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AAPL A Outperform
Apple Inc NASDAQ Data as of 11/24/2023

SCHWAB EQUITY RATING BUSINESS SUMMARY

Source: Reuters
A Outperform
Data as of 11/24/2023 Last week's rating: A Outperform
Percentile Ranking: 8
Percentile Ranking: 9 Apple Inc. designs, manufactures and
Data as of 11/17/2023 markets smartphones, personal computers,
tablets, wearables and accessories, and sells
A 1-10 Strongly Outperform BUY Schwab Equity Ratings is a quantitative measure of the
a variety of related services. The Company's
equity's prospects for stock price appreciation over the next
B 11-30 Outperform BUY twelve months in relation to its market peers. product categories include iPhone, Mac,
For more details about the quantitative model's design and iPad, and Wearables, Home and
C 31-70 Marketperform HOLD intent, please review the Schwab Equity Ratings Foundations Accessories...
document.
For more details, see page 2.
D 71-90 Underperform SELL For more information on important disclosures please visit
page 4 within this report.
F 91-100 Strongly Underperform SELL OVERVIEW
Source: Reuters

PRICE VOLATILITY OUTLOOK Price as of 11/24/23 $189.97

Market Capitalization $2954.6 Billion
Medium Average price volatility Last week's rating: Medium Data as of 11/17/2023
Asset Class Large Cap
Data as of 11/24/2023
Beta 1.31
Price Volatility Outlook measures the degree of variance
High Above average price volatility typically demonstrated by the equity in relation to its peers
within the same A-F ratings group. The outlook's SECTOR/INDUSTRY
measurement is based on a six month forecast. Source: S&P Global
Medium Average price volatility
Investment suitability is partially dependent on your portfolio
risk tolerance. Positive or negative connotations associated
Sector Information Technology
Low Below average price volatility Industry Technology Hardware,
with the price volatility outlook score should mirror your
N/A Volatility score not available personal risk appetite. For more information, please consult Storage & Peripherals
Managing a Portfolio Using Schwab Equity Ratings.
Sub-Industry Technology Hardware,
Storage & Peripherals
RATIONALE BEHIND OUR A RATING ON AAPL
For details about inputs to Schwab Equity Rating, see "Schwab Equity Ratings IMPROVED VS. PREVIOUS WEEK
Foundations" in the "Stocks" article library under Market Insight. DECLINED VS. PREVIOUS WEEK
METRICS
Source: Refinitiv
THIS WEEK LAST WEEK AVERAGE IMPORTANCE
VALUE METRICS AAPL S&P 500
A Growth Grade Positive Positive Medium P/E last 4Q 31.0 24.1
P/E forecast EPS 28.9 27.3
B Quality Grade Positive Positive Medium
P/Free Cash Flow last 4Q 34.9 25.5
C Sentiment Grade Neutral Neutral High P/Sales last 4Q 7.71 2.54
Price/Book 47.5 13.0
C Stability Grade Neutral Neutral Low Dividend Yield(%) .5 1.8
GROWTH METRICS (%)
C Valuation Grade Neutral Neutral Medium 1 year sales growth -2.8 4.3
3 year sales growth 11.8 15.3
1 year EPS growth .5 -27.5
3 year EPS growth 23.3 17.4
PRICE & VOLUME HISTORY Data source: Refinitiv 1-year forecast EPS growth 7.2 19.4
AAPL Daily Close Prices E QUARTERLY POSITIVE/NEGATIVE --- 200-DAY Long term growth rate 3-5 years 6.1 12.5
E EARNINGS SURPRISE ANNOUNCEMENT MOVING AVERAGE
$200 1 year dividend growth 4.4 10.2
E $1.26 3 year dividend growth 5.7 11.5
MOMENTUM METRICS (%)
175 4 week stock price change 12.9 10.7
$1.46
26 week stock price change 8.3 8.4
E $1.52
FINANCIAL METRICS (%)
150 Gross margin 44.1 41.0
Net margin 25.3 11.0
Return on assets 27.5 5.1
$1.88 Next earnings announcement is expected in the week of 2/1 Return on equity 171.9 19.6
Return on invested capital 47.8 15.6
600
400
Long-term debt/capital .64 .43
200
Vol.
Dec Jan 23 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Mil

Price Performance vs. the S&P 500

40%

20%
S&P 500
0%

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AAPL A Outperform
Apple Inc NASDAQ Data as of 11/24/2023

