced by Alphabet, Amazon and Facebook combined.



In 2013 and 2014, Apple began taking on both long-term and short-term debt to offset their international earnings. Today the Company has $113 billion in debt, netting out their cash and liquidity to approximately $150 billion. After repatriation, Apple will be sitting on a cool +$213 billion in U.S. cash. Net of debt, the Company will have about $100 billion.





The Company began returning capital to shareholders back in 2012, first as a dividend. Share buybacks started in 2013. To date, the Company has returned $234 billion of their current $300 billion capital return program. While the shares are still reasonably valued we would prefer the Company to continue to buy back stock. The Company has been buying back stock to the tune of $6 billion to $10 billion per quarter (dividends are almost $3.5 billion per quarter). Perhaps a $50 billion to $75 billion Dutch Auction stock buyback is in order.



In sum, we hope to convey that the State of Apple is quite healthy – and growing. Recall that the Company’s recent financial peak was fiscal 2015 when the Company generated $81.3 billion in operating cash flow. We expect that level to be breached in the next couple of years. Capital spending has clocked in around $13 billion over the past few years. Even if the Company spends $45 billion in capex over the next three years, the Company will generate many billions more than they need to keep the lights on. iCash indeed!

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GAMCO Growth Fund Comments on Apple - Nov 14, 2017

Apple (NASDAQ:AAPL) (6.5%) (AAPL – $154.12 – NASDAQ) designs computers, mobile phones and other hardware, along with personal and professional software. Apple inspired the digital music revolution with the iPod and iTunes, redefined the mobile phone with the iPhone and App Store, invented an entirely new category (tablets) with the iPad, and continues to be at the forefront of mobile technology with the Apple Watch, Apple Pay and Apple Music. Perhaps Apple’s greatest innovation has been its integrated ecosystem, which retains customers and produces a “halo effect” for other Apple devices. At about 11% of total revenue, Apple’s less cyclical Services business is growing at a 20% run rate and is accretive to margins.



From GAMCO Growth Fund third quarter 2017 commentary.



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David Einhorn Comments on Apple - May 17, 2017

AAPL (NASDAQ:AAPL) advanced from $115.82 to $143.66 as it reported a good quarter and the market is now realizing it is not the next Nokia or BlackBerry. AAPL’s market position is durable and its ecosystem is expanding with high-margin recurring services revenue streams. We continue to like AAPL because we think it is a superior company that still trades for less than a market multiple.





  • From Einhorn's first-quarter 2017 shareholder commentary.


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David Rolfe Comments on Apple - Apr 14, 2017

Apple (NASDAQ:AAPL) was a top relative and absolute contributor to performance during the quarter. The Company's iPhone franchise continues to dominate profitability share within the smartphone OEM market, after the next most profitable competitor (Samsung) incurred sizable losses from a product recall. Apple continues its long history of maintaining a focused hardware portfolio (relative to competitors), while aggressively innovating its in-house software and services capabilities which enables the narrow hardware portfolio to "act" much wider. For example, Apple's revenue from software and services grew almost 20%, to over $24 billion during fiscal 2016. We think Apple's software and services revenue stream has a very attractive profitability profile that should help offset the financial ebbs and flows inherent in the Company's well-established hardware product cycles. Apple exited the most recent quarter with a fortress-like balance sheet, a byproduct of their prodigious free cash flow generation of about $50 billion or more in each of the last three fiscal years. Rumors of the iPhone’s demise have once again been greatly exaggerated. With the pent -up demand for the upcoming iPhone 8, free cash flow may challenge the previous fiscal high of nearly $70 billion generated in fiscal 2015. While the stock has performed superbly over the past few quarters, we have pared back positions purely to limit our absolute weighting. That said, we continue to maintain a healthy overweight relative to the benchmark as we think the market continues to under-appreciate Apple's competitive positioning and long-term opportunities for profitable growth.

From David Rolfe (Trades, Portfolio)'s Wedgewood Partners first-quarter 2017 shareholder letter.

