CARLICAHNISSUESOPENLETTERTO

TIMCOOK
May18,2015
by
CarlIcahn
FORIMMEDIATERELEASE

Contact
:
IcahnCapitalLP
SusanGordon
(212)7024309

CARLICAHNISSUESOPENLETTERTO
TIMCOOK,CHIEFEXECUTIVEOFFICEROFAPPLE

NewYork,NewYork,May18,2015TodayCarlIcahnreleasedtheattachedopenlettertoTim
Cook,theChiefExecutiveOfficerofAppleInc.

Formoreinformationonthisandothertopics,followCarlIcahnonTwitterat:
@Carl_C_Icahn
https://twitter.com/Carl_C_Icahn

ALLRECIPIENTSAREADVISEDTOREAD

IMPORTANTDISCLOSUREINFORMATION

ATTHEENDOFTHEATTACHEDLETTER


CarlC.Icahn
767FifthAvenue,47
th
Floor
NewYork,NewYork10153

May18,2015

DearTim:
WeagainapplaudyouandtherestofmanagementforApplesimpressiveoperational
performanceandgrowth.Itistrulyimpressivethat,despitesevereforeignexchangeheadwinds
andmassivegrowthininvestment(inbothR&DandSG&A),thecompanywillstillgrow
earningsby40%thisyear,accordingtoourforecast.AfterreflectinguponApplestremendous
success,wenowbelieveApplesharesareworth$240today.Appleispoisedtoenterandinour
viewdominatetwonewcategories(thetelevisionnextyearandtheautomobileby2020)witha
combinedaddressablemarketof$2.2trillion,aviewinvestorsdontappeartofactorintotheir
valuationatall.Webelievethismayleadtoadefactoshortsqueeze,asunderweightactively
managedmutualfundsandhedgefundscorrecttheirmisguidedpositions.Toarriveatthevalue
of$240pershare,weforecastFY2016EPSof$12.00(excludingnetinterestincome),applya
P/Emultipleof18x,andthenadd$24.44ofnetcashpershare.Consideringourforecastfor30%
EPSgrowthinFY2017andourbeliefApplewillsoonentertwonewmarkets(Televisionand
theAutomobile)withacombinedaddressablemarketsizeof$2.2trillion,wethinkamultipleof
18xisaveryconservativepremiumtothatoftheoverallmarket.Consideringthemassivescope
ofitsgrowthopportunitiesandtrackrecordofdominatingnewcategories,weactuallythink18x
willultimatelyprovetobetooconservative,especiallysinceweviewthemarketingeneralas
havingmuchlowergrowthprospects.
WearepleasedthatApplehasdirectionallyfollowedouradviceandrepurchased$80billionof
itsshares(yieldingthecompanysshareholdersanexcellentreturn),butthecompanys

enormousnetcashpositioncontinuestogrowwhilethecompanyssharesarestilldramatically
undervalued.WithApplessharestradingforjust$128.77pershareversusourvaluationof$240
pershare,nowisthetimeforamuchlargerbuyback.WeappreciatethattheBoardjust
increasedthesharerepurchaseauthorizationby$50billion,andthatitcontinuestoprioritize
sharerepurchasesoverdividends(asitshould).Weagainsimplyaskyoutohelpusconvincethe
boardofhowthesetwounderlyingissues(inefficientnetcashgrowthandshareundervaluation)
persistandcombinetoenhancetheopportunityforacceleratedsharerepurchasesingreater
magnitude.Wealsoaskyoutohelpusconvincetheboardthatthisisnotachoicebetween
investingingrowthandsharerepurchases.Asourmodelforecasts,despitemorethan30%
growthinR&DannuallythroughFY2017to$13.5billion(upfrom$1.8billioninFY2010)and
yourupdatedcapitalreturnprogram,Applesnetcashposition(currentlythelargestofany
companyinhistory)willcontinuetobuildonthebalancesheet.
Itisourbeliefthatlargeinstitutionalinvestors,WallStreetanalystsandthenewsmediaalike
continuetomisunderstandAppleandgenerallyfailtovalueApplesnetcashseparatelyfromits
business,failtoadjustearningstoreflectApplesrealcashtaxrate,failtorecognizethegrowth
prospectsofAppleenteringnewcategories,andfailtorecognizethatApplewillmaintain
pricingandmargins,despitesignificantevidencetothecontrary.Collectively,thesefailures
havecausedApplesearningsmultipletostayirrationallydiscounted,inourview.
WhenwecompareApplesP/EratiotothatoftheS&P500index,wefindthatthemarket
continuestovalueAppleatasignificantlydiscountedmultipleofonly10.9x,comparedto17.4x
fortheS&P500,awardingtheS&P500witha60%premiumvaluationtoApple:

Importantly,aswehavenotedpreviously,weassumea20%taxrateforthepurposeof
forecastingApplesrealcashearnings,notthe26.2%effectivetaxrateusedbyApple,and

viewthisasanecessaryadjustment,oftenoverlookedbybothanalystsandinvestors.Formore
detailonourmethodologyforthisadjustment,pleasereviewourlettertitledCarlIcahnIssues
LettertoTwitterFollowersRegardingApplepublishedFebruary11
th
,2015,whichyoucanfind
here:
http://www.shareholderssquaretable.com/lettertotwitterfollowersregardingapple/
ByapplyingthisadjustmenttothecurrentconsensusFY2015EPSof$8.96(amongthe45
analystswhohaveupdatedtheirEPStargetssinceApril22
nd
),theadjustedresultis$9.71.
Notably,whilepreviouslycriticizedbysomeoftheseanalystsasbeingtooaggressive,this
consensusEPSforecast,whichincludesinterestincome,isnowlargelyinlinewithourown
forecastof$9.60,whichdoesnotincludeinterestincome.And,onceagain,weexcludeinterest
incomefromourEPSforecastbecausewevalueApplesenormousnetcashbalanceseparately
fromtheenterprise,unlikemostanalysts.
WhileourforecastforFY2016EPSissignificantlyaboveWallStreetconsensustoday,in
October2014sowasouroriginalforecastforFY2015EPS,whichisnowinlinewiththeWall
Streetconsensus.Weareoptimisticthatecosystemimprovements(AppleWatch,ApplePay,
HomekitandHealthkitinparticular)willdrivemodestgrowthiniPhonerevenuesnextyear,
despitethedifficultcomparisonthatwillresultfromiPhonestremendousperformancethisyear.
WithanewiPhoneexpectedinSeptember2016,ApplestandstobenefitasiPhonecontinuesto
takepremiummarketshare(switchersfromcompetitors),asthemiddleclasscontinuestogrow
inemergingmarkets,andasthemodestlevelofupgrades(only20%todate)indicatespulling
demandforwardfromFY2016toFY2015maynotbeassevereassomehavehighlighted.
AlongwithamoredramaticpushintotheTVmarket,increasingtractionwithAppleWatch,and
theintroductionofalargerscreeniPad,wehaveconfidenceinourforecastforFY2016.
WebelieveAppleWatch,ApplePay,Homekit,Healthkit,BeatsMusic,andfurtherinnovationin
existingproductlinescollectivelyrepresentatremendousopportunitythatontheirownjustifya
valuationthat,attheveryleast,reflectsamarketmultiple.Thatbeingsaid,weshareyour
excitementthatourbestdaysareaheadofusandthatApplehasnoshortageofgrowth
opportunitiestopursue.ThecompanysdramaticincreaseinR&Dspendingshouldsignalto

investorsthatAppleplanstoaggressivelypursuethesegrowthopportunities.Itmaybedifficult
forsometofathom(onlybecauseAppleisalreadythelargestcompanyintheworld),butApple
isverymuchalongtermgrowthstoryfromourperspective,whichisexactlywhywebelievethe
companyssharesshouldtradeatapremiummultipletotheS&P500,asopposedtotheS&P
500tradingata60%premiumtoApple.WhilewerespectandadmireApplespredilectionfor
secrecy,thecompanysaggressiveincreasesinR&Dspending(andsomeofthemore
wellsupportedrumors)havebolsteredourconfidencethatApplewillentertwonewproduct
categories:televisionandcars.Combined,thesetwonewmarketsrepresent$2.2trillion,three
timesthesizeofApplesexistingmarkets(ifweexcludeAppleWatch).
Excludingadvertising,theaddressablemarketfortelevisionisapproximately$575billion,
whichislargerthanthesmartphonemarket.Also,giventhatpeoplespendanaverageof12%of
thedaywatchingTV(equatingto25%oftheirfreetime),weviewtelevisionsroleintheliving
roomasastrategicallycompellingboltontotheAppleecosystem.InadditiontoanUltraHigh
Definitiontelevisionset,weexpectAppletolauncharelatedsuiteoftieredproductsand
services,includingaskinnybundleofpaytvchannels(partneredwithvariousmedia
companies)andanupdatedAppleTVmicroconsole(whichwillcontinuetoservicethemassive
installbaseoftelevisionsofferedbyotherOEMs).ThiswillenableAppletopursuetheentire
marketbyofferingmultipleproductsatvariouspricepointsacrossthedemographicspectrum.
Netflixoffersasimilartieredapproachtopricingtodaybychargingahigherpriceforthose
seekingtheabilitytoreceiveultrahighdefinitioncontent.
WebelievethismoveintoTVwillalsobenefitalltheotherdevicesandservicesintheApple
ecosystem.Asjustoneofmanypossibleexamplesofthis,theAppleWatchcouldperhapsbe
usedasaremotecontrol.Similarly,asweexpectAppletolaunchalarger12.9iPad,itwould
offeranenhancedviewingexperienceforanApplepaytvservice,oractanimprovedsecond
screentoanAppleUltraHDtelevision.
At$1.6trillion,theenormousaddressablemarketfornewcarsisapproximatelyfourtimesthe
sizeofthesmartphonemarket.Itsestimatedthatpeoplespendanaverageof1houreveryday