ESG RATING ESG data source: MSCI OTHER OPINIONS

Environmental, Social and Governance (ESG) Ratings Overview CFRA RANKING SINCE 08/02/2017
ESG is a term used to describe various investing approaches that emphasize environmental, social and governance Recommendation
factors in addition to risk and return. ESG ratings try to measure a company's exposure to long-term, financially BBB ★ ★★ ★★★ ★★★★ ★★★★★
relevant ESG risks so that investors can implement the ESG investing approach they choose.
Morningstar Rating RATING SINCE 11/03/2023
MSCI ESG Rating Data as of 08/04/2023 ★ ★★ ★★★ ★★★★ ★★★★★
Laggard Average Leader Argus 12 Month Rating RATING SINCE 01/10/2006
CCC B BB BBB A AA AAA SELL HOLD BUY
Environment Social Governance RATING SINCE
Weighted Average Key Average Market Edge Second Opinion®
Average Average Average 11/20/2023
Issues Score 5.2 out of 10
4.2 out of 10 5.1 out of 10 4.4 out of 10 AVOID NEUTRAL LONG
Reuter's Average Rating RATING SINCE 11/23/2023
NO UNDER- OUT-
SELL HOLD BUY
OPINION PERFORM PERFORM
EARNINGS PER SHARE Earnings data source: Refinitiv
Fiscal Year ending Quarterly $ Annual $
in September 2023 2023 2023 2023 2024 2020 2021 2022 2023 2024E
Q1 Q2 Q3 Q4 Q1E
$3.00 $7.50 6.11 6.13 6.57 BUSINESS DESCRIPTION
2.09 5.61 Source: Reuters
$2.00 1.88 $5.00
1.52 1.46 3.28
1.26 Apple Inc. designs, manufactures and
$1.00 $2.50
markets smartphones, personal computers,
$0.00 $0.00 tablets, wearables and accessories, and sells
a variety of related services. The Company's
vs. prior year (%) -10.5 0.0 5.0 13.2 -- 10.2 71.4 8.9 0.3 -- product categories include iPhone, Mac,
Earnings Surprise(%) -- ▲ 6.0 ▲ 5.5 -- -- -- -- -- -- -- iPad, and Wearables, Home and Accessories.
# of analysts 27 26 29 28 27 37 40 39 36 38 Its software platforms include iOS, iPadOS,
Next earnings announcement is expected in the week of 2/1
macOS, watchOS and tvOS. Its services
include advertising, AppleCare, cloud
services, digital content and payment
REVENUE Revenue data source: Refinitiv services. It operates various platforms,
Quarterly $ Annual $ including the App Store, that allow customers
Fiscal Year ending
to discover and download applications and
in September 2023 2023 2023 2023 2024 2020 2021 2022 2023 2024E
Q1 Q2 Q3 Q4 Q1E digital content, such as books, music, video,
$150.0B $400B 365.82B 394.33B 383.29B 396.56B games and podcasts. It also offers digital
117.15B 117.84B
94.84B 89.50B $300B 274.52B content through subscription-based services,
$100.0B 81.80B
$200B including Apple Arcade, Apple Fitness+,
$50.0B $100B Apple Music, Apple News+ and Apple TV+.
$0.0B $B The Company's products include iPhone 15
Pro, iPhone 15, iPhone 14, iPhone 13,
vs. 1 year ago (%) -5.5 -2.5 -1.4 -0.7 -- 5.5 33.3 7.8 -2.8 -- MacBook Air, MacBook Pro, iMac, Mac mini,
Mac Studio, Mac Pro, iPad Pro, iPad Air,
ANNUAL EARNINGS FORECAST Source: Refinitiv
iPad, iPad mini, Apple Watch Series 9,
AirPods, AirPods Pro, AirPods Max and
CONSENSUS HomePod.
MEAN CHANGE IN FORECAST NUMBER OF
FORECAST LAST 30 DAYS RANGE FORECASTS
09/30/2024 $6.57 $0.02 $5.60-$7.14 38
09/30/2025 $7.17 $-0.02 $6.32-$7.86 33
Next 5 Yr. Growth Rate 6.1% -0.1% 6.1%-6.1% 1

DIVIDENDS Dividends data source: Refinitiv

Quarterly $ Annual $
$0.30 $1.00 0.90 0.94
0.23 0.23 0.23 0.24 0.24 0.80 0.85
$0.20 $0.75
$0.50
$0.10 $0.25
$0.00 $0.00
Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2020 2021 2022 2023
Dividends are paid on a Quarterly basis.