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David Rolfe Comments on Apple Inc. - Jan 16, 2017

We should note successful examples of the use of outsized debt by our own invested companies. Consider Apple. Apple (NASDAQ:AAPL) generates enough cash ($65 billion in operating cash TTM) that even after spending $10 billion in R&D in fiscal 2016, the Company’s balance sheet liquidity grew almost $10 billion, to over $250 billion. This trove is trapped overseas awaiting a change in U.S. repatriation laws - a potentially significant bullish event for shareholders. In the meantime, in order to return this cash back to shareholders, the Company has issued over $75 billion in debt.

Further, and often left unremarked by Wall Street’s finest, is the rapid, and accelerating growth in Apple’s R&D spending over the past few years. Clearly the Company does not need to spend $10-$15 billion per year to sustain the evolutionary upgrades to the iPhone, iPad, Apple Watch and/or new video streaming services. Apple’s nascent automotive program Project Titan may not be at all about creating a complete autonomous driving car (Apple Car), but rather the creation of software that makes existing cars smarter – or even autonomous. Now that is a huge, creatively disruptive opportunity.

From David Rolfe (Trades, Portfolio)'s fourth quarter 2016 Wedgewood Partners investor letter.



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David Rolfe Comments on Apple - Oct 21, 2016

During the quarter, Apple (NASDAQ:AAPL) was a top contributor to relative performance. Apple has been in portfolios for nearly a decade. Even though Apple is one of the most visible and widely followed businesses in our investment universe, we believe it has long suffered from the incorrect market perception that its customer relationships are largely transactional in nature. We see evidence of these "hit-driven" fears embedded in the systematic contraction of Apple's forward price-to-earnings (P/E) multiple. Apple's P/E multiple peaked in the fall of 2007 at about 38X (not long after the iPhone launched and the S&P 500 P/E peaked for that cycle) and has contracted to around 12.7X, albeit up from the 9X and 10x multiples seen earlier this year and in 2013. We earnestly admit that Apple probably does not deserve to trade at the 38X forward earnings2, yet we believe that Apple’s iOS franchise and “annuity-like” ecosystem has demonstrated an exceptional ability to retain and obtain repeat customers, while commanding over 90% of the profitability generated by smartphone manufacturers—qualities we think should help the stock generate extremely attractive returns at the current multiple.



From David Rolfe (Trades, Portfolio)'s Wedgewood Partners third-quarter 2016 shareholder letter.

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Spiros Segalas Comments on Apple - Aug 18, 2016

Apple (NASDAQ:AAPL), whose shares fell on a lull in major product cycles, was a major detractor from relative returns, along with Nike and Alexion Pharmaceuticals. Amazon.com, the Fund’s largest holding as of June 30, 2016, was the top contributor to relative returns.



From Spiros Segamas' Armiel Appreciation second quarter 2016 commentary.



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Gabelli Funds Comments on Apple - Aug 04, 2016

Apple (NASDAQ:AAPL) (5.1%) (AAPL – $95.60 – NASDAQ) designs Macs, arguably the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with the iPad and Apple Watch.



From the Gabelli Dividend Growth Fund second quarter 2016 commentary.



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David Rolfe Comments on Apple - Jul 13, 2016

Apple (NASDAQ:AAPL) has been a significant underperformer not only during the recent second quarter (-11.8%), but also for nearly a year now. The stock has fallen about - 28% on an absolute basis, from its high set back on July 20, 2015. This is the second time that the stock has been put through the wringer since late 2012 on fears of “peak” iPhone growth and the concomitant lack of innovation out of the skunk works in Cupertino. Given the surge of sales of the iPhone 6 in 2015 (pent up demand for a larger iPhone, plus significant demand from China), we are not surprised by the weaker year-over-year earnings comparisons.