traveling,mostlyincars,butnoteveryonedrives,implyingthattheaveragetimethatdaily
commutersspendinacarismuchhigher.WebelievetherumorsthatApplewillintroducean
Applebrandedcarby2020,andwebelieveitisnocoincidencethatmanybelievevisibilityon
autonomousdrivingwillgainmaterialtractionbythen.
Asautonomousdrivingwouldreleasedriversattentionfromtheactivityofdrivingand
navigating,andperhapsevenincreasethetimepeopleactuallywanttospendinsideacar,both
anautomobileandtheservicesprovidedthereinbecomeevenmorestrategicallycompelling.
WhileApplecurrentlyaddressesthismarketwithCarPlay,itseemslogicalthatApplewould
viewthecaritselfasatheultimatemobiledevicetowhichitcouldbringitspeerlesstrackrecord
ofmarryingsuperiorindustrialdesignwithsoftwareandservices,alongwithitsglobally
admiredbrand,andofferconsumersanoverallautomobileexperiencethatnotonlychangesthe
worldbutalsoaddsarobustverticaltotheAppleecosystem.AndforApple,thecarmarketis
morethanbigenoughtomovetheneedlesignificantly,evenastheworldslargestcompany.
Therisingcostofoil,itsimpactonglobalwarming,thegeopoliticalrisksassociatedwithoil
dependency(especiallyasfuelforautomobiles),followedmorerecentlybytheriseofcost
effectivealternativespresentsachangetheworldopportunityforApple.Itiswidelybelieved
thattheelectricbatterywillplayakeyroleinthistransition.Thelithiumionbatteryalready
representsacriticalcomponentacrossmanyofApplesexistingproducts(iPhone,iPad,Apple
Watch,MacBook,Beats)andanyfurtherinnovationcouldbeagamechangerintermsofboth
batterylifeandformfactoracrossApplesentireecosystem.Sincelithiumionbatteries
representalargepercentageofthecostoftodayselectricvehicle,webelieveAppleshouldbe
wellpositionedtoleverageitsexistingknowledgedomainandmorerobustR&Dspendingin
thisarea,andinturnapplyanyenergydensity/batterylifeimprovementsforacaracrossallthe
otherproductsinitsecosystemthatwillsharethebenefitfromsuchbatteryinnovation(iPhone,
iPad,AppleWatch,MacBook,Beats).

Asamobiledevicethatisdifferentiatedbydesign,brand,andconsumerexperiencewhere
softwareandservicesareincreasinglycritical,anApplecarwouldseemtobeuniquely
positioned.
Whilethetelevisionandthecaroffertremendousgrowthopportunities,Applescoreecosystem
continuestoimproveandgrow,nowsometimesreferredtoasamegaecosystem,atermwe
findincreasinglyappropriate,aswelookatthebreadthofitscomponents,whichnowinclude
existingproducts(iPhone,AppleWatch,Mac,iPad,Beats,AppleTV),software/services(Apple
Pay,Homekit,Healthkit,Carplay,iCloud,iTunes,andrumoredBeatsMusic,payTVservice),as
wellaspossiblenewproductsinnewcategories(aCar,aTVset).Furthermore,ongoing
innovationsandenhancementstoalloftheabovewilldriveevenmorepremiummarketshare
gainsforiPhone,whichsitsattheepicenterofthismegaecosystem.
Applehasclearlydemonstratedatrackrecordofexcellenceandsuccesswhenenteringnew
categories.WeexpectthistocontinuewiththeAppleWatch,thetelevision,andthecar,andthe
worldwilllookbackontodaysundervaluationasafascinatingexampleofmarketinefficiency
(andlikewiseonourvaluationat18xearningspershareasconservative).Becauseofthis,we
encouragebothacceleratedandlargermagnitudesharerepurchasesasyouconsiderhowto
allocatecapitalgoingforward.Asyoucontinuetoevaluatethisopportunity,andconsiderthe
rightpricesatwhichtoopportunisticallyrepurchaseshares,wehopeyougivecredencetoour
adviceinlightofourinvestmentrecord.Unlikethemanyactivelymanagedmutualfundsand
hedgefundsthatareunderweightAppleandhaveunderperformedtheS&P500,wehave
exhibitedstrongoutperformance,thanksinparttoourlargepositioninApple.TheSargon
Portfolio(adesignatedportfolioofassetscomanagedbyBrettIcahnandDavidSchechter
withintheprivateinvestmentfundscomprisingIcahnEnterprisesInvestmentsegmentandHigh
RiverLimitedPartnership,subjecttothesupervisionandcontrolofCarlIcahn)hasgenerated
annualizedgrossreturnsof36.9%sinceitsformationonApril1,2010throughApril30,2015
with$8billionofassetsundermanagementasofApril30,2015.

