Friday, October 28, 2011

10-K: Apple Growing

Anthony Nelzin Periodically, the SEC (Securities and Exchange Commission) Requires companies (listed or not, if Their capital IS More than 500 Held by Shareholders) to Provide reports. Each quarter, Provide the Form 10-Q, and in case of major changes Such as the departure of the CEO, They must complete the Form 8-K. The Most interesting IS Certainly the Form 10-K, Which Takes Stock of the Year. Apple HAS ITS closed fiscal year, to table it Comes That document Along With A Hundred pages we propose to summarize.

Operational Risk

The 10-K report Is A Rather unusual type: the gendarme of the US stock market Requires companies to take stock of Their Activities, That Is, Identify Their Strengths Weaknesses aussi purpose. It Is Malthus Heavily loaded with Operational Risk That May influence - real or not - on the Financial Health of the Concerned company.

The production line

If Apple Stiller Has plants in Cork (Ireland) and Elk Grove (California), first and foremost They Are reserved for the final assembly of machines (Including custom configurations), and are lined with call center and logistics platforms. Most of Apple's manufacturing activity IS Performed by Subcontractors Including Asian and Chinese.

Dependence on Subcontractors Some Of These Is An Operational Risk to Apple: if the Cupertino company IS ITS Trying to diversify sources of supply maximum, it uses a single source for some components. This is for example the case for the image sensor of the iPhone 4S (Sony) for the aluminum unibody Hull (Catcher Technologies), for the A5 processor (Samsung), or felt for the Smart Cover (a Vietnamese Manufacturer).

Specialty teas partnerships allow Apple to Develop custom components and high quality together with the Manufacturers Also at risk are intended. In case of technical Problems, the production line Can Be Challenged: Apple recall, for example the risk of natural hazards as earthquakes or floods Such Japanese Thai, Which Disrupted Activities of the ITS partners. Additional Risks exist, Including legal and relational: The Relationship Between Apple and Samsung Semiconductor IS NOT looking good legal disputes Because Of Between Apple and Samsung Electronics.

The management team and Employees

Apple says in veiled terms: much of ITS IS success due to the vision of Steve Jobs, CEO from March 1998 to August 2011 (interim from March 1998 to January 2000), and Its Relationship with management teams and Board of Directors. The Ability of Apple To Have An excellent management team (the one in place, headed by Tim Cook, Apple's success built over the years 2000), to keep (Tim Cook IS related to Apple for a Financial agreement 10 years), and retain top talent and new ones ATTRACT Is the Key to the Renewal of historical shots of brilliance last decade.

Currency fluctuations

Among Various Risks, Apple Noted That the fluctuation of currency, Including the undervaluation of some currencies against-the dollar - a direct reference to the situation of the Chinese yuan, of Which Apple Is A victim Against Her Will (read: Apple victim of the trade War Between China and US?). Beyond the Political Pressures Against a background of trade war, the currency leads to the permanent Adjustment of exchange rates charged by Apple, with the risk rising That market has dampened Prices in the Enthusiasm of the Customers.

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