The Apple stock advance-and-decline narrative has been pretty straightforward over the past half-dozen years. Given the consented narrative that Apple is “The iPhone Company” – and nothing but the iPhone – when forward analyst estimates of iPhone sales increase, the stock typically advances. When estimates are being cut, well, the stock typically declines, also. Mr. Market really is that binary on Apple’s stock price movements. We would argue, too, that Mr. Market is quite obtuse when it comes to the totality of Apple. Everything else that a rational investor would consider in accessing Apple as an investment is literally put in a vacuum when it comes to the stock. Valuation seems to matter not a wit. By any traditional valuation measure, both absolute and relative to other technology hardware companies, Apple’s stock, in our view, has long been cheap – but it gets cheaper still on estimate cuts. In fact, we would argue that Apple’s stock is currently valued (6.5X FCF ex-cash)2 as if to assume that the Company’s business prospects are little better than a coal mine in 10-year run-off mode.

Here are a few elements of the superiority – and we would argue, rarity – of the Company’s business model via their platform trifecta of hardware, software and services that should matter to investors: iPhone user base estimated at +450 million. Smartphone industry gross profit take of approximately 95%. An installed ecosystem base of over +1 billion sticky users. 13 million active App Store developers. 130 billion downloaded Apps. Relatedly, software services gross revenue business is at an annuity-like run-rate of $40 billion – with profit margins greater than Company average. Company operating margins of 30%. Connected software platforms that include iOS, MacOS and Watch OS. The Company’s near fanatic commitment to user privacy. Apple Watch unit sales of 11-13 million since launch. Over the past four calendar years the Company has generated nearly $216 billion in free cash flow, including $55 billion over the past four quarters. $250 billion in balance sheet liquidity. Tens of billions of stock buybacks, in our view, below intrinsic value.

It could be argued that Apple’s only significant competitor is itself. Sure, Android vendors such as Samsung, Huawei, Oppo, and Xiaomi, are competitors in that each does sell high-end smartphones, particularly to first-time smartphone buyers.

However, it's also the case that once one experiences the differentiated nature of a true high-end smartphone, many of those Android customers do find their way to Apple for a significantly better user ecosystem. At this juncture, the consensus on Apple is that the iPhone 7 will be a boring upgrade and thus a flop. Again, the current valuation of the stock implies that Apple is once again a permanently impaired growth company. Given that Apple is our second largest position, we certainly don’t share such dire views.

From David Rolfe (Trades, Portfolio)'s second quarter 2016 Wedgewood Partners Client Letter.

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David Einhorn Comments on Apple - May 06, 2016

We continue to own Apple (NASDAQ:AAPL), which has traded down to a single-digit PE of a bear case earnings. We believe there is tremendous value in Apple’s brand and growing global customer base that periodically buys new devices and increasingly buys additional services.

From David Einhorn (Trades, Portfolio)'s first quarter 2016 conference call.

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Weitz Funds Comments on Apple - Apr 25, 2016

Apple (NASDAQ:AAPL), creator of the iPhone, iPad and Mac, makes a return to the Research Fund (previously eliminated in the third quarter of 2014). Investors, in our view, have become too pessimistic about Apple’s ability to grow sales of the iPhone and to globally monetize its large installed base of iOS devices. In addition to its growth prospects, Apple continues to return significant amounts of cash to shareowners.



From Weitz Funds' Research Fund commentary 1st quarter.



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Signature Select Canadian Fund Comments on Apple - Mar 09, 2016

Apple (NASDAQ:AAPL) faces investor uncertainty with respect to its next product cycle of the iPhone. The stock is not expensive.

From the Signature Select Canadian Fund (Trades, Portfolio) Q4 Market Commentary.

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Ratios

vs
industry
vs
history
PE Ratio 18.04
AAPL's PE Ratio is ranked higher than
62% of the 1708 Companies
in the Global Consumer Electronics industry.

( Industry Median: 19.94 vs. AAPL: 18.04 )
Ranked among companies with meaningful PE Ratio only.
AAPL' s PE Ratio Range Over the Past 10 Years
Min: 9.32  Med: 15.4 Max: 47.76
Current: 18.04
9.32
47.76
Forward PE Ratio 15.77
AAPL's Forward PE Ratio is ranked higher than
64% of the 130 Companies
in the Global Consumer Electronics industry.