Ifyouchoosenottopursuesomeofthenewcategorieswehighlighted,oryoufindourgrowth
forecaststooaggressiveforanyonenewcategoryinparticular,wellbethefirsttoadmitthat
youaremoreknowledgeableintheseareasthanweare.Butwebelieve,thatunderany
circumstances,youwouldagreethatintheaggregate,allthesenewcategoriestakentogether
(alongwiththoseofwhichwemaybeunaware)representoneofthegreatestgrowthstoriesin
corporatehistory,aswellasoneofthegreatestopportunitieseverforacompanytoinvestin
itselfbyrepurchasingitsshares.

Sincerely,
CarlC.Icahn
BrettIcahn
DavidSchechter

KeyAssumptions
iPhoneafterourestimateof43%revenuegrowthinFY2015,weforecastmodest
revenuegrowthinFY2016ofjust2.3%,followedbymoderaterevenuegrowthof6.7%
inFY2017,alldrivenbyvolumegrowthamidstflataveragesellingpricesoverthethree
yearperiodpacedbyswitchers,newmiddleclassusers,ecosystemstrength,and
innovation
iPadafterdisappointingrevenuegrowthofnegative21.5%inFY2015as
cannibalizationfromthelargerscreeniPhoneandcustomersutilizingexistingolder
modelsforlongerthanweexpectedimpactedresults,weforecastAppleisatan
inflectionpointandexpecttheintroductionofanewlargerscreeniPadinconjunction
withitspushintotelevision,penetrationintotheenterprise,maturationofthe
replacementcycle,newmiddleclassusers,ecosystemstrength,andinnovationtodrive
strongperformancewithrevenuegrowthof27.7%inFY2016and14.2%inFY2017.
MacinadecliningPCindustry,weexpectMactocontinueitsmarketsharegainand
supportourforecastforitsstrongperformanceof7.3%revenuegrowthinFY2015,
followedby3.6%inFY2016,and4.6%inFY2017onflataveragesellingpricesover
thethreeyearperiodof$1,230.
AppleWatchaftertherecentreleaseinthe2
nd
halfofFY2015,weexpecttheApple
Watchtogaintractionandbeasuccessinthemarketleadingourforecastsof10million
unitsduringthe2
nd
halfofFY2015at$600averagesellingpricesincludingtheextra