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Apple Inc
NEWS HEADLINES
4 3 2 1 $200

190

180

170

Oct 23 30 Nov 6 13 20

1 11/03/23 12:49 am ET... CFRA Maintains Buy Opinion on Shares 3 10/31/23 1:06 am ET... CFRA Maintains Buy Opinion on Shares of
of Apple Inc. (AAPL 177.57 ****) : We adjust our 12-month Apple Inc. (AAPL 170.29 ****) : At its “Scary Fast” virtual
target to $210 from $220 based on a P/E of 28.4x our CY 25 EPS event on Halloween eve, AAPL announces three new processors with
estimate of $7.39, above peers given AAPL’s installed base/financial the M3 chip family (M3, M3 Pro, M3 Max), upgraded 14- and 16-inch
position. We hold our FY 24 (Sep.) EPS at $6.56 and FY 25 at $7.20. MacBook Pro laptops, and a new iMac. The M3 line-up based on
We believe results provide ammunition for bulls and bears (see prior 3nm offers considerably faster speeds/greater unified memory (up to
note for Sep-Q color). On the negative side, AAPL offers conservative 128GB) and better graphics (e.g., ray tracing; up to 2.5x faster GPU
Dec-Q guide (flat sales Y/Y vs. +5% view) to partly reflect a rendering). While most upgrades are internal in nature, the new
shortened week vs. a year ago. AAPL also pointed to more MacBook Pro has an attractive-looking space black color option that
pronounced declines on the iPad and Wearables front to reflect the should appeal to consumers. The 14-inch MacBook Pro w/M3 starts
timing of product launches. On the positive, iPhone revenue is at $1,599 (M2 Pro version previously started at $1,999), while the
holding up while Services sees strong momentum from the App Store 16-inch version has only M3 Pro and M3 Max options. The iMac
and subscriptions. China was the biggest question and while the w/M3 starts at $1,299 and Macs expected in stores 11/7. We think
-2% was a miss, AAPL points to a 600-bp forex headwind (+4% CC) timing of the new Macs will allow AAPL’s Mac segment to return to
and remains optimistic about prospects. We stay constructive on growth in the Dec-Q (we project +6% growth; Macs about 8% of
AAPL given the improving margin profile, Services upside, and sales) after 4 straight Qs of Y/Y declines. More importantly, the chips
attractive pipeline, but investors will likely need to contend with give AAPL a strategic advantage (will be leveraged in iPads/Vision
China/regulatory unknowns.. /Angelo Zino, CFA Pro devices).. /Angelo Zino, CFA

2 11/02/23 5:21 pm ET... CFRA Maintains Buy Opinion on Shares of 4 10/16/23 12:14 am ET... CFRA Maintains Buy Opinion on Shares
Apple Inc. (AAPL 177.57 ****) : AAPL posted Sep-Q EPS of of Apple Inc. (AAPL 178.85 ****) : Our 12-month target price
$1.46 vs. $1.29, beating the $1.39 consensus. Sales fell 1%, near of $220 is based on a P/E of 29x our CY 25 EPS estimate of $7.59,
expectations, with iPhone growth of 3%, which matched our forecast. above peers given AAPL’s installed base and financial position. We
We believe the biggest negative from the results was the 2% Y/Y hold our FY 23 (Sep.) EPS estimate at $6.01 while tweaking FY 24 to
decline in China, worse than we expected, as we look for greater $6.56 from $6.61 and FY 25 to $7.20 from $7.30. Ahead of Sep-Q
clarity about AAPL’s outlook for the region in the Dec-Q, given results set to be released after the close on 11/2, we look for EPS of
concerns about increasing competitive pressures in the region. That $1.39 on revenue of $89.3B. We believe that Services (+8%
said, growth of 16% from AAPL’s higher margin Services business Jun-Q/+5% Mar-Q) will accelerate in the Sep-Q/Dec-Q (+10%),
was a bright spot (beating our 10% growth forecast), an acceleration benefiting from a higher installed base, China momentum, and
from the 8% pace in Jun-Q and 5% in Mar-Q. This supported a improving app store/gaming/digital ad growth. We forecast iPhone
wider-than-projected gross margin of 45.2% vs. 42.3% a year earlier sales will rise 2%-3% in the Sep-Q and 7% in the Dec-Q, on iPhone
(we were looking for 44.5%). We note that Macs plunged a 15 momentum, higher Pro Max pricing, and given easier comps from
worse-than-expected 34% (potentially reflecting AAPL clearing sharp declines across hardware last year (ex. iPads). Geographic
channel inventory), while iPads were down 10%. We believe the commentary, specifically in China, will be important to monitor, but
biggest question heading into the call surrounds AAPL’s China we think concerns about iPhone 15 competitive pressures/state bans
business and we will provide more clarity about our expectations are unwarranted. We see an M3 silicon chip release in CY 24 helping
after its earnings call today.. /Angelo Zino, CFA Mac sales rebound.. /Angelo Zino, CFA

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Apple Inc
IMPORTANT DISCLOSURES FOR AAPL
CR1 Schwab received compensation for products or services other than investment banking services from this company in the past 12 months.
IB2 Schwab or its affiliates has received compensation for investment banking services from this company in the past 12 months.

