Denise Abreu-Alvarez's List: Activity 2.5 Researching Credible Connections

• The article examines the rise, fall and current state of the Apple Computer Co. and the life and passion of its founder and chief executive officer (CEO), entrepreneur Steve Jobs. It provides an overview of the successful products brought by Apple to the market. A brief history of the company is provided. A discussion on the challenge facing Jobs to revive the dominance of his company in light of weak economic conditions is given. It also explores personal challenges to Jobs as he continues to provide innovative products.

• The article discusses how products from computer manufacturer Apple have become more complicated and less user friendly despite its original mission statement being simplicity. Topics include how former chief executive officer (CEO) Steve Jobs created the company's uniformity, how its size and scope contribute to its growing complexity, and how its user-experience compares to competitors such as Google, Amazon, and Microsoft.

• Apple Valuation Points to ‘Policy Proof’ Stock: Chart of the Day
• Apple Inc.’s valuation shows the stock will shelter investors from the Federal Reserve’s policy moves, according to Gina Martin Adams, a Wells Fargo Securities LLC strategist.
• pple’s price-earnings ratio is about 30 percent below its peak for the current bull market in U.S. stocks, which started in March 2009. The iPhone maker closed yesterday at 16.3 times profit.

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• Apple Inc Has Emerging Issues
• Earlier this year Apple Inc. purchased Beats Music and Electronics for $3 billion. Beats is a streaming service that does not offer downloads like Apple’s iTunes. Apple charges $10 per month for the service. It is one of the company’s emerging issues.
• While effective streaming revenues are not a major issue to the company’s bottom line, a larger iceberg lies ahead. It could find itself liable for $8 billion in back taxes to the European Commission (EC).
• The EU began investigating the iPhone maker in June after a U.S. Senate committee accused them and other American companies of shielding billions of dollars in taxes by entering into inappropriate deals with the Irish government. According to the EU, all companies must be treated equally and disapproves of special deals for tax evasion purposes. If improprieties are found, the company would have to pay a record fine of billions of euros and be subject to an increased tax rate going forward.
• Apple Inc. is still a solid corporation and these emerging issues could make it more difficult for the company to do business going forward. Increased taxes would certainly affect the bottom line, while market downgrades will ultimately make it more expensive for the company to raise capital.

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