Apple – Dell – HP

Apple Inc.

COO: Tim Cook Previous VP of Corporate Material at Compaq Reduced inventory levels and streamlined supply chain, increasing margins Acted as CEO when Steve Jobs took leaves of absences CFO: Peter Oppenheimer Previous CFO of ADP and IT Consultant at PwC Steve Jobs: Co-Founder and CEO Emphasizes Design and Aesthetic Appeal Awarded over 230 patents or Patent Applications Previous CEO of Pixar Animation Studios and Current Board Member of Walt Disney Company

Strengths  Innovative  Brand, Aesthetic, Design  Marketing and Accessibility  Product Development  Steve Jobs Weaknesses  Business Practices  Expensive  Product Defects and Complaints  Not Share-Holder Friendly  Steve Jobs Opportunities  Advancement in Technology  Improvement in Technology  Rapid Changing Industry and Response to Client Feedback  Brand Loyalty  Market Diversification and Online Presence Threats  Competition  High Priced Products  Economic Crisis  Product Substitution Effect  Copycat Effect

9/25/20109/26/2009Amount IncreasePercent Increase Total Current Assets41,678, ,555, ,123, % Total Current Liabilities20,722, ,506,00 0 9,216, % Total Revenue65, , %

9/25/2010% of Total9/26/2009% of Total Current Assets Cash/Cash Equivalents11,261,00027%5,263,00017% Short Term Investments14,359,00034%18,201,00058% Net Receivables11,560,00028%6,192,00020% Inventory1,051,0003%455,0001% Other Current Assets3,447,0008%1,444,0005% Total Current Assets41,678,00031,555,000 Current Liabilities Accounts Payable17,738,00086%9,453,00082% Other Current Liabilities2,984,00014%2,053,00018% Total Current Liabilities20,722,00011,506,000 Stockholders' Equity Common Stock10,668,00022%8,210,00026% Retained Earnings37,169,00078%23,353,00074% Other Stockholder Equity-46,0000%77,0000% Total Stockholder Equity47,791,00031,640,000

1984: Founded, 26 years ago 1987: Started International Operation 1988: Public on NASDAQ 1988: 3.5 Million shares; $8.5 per share 2011: 6.15 Million shares; $15.73 per share 1991: First Notebook 1996: Initiated Internet Operation 2011:No.38 on the Fortune 500 (2011) Principle operating Units: Dell Americas, Dell Europe; Dell Asia Pacific –Japan; Middle East and Africa.

Michael Dell: Chairman, CEO, Founder Founded Dell at age 19 Youngest CEO ever to earn a ranking on the Fortune 500: members in Executive Leadership Team 12 members in Board of Directors Paul Bell: President of the Public and Large Enterprise business MBA from Yale School of Organization and Management. 14 years in Dell; Born in North Africa;7 years in Europe; Broad international experience; Deep insights into all segments of the company Steve Schuckenbrock: Dell Service President Former role in Dell: Chief Information Officer President of Large Enterprise

Strengths Customization Diversified Products Business operation Customer service Weaknesses Labor-intensive Assembling Risks for quality management Inflexible supply Chain Opportunities Customer service Cohesion between depts. More customization Threats Not standing out from the rest Not keeping up with technology changes Competitors producing at low cost

Stock Activity Last Price Wk High Wk Low11.34 Volume29.44 Mil Avg Daily Vol (13 Wks)23.63 Mil 50-Day Moving Average Day Moving Average13.86 Volatility (beta)1.42 Fundamental Data Debt/Equity Ratio0.77 Gross Margin18.53% Net Profit Margin4.28% Shares Outstanding1.91 Bil Market Cap30.2 Bil EPS1.35 Institutional Ownership70.50%

6 Design Centers located mainly in U.S. Singapore, Mainland China, Taiwan. Transformation on the way: Data Center! Business will be centered on services and the bigger gear used in data centers — server computers, storage and networking equipment.

Total Revenue61, , , , , Gross Profit11, , , , , Net Income2, , , , , Source:

Total Assets38, , , , , Total Liabilities30, , , , , Total Equity7, , , , , Source: %3aDELL&stmtView=Ann

1939: HP was founded by Bill Hewlett and Dave Packard 1947: HP incorporated with Revenue – 851,287 and 111 employees 1957: HP went public and employees receive stock 1966: HP invented its 1st computer- HP 2116A 1980: HP’s 1st PC 1981: HP moved to China 1983: HP introduced Touch screen PC 2002: HP and Compaq merged 2006: HP acquired Mercury Interactive Corp. 2008: HP acquired Electronic Data Systems Corporation (EDS) 2010: HP acquired Palm HPQ Net Revenue in 2010: B Current employees: 324,600

Léo Apotheker: President & CEO Main focuses for H.P.: innovation, employee engagement, and operational efficiency Former CEO of SAP Founded & COO of ECsoft BV Held various leadership positions in: ABP Partners, McCormack & Dodge Europe, S.W.I.F.T. and Altex GmbH. Randall D. Mott: VP & CIO responsible for the global information technology (IT) strategy and all of the company's IT assets Former VP and CIO for Dell Inc. & Wal-Mart Catherine A. Lesjak: VP & CFO Served as CFO since Jan 1, 2007 Served as interim chief executive officer of HP from Aug 2010 to Oct 2010 Was previously HP’s senior vice president and treasurer

Strengths -Well-established brand/brand reputation -Wide variety of products and services -World’s biggest computer hardware Weaknesses - Large long term debts (21B) -Hardware supplies complaints/bugs -Lack of in-house management consulting division Opportunities -Emerging markets -Government shifting to cloud computing -Acquisition of EDS -New technological innovations Threats -Major competitors in industry -World recession—lower prices -Computer substitutes -Retaining technical talent

Market Cap (intraday)88.31 B Enterprise Value (May 9, 2011)98.85B Trailing P/E (ttm, intraday):10.41 Revenue (ttm):127.16B Total Cash (mrq):9.93B Total Debt (mrq):20.47B Current Ratio (mrq):1.18 Beta0.99

Historical Prices Chart: Stock price: $40.81 Declining (As of May 6th, 2011)

HP’s executive changes HP feel pressure from IPad2 Benefit From Government's Shift to Cloud

Total Revenue126, , , , , Gross Profit30, , , , , Net Income8, , , , ,198.00

HP - Vertical Analysis Jan 31, 2011 % of Total Oct 31, 2010% of Total Cash/Cash Equivalents$9,934, %$10,929, % Net Receivables$19,534, %$21,467, % Short Term Investments--0.00%$5, % Inventory$6,747, %$6,466, % Other Current Assets$15,189, %$15,317, % Total Current Assets$51,404,000$54,184,000 Accounts Payable32,508, %$34,719, % Short/Current Long Term Debt$3,381, %$7,046, % Other Current Liabilities$7,721, %$7,638, % Total Current Liabilities$43,610,000$49,403,000 Common Stock$22, %$22, % Retained Earnings$34,005, %$32,695, % Capital Surplus$10,877, %$11,569, % Other Stockholder Equity($3,698,000)-8.974%($3,837,000)-9.474% Total Current Assets$41,206,000$40,499,000

Total Assets124, , , , , Total Liabilities84, , , , , Total Equity40, , , , ,144.00

HP – Horizontal Analysis Total Asset124,503,000114,799, % Total Liability84,054,00074,282, % Total Equity40,449,00040,517, %