Regulation Analyst Certification: The views expressed in this research report accurately reflect Schwab's quantitative research model, and no part of Schwab's compensation
was, is or will be, directly or indirectly, related to the specific recommendations or views disclosed in the research report.
Note the Price Chart in the disclosures of this report which shows the rating and price history over applicable periods for this stock, including if and when coverage was
terminated or suspended.
Within the previous 12 months, the percentage of companies that have a Schwab Equity Rating and for which Schwab has provided investment banking services are as
follows:
• 3.38% in Buy Category (Schwab Equity Ratings and Schwab Equity Ratings International of A or B)
• 2.61% in Hold Category (Schwab Equity Ratings and Schwab Equity Ratings International of C)
• 1.59% in Sell Category (Schwab Equity Ratings and Schwab Equity Ratings International of D or F)
Price History for AAPL Schwab Equity Rating History for AAPL
$200
A
180
B
160
C
140
D
120

100 F
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct
21 22 23

SCHWAB EQUITY RATINGS MEANING AND DISTRIBUTION

Schwab Equity Ratings are assigned to approximately 3000 U.S.-traded stocks. The Schwab Equity Ratings model universe is generally composed of the combined set of
stocks in the Russell Investments’ (“Russell”) 3000 Index and the Standard & Poor’s (“S&P”) 500. Additional universe coverage may be incorporated from time to time. The
explanation and table below are included to assist you in using Schwab Equity Ratings as one component of your own research to evaluate stocks and investment
opportunities.
Schwab rates stocks using a scale of A/B/C/D/F. Schwab’s outlook is that "A" rated stocks, on average, will strongly outperform and "F" rated stocks, on average, will strongly
underperform the equities market over the next 12 months. Schwab Equity Ratings are based upon a disciplined, systematic approach that evaluates each stock on the basis of
a wide variety of investment criteria from five broad categories: Growth, Quality, Sentiment, Stability and Valuation. This approach attempts to gauge investor expectations
since stock prices tend to move in the same direction as changes in investor expectations. Stocks with low and potentially improving investor expectations tend to receive the
best Schwab Equity Ratings ("A" or "B" ratings), while stocks with high and potentially falling investor expectations tend to receive the worst Schwab Equity Ratings ("D" or "F"
ratings). Schwab may update the Schwab Equity Ratings methodology.

Schwab Equity Ratings Distribution

Schwab Percentile 12 Month General
Equity Rating Ranking Distribution Distribution Return Outlook Buy/Hold/Sell Guidance*
A 1 - 10 Top 10% Strongly Outperform Buy
B 11 - 30 Next 20% Outperform Buy
C 31 - 70 Next 40% Marketperform Hold
D 71 - 90 Next 20% Underperform Sell
F 91 - 100 Bottom 10% Strongly Underperform Sell

*The general buy/hold/sell guidance is relative to other rated equities only. Before considering whether to take any action, an investor should consider whether equities
generally are performing well in comparison to other asset classes and whether other equities in the same sector or category with the same or better rating may be more
appropriate.

Investment Rating Explanation

A (Strongly Outperform): If an investor is looking to add a stock to his or her portfolio, "A" rated stocks may be the best candidates for consideration.
B (Outperform): An investor looking to add a stock to his or her portfolio might also consider a "B" rated stock, though preference should be given to "A" rated stocks.
C (Marketperform): An investor would not usually consider a "C" rated stock for purchase. An investor holding a "C" rated stock in his or her portfolio should consider
continuing to hold the stock, and might monitor the stock’s ongoing performance and compare the potential benefits of owning a stock with higher ratings.
D (Underperform): An investor holding a "D" rated stock should consider whether it is appropriate to continue to hold that stock in his or her portfolio. An investor would not
usually consider a "D" rated stock for purchase.
F (Strongly Underperform): An investor holding an "F" rated stock should consider whether it is appropriate to eliminate that stock from his or her portfolio. An investor
would not usually consider an "F" rated stock for purchase.