( Industry Median: 16.00 vs. AAPL: 15.77 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 18.04
AAPL's PE Ratio without NRI is ranked higher than
63% of the 1704 Companies
in the Global Consumer Electronics industry.

( Industry Median: 20.00 vs. AAPL: 18.04 )
Ranked among companies with meaningful PE Ratio without NRI only.
AAPL' s PE Ratio without NRI Range Over the Past 10 Years
Min: 9.33  Med: 15.38 Max: 48.8
Current: 18.04
9.33
48.8
Price-to-Owner-Earnings 18.26
AAPL's Price-to-Owner-Earnings is ranked higher than
63% of the 1067 Companies
in the Global Consumer Electronics industry.

( Industry Median: 22.96 vs. AAPL: 18.26 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
AAPL' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 7.52  Med: 12.05 Max: 34.72
Current: 18.26
7.52
34.72
PB Ratio 6.36
AAPL's PB Ratio is ranked lower than
91% of the 2260 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.74 vs. AAPL: 6.36 )
Ranked among companies with meaningful PB Ratio only.
AAPL' s PB Ratio Range Over the Past 10 Years
Min: 2.71  Med: 5.19 Max: 11.28
Current: 6.36
2.71
11.28
PS Ratio 3.82
AAPL's PS Ratio is ranked lower than
81% of the 2263 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.11 vs. AAPL: 3.82 )
Ranked among companies with meaningful PS Ratio only.
AAPL' s PS Ratio Range Over the Past 10 Years
Min: 1.86  Med: 3.48 Max: 6.79
Current: 3.82
1.86
6.79
Price-to-Free-Cash-Flow 17.41
AAPL's Price-to-Free-Cash-Flow is ranked higher than
58% of the 840 Companies
in the Global Consumer Electronics industry.

( Industry Median: 18.87 vs. AAPL: 17.41 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
AAPL' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 7.89  Med: 12.6 Max: 37.28
Current: 17.41
7.89
37.28
Price-to-Operating-Cash-Flow 14.10
AAPL's Price-to-Operating-Cash-Flow is ranked higher than
51% of the 1092 Companies
in the Global Consumer Electronics industry.

( Industry Median: 12.79 vs. AAPL: 14.10 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
AAPL' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 6.69  Med: 10.65 Max: 30.57
Current: 14.1
6.69
30.57
EV-to-EBIT 13.47
AAPL's EV-to-EBIT is ranked higher than
63% of the 1768 Companies
in the Global Consumer Electronics industry.

( Industry Median: 15.66 vs. AAPL: 13.47 )
Ranked among companies with meaningful EV-to-EBIT only.
AAPL' s EV-to-EBIT Range Over the Past 10 Years
Min: 5  Med: 10.9 Max: 34.7
Current: 13.47
5
34.7
EV-to-EBITDA 11.79
AAPL's EV-to-EBITDA is ranked higher than
56% of the 1883 Companies
in the Global Consumer Electronics industry.

( Industry Median: 12.04 vs. AAPL: 11.79 )
Ranked among companies with meaningful EV-to-EBITDA only.
AAPL' s EV-to-EBITDA Range Over the Past 10 Years
Min: 4.8  Med: 9.8 Max: 32.4
Current: 11.79
4.8
32.4
EV-to-Revenue 3.91
AAPL's EV-to-Revenue is ranked lower than
80% of the 2258 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.13 vs. AAPL: 3.91 )
Ranked among companies with meaningful EV-to-Revenue only.
AAPL' s EV-to-Revenue Range Over the Past 10 Years
Min: 1.2  Med: 3.3 Max: 6.2
Current: 3.91
1.2
6.2
PEG Ratio 1.45
AAPL's PEG Ratio is ranked higher than
59% of the 816 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.71 vs. AAPL: 1.45 )
Ranked among companies with meaningful PEG Ratio only.
AAPL' s PEG Ratio Range Over the Past 10 Years
Min: 0.13  Med: 0.31 Max: 1.42
Current: 1.45
0.13
1.42
Shiller PE Ratio 29.27
AAPL's Shiller PE Ratio is ranked higher than
54% of the 453 Companies
in the Global Consumer Electronics industry.

