Science_Work

Apple’s investments outside R&D spur innovation Apple Inc., together with subsidiaries, designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players; and sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Its products and services include iPhone, iPad, Mac, iPod, Apple TV, the iOS and Mac OS X operating systems, iCloud, and various accessory and support offerings, as well as a range of consumer and professional software applications. The company sells its products and services to consumers, small and mid-sized business, education, enterprise, and government customers through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In addition, it offers various third-party iPhone, iPad, Mac, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals, through its online and retail stores; and digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store. As of September 24, 2011, the company had 357 retail stores, including 245 stores in the United States and 112 stores internationally. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California. OUTCOME PRICE Net sales £39,186 £24,667 £85,519 £51,408 Cost of sales £20,622 £14,449 £46,252 £30,892 Gross margin £18,564 £10,218 £39,267 £20,516 Research and development £841 £581 £1,599 £1,156 Selling, general and administrative £ 2,339 £1,763 £4,944 £3,659 Total operating expenses £3,180 £2,344 £6,543 £4,815 Operating income £15,384 £7,874 £32,724 £15,701 Other income and expense £148 26 £285 £162 Income before provision for income taxes 15,532 7,900 33,009 15,863 Provision for income taxes 3,910 1,913 8,323 3,872 Net income $ 11,622 $ 5,987 $ 24,686 $ 11,991 Basic $ 12.45 $ 6.49 $ 26.48 $ 13.02 Diluted $ 12.30 $ 6.40 $ 26.17 $ 12.83 Shares used in computing earnings per share: Basic 933,582 923,196 932,265 921,245 Diluted 944,893 935,944 943,185 934,549 Fair Value Measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between Market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs Used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – 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 . Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants Would use in pricing the asset or liability. Business profit The Company sold 35.1 million iPhones in the quarter, representing 88 percent unit growth over the year-ago quarter. Apple sold 11.8 million iPads during the quarter, a 151 percent unit increase over the year-ago quarter. The Company sold 4 million Macs during the quarter, a 7 percent unit increase over the year-ago quarter. Apple sold 7.7 million iPods, a 15 percent unit decline from the year-ago quarter. We’re thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter,” said Tim Cook, Apple’s CEO. “The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver. Apple designs Macs, the best personal computers in the world, along with OS X, iLife, work 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 iPad.