Percentile Rankings Explanation: Each of the approximately 3,000 stocks rated in the Schwab Equity Ratings U.S. universe is given a composite score that is derived from the
research factors used in the Schwab Equity Ratings model. Once the stock’s composite score, which includes all research factor scores, is calculated, the universe of rated
stocks is divided into percentiles ranging from 1 to 100. The lowest percentile rankings represent the best Schwab Equity Rating Model scores and correspond to the best letter
grades. For example, in a universe of 1000 stocks, the top 10 stocks would receive a percentile ranking of 1 and the bottom 10 stocks would receive a percentile ranking of
100. Stocks ranked in percentile groups 1-10 are rated "A" and those in percentile groups 11-30 are rated "B", and so forth.

Model Risks
Schwab Equity Ratings uses quantitative analyses in its modeling method. Any limitations or inaccuracies in its analyses or models could affect model performance and the
results investors may achieve. Models that appear to explain prior market data can fail to predict future market events. While the data used in the models has been taken from
sources Schwab believes to be reliable; its accuracy, completeness or interpretation cannot be guaranteed. Schwab Equity Ratings may not capture subjective, qualitative
influences on return and risk such as changes in management, business and political trends, or legal and regulatory developments. Thus, it is important to conduct additional
research prior to making a trading decision.

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Apple Inc
IMPORTANT DISCLOSURES FOR AAPL
Descriptions for Non-Rated Stocks
Category Definition Description
NR Not Rated Schwab has decided not to publish a rating on this stock due to unusual or extraordinary business circumstances related to this company.
Although Schwab generally does not monitor C, D, and F rated stocks for unusual or extraordinary business circumstances, from time to
time, a rating of NR may appear on a particular stock.
NC Not Covered This stock is not currently in the Schwab Equity Ratings universe or is prohibited from coverage for regulatory or other reasons.

DISCLAIMER INFORMATION
VARYING VIEWPOINTS - The information contained in these materials reflects the Charles Schwab & Co., Inc. Schwab Equity Rating on a particular stock. Schwab, its
affiliates and/or their employees may publish or otherwise express other viewpoints or trading strategies that may conflict with the Schwab Equity Rating included in this report.
Please be aware that Schwab and/or its affiliates and the investment funds and managed accounts they manage may take positions, which may be contrary to the included
Schwab Equity Rating.

GENERAL INFORMATION - This material is for informational purposes only and is not an offer to sell or the solicitation of an offer to buy. Additionally, Schwab Equity Ratings,
Percentile Rankings, and the general guidance are not personal recommendations for any particular investor or client and do not take into account the financial, investment or
other objectives or needs of, and may not be suitable for any particular investor or client. Investors and clients should consider Schwab Equity Ratings as only a single factor in
making their investment decision while taking into account the current market environment. Schwab Equity Ratings utilize third-party data in computing a rating. While Schwab
believes such third-party information is reliable, we do not guarantee its accuracy, timeliness or completeness. The Schwab Center for Financial Research may provide
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877-284-9817.

GICS - The industry classification information contained in these materials reflects The Global Industry Classification Standard (GICS) which was developed by and is the
exclusive property of Morgan Stanley Capital International Inc. and Standard and Poor's. GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab.

¹Markit on Demand used S&P Global's data in making its calculations.

ESG - Environmental, social and governance (ESG) ratings given to publicly traded companies are currently subject to inconsistent industry definitions and standards for the
measurement and evaluation of ESG factors; therefore, such factors may differ significantly across each ESG ratings provider. As a result, it may be difficult to compare ESG
ratings.

A stock’s ESG rating may or may not significantly influence its performance. Because stocks are evaluated based on ESG factors rather than other investment criteria, the
stock’s performance may differ (either higher or lower) from its ESG rating(s), the overall market or comparable stocks that have different ESG ratings. Environmental (“E”)
factors can include climate change, pollution, waste, and how a company protects and/or conserves natural resources. Social (“S”) factors can include how a company
manages its relationships with individuals, such as its employees, shareholders, and customers as well as its community. Governance (“G”) factors can include how a company
operates, such as its leadership composition, pay and incentive structures, internal controls, and the rights of equity and debt holders. Carefully review the ESG rating
provider’s methodology and framework to learn more about how they incorporate ESG factors into their overall rating.

Copyright MSCI 2022. All Rights Reserved. Without prior written permission of MSCI, this information and any other MSCI intellectual property may only be used for your
internal use, may not be reproduced or re-disseminated in any form and may not be used to create any financial instruments or products or any indices. The information is not
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