( Industry Median: 29.37 vs. AAPL: 29.27 )
Ranked among companies with meaningful Shiller PE Ratio only.
AAPL' s Shiller PE Ratio Range Over the Past 10 Years
Min: 20.66  Med: 46.66 Max: 157.88
Current: 29.27
20.66
157.88
Current Ratio 1.24
AAPL's Current Ratio is ranked lower than
82% of the 2275 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.95 vs. AAPL: 1.24 )
Ranked among companies with meaningful Current Ratio only.
AAPL' s Current Ratio Range Over the Past 10 Years
Min: 1  Med: 2.37 Max: 3.39
Current: 1.24
1
3.39
Quick Ratio 1.20
AAPL's Quick Ratio is ranked lower than
62% of the 2275 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.44 vs. AAPL: 1.20 )
Ranked among companies with meaningful Quick Ratio only.
AAPL' s Quick Ratio Range Over the Past 10 Years
Min: 0.97  Med: 2.03 Max: 3.38
Current: 1.2
0.97
3.38
Days Inventory 8.95
AAPL's Days Inventory is ranked higher than
97% of the 2241 Companies
in the Global Consumer Electronics industry.

( Industry Median: 72.37 vs. AAPL: 8.95 )
Ranked among companies with meaningful Days Inventory only.
AAPL' s Days Inventory Range Over the Past 10 Years
Min: 3.26  Med: 6.26 Max: 9.04
Current: 8.95
3.26
9.04
Days Sales Outstanding 35.77
AAPL's Days Sales Outstanding is ranked higher than
88% of the 1919 Companies
in the Global Consumer Electronics industry.

( Industry Median: 76.01 vs. AAPL: 35.77 )
Ranked among companies with meaningful Days Sales Outstanding only.
AAPL' s Days Sales Outstanding Range Over the Past 10 Years
Min: 18.1  Med: 27.33 Max: 34.86
Current: 35.77
18.1
34.86
Days Payable 156.12
AAPL's Days Payable is ranked higher than
92% of the 1832 Companies
in the Global Consumer Electronics industry.

( Industry Median: 63.85 vs. AAPL: 156.12 )
Ranked among companies with meaningful Days Payable only.
AAPL' s Days Payable Range Over the Past 10 Years
Min: 76.58  Med: 90.23 Max: 126.93
Current: 156.12
76.58
126.93

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 1.44
AAPL's Dividend Yield % is ranked lower than
54% of the 1917 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.82 vs. AAPL: 1.44 )
Ranked among companies with meaningful Dividend Yield % only.
AAPL' s Dividend Yield % Range Over the Past 10 Years
Min: 0.38  Med: 1.78 Max: 2.78
Current: 1.44
0.38
2.78
Dividend Payout Ratio 0.25
AAPL's Dividend Payout Ratio is ranked higher than
97% of the 1320 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.62 vs. AAPL: 0.25 )
Ranked among companies with meaningful Dividend Payout Ratio only.
AAPL' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.06  Med: 0.26 Max: 0.29
Current: 0.25
0.06
0.29
3-Year Dividend Growth Rate 9.80
AAPL's 3-Year Dividend Growth Rate is ranked higher than
57% of the 1026 Companies
in the Global Consumer Electronics industry.

( Industry Median: 6.30 vs. AAPL: 9.80 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
AAPL' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: 0  Med: 0 Max: 73.5
Current: 9.8
0
73.5
Forward Dividend Yield % 1.44
AAPL's Forward Dividend Yield % is ranked lower than
60% of the 1783 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.17 vs. AAPL: 1.44 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 6.18
AAPL's 5-Year Yield-on-Cost % is ranked higher than
87% of the 2392 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.27 vs. AAPL: 6.18 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
AAPL' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.63  Med: 7.63 Max: 11.92
Current: 6.18
1.63
11.92
3-Year Average Share Buyback Ratio 4.40
AAPL's 3-Year Average Share Buyback Ratio is ranked higher than
97% of the 1430 Companies
in the Global Consumer Electronics industry.

