Go to Apple’s website (investor.apple.com) and explore the website. Click on the

Question

Go to Apple’s website (investor.apple.com) and explore the website. Click on the "SEC Filings" link. Obtain the most recent SEC Form 10-K provided for Apple. Based on the information obtained from the website and your knowledge of the industry, prepare a professional report discussing the following items:

1. Apple's: • Sales • Total Assets • Net income • Cash flow from operating activities • Number of employees

2. What are Apple's products?

3. Who are Apple's competitors?

4. Who are Apple's customers?

5. Who are Apple's suppliers?

6. Who are Apple’s financial statement users?

7. How does Apple market and distribute its products?

8. What is Apple's basic business strategy (cost leadership or differentiation)?

9. What are critical business processes for Apple?

10. What accounting policies do Apple use to report the accounting information associated with critical business processes and what is the risk of material misstatement?

This memo is to be used for documenting the firm’s understanding of the client’s business and as a basis for determining the preliminary business risk assessment. Your memo should be double-spaced and addressed to the partner for the engagement (your instructor). Your firm demands polished, concise, professional analyses and writing.

Explanation / Answer

?1. Apple's: • Sales • Total Assets • Net income • Cash flow from operating activities • Number of employees For the fiscal year ended September 30, 2017.

Details

(Amount in millions $)

2. What are Apple's products?

The Company’s products and services include iPhone , iPad, Mac, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iOS, macOS , watchOS and tvOS operating systems, iCloud, Apple Pay, Apple care and a variety of accessory, service and support offerings.

3. Who are Apple's competitors?

4. Who are Apple's customers?

The Company’s customers are primarily in the consumer, small and mid-sized business, education, enterprise and government markets. The Company sells its products and resells third-party products in most of its major markets directly to consumers and small and mid-sized businesses through its retail and online stores and its direct sales force.

5. Who are Apple's suppliers?

All of the Company’s hardware products are currently manufactured by outsourcing partners that are located primarily in Asia, with some Mac computers manufactured in the U.S. and Ireland. A significant concentration of this manufacturing is currently performed by a small number of outsourcing partners, often in single locations. Certain of these outsourcing partners are the sole-sourced suppliers of components and manufacturers for many of the Company’s products.

6. Who are Apple’s financial statement users?

The main users (stakeholders) of financial statements are commonly grouped as follows:

Investor, Employees, Lenders, Government, Suppliers, Customers, General Public.

7. How does Apple market and distribute its products?

The Company sells its products and resells third-party products in most of its major markets directly to consumers and small and mid-sized businesses through its retail and online stores and its direct sales force.  The Company also employs a variety of indirect distribution channels, such as third-party cellular network carriers, wholesalers, retailers and value-added resellers.

8. What is Apple's basic business strategy (cost leadership or differentiation)?

The Company is committed to bringing the best user experience to its customers through its innovative hardware, software and services. The Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software and services to provide its customers products and solutions with innovative design, superior ease-of-use and seamless integration. As part of its strategy, the Company continues to expand its platform for the discovery and delivery of digital content and applications through its Digital Content and Services, which allows customers to discover and download digital content, iOS, Mac, Apple Watch and Apple TV applications, and books through either a Mac or Windows personal computer or through iPhone, iPad and iPod touch ® devices (“iOS devices”), Apple TV and Apple Watch. The Company also supports a community for the development of third-party software and hardware products and digital content that complement the Company’s offerings. The Company believes a high-quality buying experience with knowledgeable salespersons who can convey the value of the Company’s products and services greatly enhances its ability to attract and retain customers. Therefore, the Company’s strategy also includes building and expanding its own retail and online stores and its third-party distribution network to effectively reach more customers and provide them with a high-quality sales and post-sales support experience. The Company believes ongoing investment in research and development (“R&D”), marketing and advertising is critical to the development and sale of innovative products, services and technologies.

9. What are critical business processes for Apple?

Critical Business Processes:

1. The Company’s products and services compete in highly competitive global markets characterized by aggressive price competition. hence, continual improvement in product price, performance characteristics, rapid adoption of technological and product advancements is required

2. The Company distributes its products through cellular network carriers, wholesalers, national and regional retailers and value-added reselles. Hence it is one of the critical Business Process of the Company.

3. Company mainly depend on outside supplier for Components. Hence Company remains subject to significant risks of supply shortages and price increases.

10. What accounting policies do Apple use to report the accounting information associated with critical business processes and what is the risk of material misstatement?

The accounting methods Apple uses to report the accounting information associated with critical business processes. Further Apple follows Generally Accepted Accounting Principles (GAAP) when preparing and reporting financial statements in U.S. Adhering to GAAP will ensure that Apple is reporting true information and financial statements and will lower the risk of material misstatement

Particulars

Details

(Amount in millions $)

Apple's Sales 229,234 Total Assets 375,319 Net income 48,351 Cash flow from operating activities 63,598 Number of employees 123,000

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.