Apple's 10-K 2005 Financial Details

[Bonte]

I have 1000 shares and value has tripled for me so i'm not complaining. But i refuse to sell out, with the Macintel i hope for a much bigger market-share so i'm taking the plunge. I currently don't own other stock so i'm a real nutcase.

Look at the sales figures, a lot of people are waiting for the Macintel but unit sales are already up 30%. Don't give me the crap about pro's buying PPC before its to late, PPC is going to be for sale well into 2007. Its going to boom big time the next 2 years so double or triple the current price isn't just dreaming on my part.

 

[DrFrankTM]

Now is still the time to buy...

I own some AAPL stock. It STILL is the time to buy, not sell. Right before the switch to Intel processors was announced, a share was worth somewhere around 35$ (US). It might be a few bucks higher or lower, but around there anyways. Intel processors and the ability to install Windows - if and when the latter happens - will boost sales in a BIG way. As of now, the stock is still riding the iPod wave, but the real gains are still mostly ahead... I'm pretty confident that the stock will rise to 100$ within (probably much less than) a year. Personally, I think the stock will be a reasonably safe and well-performing investment for at least a couple of years (and probably more). I know I'll be keeping mine for as long as I can!!!

Of course, as I mentioned, I own some stock, so I'm biased: If you join the stock-buying frenzy, it DOES mean more money for me.

 

[Fiveos22]

- Research and Development increased (up 9%)

That's why I love this company.

 

[ShavenYak]

stock

I've made enough on my AAPL to buy a 30" Cinema display... too bad it's in a retirement account. I'm expecting $100/share by June... more if the Mac Mini Media Monster materializes.

 

[michaelrjohnson]

The "bubble" hasn't burst yet. I'm excited to see what appears to be steady sustainable growth from everybody's favorite fruit company!

 

[mj_1903]

http://www.mygadgetbag.com/Home/tab...25-Billion-to-Secure-Flash-Memory-Supply.aspx

http://news.techwhack.com/2511/211140-apple-secures-flash-memory-supply-deal-for-125-billion/

http://news.yahoo.com/s/nm/20051121/tc_nm/apple_flash_dc

http://news.morningstar.com/news/DJ/M11/D21/200511211735DOWJONESDJONLINE000649.html?pgid=wwhome1d

https://forums.macrumors.com/threads/162837/

As I said, they didn't just fork over $1.5 billion, they just signed contracts guaranteeing they would buy that much.

Nothing really remarkable and not very risky, it just shows how strange Apple are currently. Dell, Microsoft and Sony would probably be the only tech companies who would sign contracts that big these days so it is a big deal that Apple are joining them.

 

[YS2003]

The stock will go up and down at the whim of the market. I think the current stock price of Apple is valued at the high end (as a growth stock in the eye of the Wall Street establishment). I heard some analysts commented Apple will become a $20 Billion company in a few years (in 2007?) with the current growth curve it is experiencing.

In terms of the products and services Apple offer, this news does not necessarily mean better products in the future. As the company gots bigger, it gets more cautious about its product launch and marketing strategy. I hope Steve Jobs and his inner circle will maintain the core management culture in tact as that is what contributed Apple's current growth spurt.

One of the areas I am concerned about bigger Apple is how it is going to support its bigger customer base. I hope it does not farm out to the off-shore customer service support/tech support in the large scale. I had a bad experience with Compaq when I had to speak with a customer service center in India.

 

[akac]

As I said, they didn't just fork over $1.5 billion, they just signed contracts guaranteeing they would buy that much.

Nothing really remarkable and not very risky, it just shows how strange Apple are currently. Dell, Microsoft and Sony would probably be the only tech companies who would sign contracts that big these days so it is a big deal that Apple are joining them.

Actually, they said they'd pre-pay. Read here:

Apple Computer Inc. (Nasdaq:AAPL - news) on Monday said it would prepay $1.25 billion to secure its supply of flash memory used in its market-dominating iPod music players amid an expected surge in demand for the chips.

Apple said it would make the payment over the next three months ...

.

So that's 1.5 Billion over 3 months which was probably December, January, February. That's essentially forking over 1.5 billion as 3 months is not long term.

 

[steve_hill4]

Yes, they want to secure their future supply of flash chips, and you can see them making their way into larger capacity iPods over the next few years as well as other Apple products. Remember, they are buying $1.5 billion of supply up front, not $1.5 billion and that's it. They can always extend the deals, but they want to ensure when needed, it's there. They would pay this out over time anyway, they are just paying it upfront to ensure the deal is fixed.

If laptop manufacture gets to the point where a certain amount of storage needs to be solid state, Apple have the supply that others don't necessarily. They are looking to the future, and not having a shortage on their hands when needed.

 

[freeorangeshoes]

AAPL's share price is currently in line with future expectations. Expect it to increase another 5% or so by the end of the year. The introduction of the Intel Macs will be a big turning point - will either climb higher or bottom out to the 40-ish level.

Basically, hold it if you've got it. And I wouldn't be taking a short position on it anytime soon.

 

[Eastend]

Does anyone know how much Apple does spend on R&D?

David

PS - Where's Lacero on the first post here, asleep?

Do not think anybody replied to your question? Apple's total R&D expenditures in 2005 totaled $534 million in 2005, an increase of more than 9 per cent from 2004.

Brian

 

[mj_1903]

So that's 1.5 Billion over 3 months which was probably December, January, February. That's essentially forking over 1.5 billion as 3 months is not long term.

Of course, depending on which article we are reading here it is either $1.25 billion or $1.5 billion but it doesn't matter too much.

Lets just do some maths... Our estimates (a few employees having fun guesses about how many iPods will be sold this quarter) range from 15-20 million units. Lets say 16 million (I estimate 18 million) are sold and that 12 million of them contain flash components.

We estimate that the average price of a single flash chip being bought is about $90. So:

$90 x 12 million = $1.08 billion.

Instantly we have all those quarters flash supplies and enough stock to build another few million iPods for the beginning of the next quarter.

So what those numbers show is that Apple are simply buying flash stock at the normal rate, they have just guaranteed a supply of at least 12-14 million flash chips for their shuffle and Nano lines.

Hell the second article states:

They have reached long-term supply agreements with a group of flash memory components makers including Intel Corp. and Micron Technology Inc. for this purpose.

Which is exactly what I was saying.

 

[maestro55]

I feel the reason Apple is investing that money into the iPods is because as more and more people purchase the ipods, more and more people will be getting into the Apple culture. I believe that we will keep seeing an increase in Apple products being sold. I also hope that Apple can again become truley competitive in the education technology market.