( Industry Median: -2.90 vs. AAPL: 4.40 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
AAPL' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -9.5  Med: -1.7 Max: 5.4
Current: 4.4
-9.5
5.4

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 6.75
AAPL's Price-to-Tangible-Book is ranked lower than
86% of the 2199 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.92 vs. AAPL: 6.75 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
AAPL' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 1.28  Med: 3.47 Max: 10.63
Current: 6.75
1.28
10.63
Price-to-Intrinsic-Value-Projected-FCF 1.01
AAPL's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
70% of the 1289 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.35 vs. AAPL: 1.01 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
AAPL' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.47  Med: 1.29 Max: 4.26
Current: 1.01
0.47
4.26
Price-to-Intrinsic-Value-DCF (Earnings Based) 0.63
AAPL's Price-to-Intrinsic-Value-DCF (Earnings Based) is ranked higher than
91% of the 95 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.42 vs. AAPL: 0.63 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-DCF (Earnings Based) only.
AAPL' s Price-to-Intrinsic-Value-DCF (Earnings Based) Range Over the Past 10 Years
Min: 0.35  Med: 0.53 Max: 1.75
Current: 0.63
0.35
1.75
Price-to-Median-PS-Value 1.10
AAPL's Price-to-Median-PS-Value is ranked higher than
58% of the 1995 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.08 vs. AAPL: 1.10 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
AAPL' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.07  Med: 0.43 Max: 1.88
Current: 1.1
0.07
1.88
Price-to-Peter-Lynch-Fair-Value 1.35
AAPL's Price-to-Peter-Lynch-Fair-Value is ranked lower than
52% of the 517 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.15 vs. AAPL: 1.35 )
Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
AAPL' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.4  Med: 0.63 Max: 1.77
Current: 1.35
0.4
1.77
Price-to-Graham-Number 2.32
AAPL's Price-to-Graham-Number is ranked lower than
70% of the 1566 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.30 vs. AAPL: 2.32 )
Ranked among companies with meaningful Price-to-Graham-Number only.
AAPL' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.77  Med: 1.81 Max: 5.32
Current: 2.32
0.77
5.32
Earnings Yield (Greenblatt) % 7.42
AAPL's Earnings Yield (Greenblatt) % is ranked higher than
72% of the 2322 Companies
in the Global Consumer Electronics industry.

( Industry Median: 4.54 vs. AAPL: 7.42 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
AAPL' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 2.9  Med: 9.2 Max: 19.8
Current: 7.42
2.9
19.8
Forward Rate of Return (Yacktman) % 18.92
AAPL's Forward Rate of Return (Yacktman) % is ranked higher than
76% of the 1264 Companies
in the Global Consumer Electronics industry.

( Industry Median: 8.73 vs. AAPL: 18.92 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
AAPL' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 18.5  Med: 64.6 Max: 116.4
Current: 18.92
18.5
116.4

More Statistics

Revenue (TTM) (Mil) $239,176.00
EPS (TTM) $ 9.73
Beta1.30
Short Percentage of Float0.83%
52-Week Range $135.28 - 180.10
Shares Outstanding (Mil)5,074.01

Analyst Estimate

Sep18 Sep19 Sep20
Revenue (Mil $) 261,722 269,114 273,460
EBIT (Mil $) 68,675 69,845 68,352
EBITDA (Mil $) 78,157 82,373 81,231
EPS ($) 11.09 12.51 13.43
EPS without NRI ($) 11.09 12.51 13.43
EPS Growth Rate
(Future 3Y To 5Y Estimate)
13.72%
Dividends per Share ($) 2.67 3.01 3.26

Piotroski F-Score Details

Piotroski F-Score: 55
Positive ROAY
Positive CFROAY
Higher ROA yoyN
CFROA > ROAY
Lower Leverage yoyN
Higher Current Ratio yoyY
Less Shares Outstanding yoyY
Higher Gross Margin yoyN
Higher Asset Turnover yoyN

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