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Apple (AAPL)HeadquartersCupertino, CAAcquisition Price Per Share: 523.69 Shares:? Total Cost:?Product PortfolioApple Inc. is an American multinational company that designs, develops, and sells consumer electronics, personal computers, and computer software. It markets mobile communication and media devices, personal computers, and portable digital music players. Its most commonly known products are the Mac line of their computers, the iPod music player, the iPad tablet computer, and the iPhone smart phone. The consumer software it utilizes includes the OS X and the iOS operating systems, the Safari web browser, the iTunes media browser, and the iWork and iLife suites. Apple sells their products through their popular retail stores, online stores, and direct sales force. The company has 408 retail stores in fourteen different countries. A great portion of its sales go to consumers, small and mid-sized businesses; schools, and government customers. Reasons for the Acquisition The main reason my teammates and I selected this stock was its strong StockScouter and Analyst Ratings. Apple Inc. is rated a 10 out of 10 on MSN Money’s StockScouter ratings. Obviously, this is a strong rating from the analysts which goes on to say that the stock is expected to significantly outperform the market over the next six months with average risk. At the time of the buy, 27 analysts had the stock as a strong buy, 4 with the stock as a moderate buy, and 7 with the stock as a hold. In context that is 31 analysts who tell you to buy that stock in relation to only 7 who do not suggest that you buy the stock. That is very strong evidence from the analysts with inside information that graded this company.Another strong reason to invest in Apple Inc. is that it makes up the majority of the cell phone market in the U.S. In the three recent months ending in October, Apple made up 40.6% of the market while Samsung had 25.4% and Motorola had 7% of the market. Apple’s position is up 40.4% from last July. A key indicator that it will continue to rise at an even higher rate is the release of the newly released iPhone 5s and 5c. These iPhones have been noted as having a lot of upgrades from the previous iPhone.`Apple’s dividends have risen 15% in 2013. Apple has a lot of sources of money income. The company generated $147 billion in 147 billion in balance sheet cash and liquid investments. Apple generates tons of money on a regular basis. Over the last 12 months, Apple has produced $53.6 billion in cash flows from operations and investments took only 8.2 billion of that away. This allowed Apple to put almost 10.6 billion in dividends and 22.9 billion to share repurchases from last year.Another reason my teammates and I decided to invest in Apple is because of the holiday season. Apple has upgraded its iPad and iPhone before the holiday season and the two appear to be selling well so far. According to DataScout, Apple products were the most-wanted black Friday items. Apple’s 16 GB non-Retina iPad mini Tablet was the most preferred item by customers at Walmart. Also, at target, Apple’s latest full-size 16GB iPad Air Tablet was the most popular item at Target. As my group anticipated, Apple has had great sales during the Holiday season.Apple Inc. continues to make key innovations in the technology industry. In addition to the new iPhone 5c and 5s, Apple has released an iPad mini, iPad Air, and also introduced the new iOS 7 software. A key thing to note is with the new software released it is expected to create a replacement cycle for the previous iPhone 4, 4s, and 5 to the new iPhone 5c and 5s. Apple CEO Tim Cook has called the new iOS 7 the biggest change in iOS since its inception. The new software iOS7 brings an entirely new interface, an always-ready control panel, and a new notification center. Another key thing to note is that you must have a newer Apple product to receive this new software, which will lead to an increase in sales of the new products.Another important thing to note from the newly launched iPhone 5c is that it is a cheaper phone than previous iPhones and is expected to expand to markets overseas that couldn’t afford the other iPhones. The mid-range priced iPhone 5c gives Apple the opportunity to expand to markets such as China, whose overall market is very sensible to price. Also, the iPhone 5c has a lot of new colors that haven’t been on iPhones before. This newly released feature will alow Apple to expand into the younger, less loyal audience that craves new and refreshed, rather than stable and predictable. ................
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