bandsmanyconsumerswillorder.ThroughoutFY2016weexpecttheAppleWatchto
gainfurthertractionandasecondgenerationAppleWatchtobereleasedsometimein2
nd
halfofFY2016.WeexpectimprovementsinboththenumberandqualityofAppsalong
withaddingsensorsandfunctionalityinlatergenerationsoftheAppleWatchtoevolve
theAppleWatchintoamusthaveaccessoryovertimeforiPhoneowners.Weforecast
revenuesof$6billioninFY2015,$22.5billioninFY2016,and$45billioninFY2017.
AppleTelevisionSetaftermanyyearsofrumorsaspartofApplespushintotelevision
andaswereferencedpreviously,weexpectinFY2016Applewillsell55and65ultra
highdefinitiontelevisionsets.Weforecastrevenuesof$15billioninFY2016and$37.5
billioninFY2017on10millionand25millionunitsrespectivelywithaverageselling
pricesof$1,500.
iTunes,Software,&ServicesaspartofApplesmoveintotelevision,weexpectthe
introductionofaskinnybundleofpaytvchannels(partneredwithvariousmedia
companies)andvideocontentsoldthroughiTunes,alongwithaBeatsMusic
subscriptionserviceandAppStoresalesgiveuscomfortinourforecastsofgrowthover
thenextthreeyearsof6%inFY2015,10%inFY2016,and15%inFY2017.Notto
mentionHomeKitandHealthKitwhichfornowweexpecttonotbemonetizedbut
simplyenhancetheoverallecosystem.
AccessoriesandiPodaspartofApplesmoveintotelevision,weexpectthe
introductionofanupdatedAppleTVmicroconsole(whichwillcontinuetoservicethe
massiveinstallbaseoftelevisionsofferedbyotherOEMs),alongwithimprovementsto
BeatsheadphonestodrivegrowthfarinexcessofthedeclineiniPodwhichatour
forecast$1.1billionofrevenuesinFY2015islargelyirrelevanttoApplefinancially
ApplePayafteraninsignificantfinancialcontributioninFY2015weexpectApplePay
togainacceptanceatmoreretailersandforAppletoexpandtheserviceinternationally.
Ourforecastsforrevenues(alsoequivalenttogrossmarginsasthevariablecostsarede
minimis)are$263millioninFY2015,$1.2billioninFY2016,and$3.3billioninFY
2017.
GrossMarginsweforecastflatgrossmarginsof40.0%fromFY2015throughFY
2017.
ResearchandDevelopmentR&DweforecastrobustgrowthinR&DasAppleramps
itsinvestmentsininnovationatabreathtakingpacewithgrowthof32.4%,30%,and
30%overthenextthreeyearsto$13.5billioninFY2017(upfrom$1.8billionspentin
FY2010).
Selling,General,&AdministrativeSG&AweforecastheavyinvestmentinSG&A,
asitrisesby19%,13.5%,and10%overthenextthreefiscalyearsto$17.8billioninFY
2017.

 InterestIncomewithregardstointerestincome,sincewevaluethenetcashseparately
fromthebusiness,weassumenointerestincomefromApplesnetcashof$149.7billion
onMarch28,2015.
EffectiveTaxRateimportantlyforthecompanysincometaxrate,weconsider20%a
moreappropriatetaxrateforthepurposesofforecastingrealearnings,notthe26%
effectivetaxrateAppleusesintheirincomestatement.MostcompaniesintheS&P500
statethattheyplantopermanentlyreinvesttheirinternationalearningsandthereforedo
nothavetoaccrueforanincometaxonunremittedearningsandthusshowalowertax
rate.Googleisagoodexampleofthis,asitseffectivetaxrateis20%.Apple,unlike
GoogleandmostcompaniesintheS&P500haschosentoaccrueincometaxesonsome
ofitsunremittedinternationalearningsandaccordinghasaneffectivetaxrateof26%.
Therefore,whenassessingthemultipleofearningsatwhichAppleshouldtrade,we
believeitisappropriatetousea20%taxrateforAppleinordertomakesuch
comparisonsApplestoApples,nopunintended.
ShareRepurchasesweassumesharerepurchasesof$37.5billion,$31.25billion,and
$37.5billionoverthenextthreeyearforourforecastandnotthemoreaggressivepace
wehopetheBoardwillundertake
CashFlowforsimplicitypurposes,weassumenetincomeequalscashflowotherthan
dividendsandsharerepurchases
Valuationwithregardstovaluationofthecompanyat$240pershare,thisincludes
valuingthebusinessat$216pershare(at18xourFY2016earningsestimateof$12per
share)plusnetcashpershareof$24($150billionofnetcashlessthetaxeffecton
internationalcashforrepatriation,whichweestimatetoultimatelybe6%,andfor
simplicitypurposes,applytoallcashonbalancesheetratherthanjusttheinternational
cash).

ImportantDisclosureInformation

SPECIALNOTEREGARDINGTHISLETTER

THISLETTERCONTAINSOURCURRENTVIEWSONTHEVALUEOFAPPLE
SECURITIESANDACTIONTHATAPPLESBOARDMAYTAKETOENHANCETHE
VALUEOFITSSECURITIES.OURVIEWSAREBASEDONOURANALYSISOF
PUBLICLYAVAILABLEINFORMATIONANDASSUMPTIONSWEBELIEVETOBE
REASONABLE.THERECANBENOASSURANCETHATTHEINFORMATIONWE
CONSIDEREDISACCURATEORCOMPLETE,NORCANTHEREBEANYASSURANCE
THATOURASSUMPTIONSARECORRECT.APPLESACTUALPERFORMANCEAND
RESULTSMAYDIFFERMATERIALLYFROMOURASSUMPTIONSANDANALYSIS.
WEHAVENOTSOUGHT,NORHAVEWERECEIVED,PERMISSIONFROMANY
THIRDPARTYTOINCLUDETHEIRINFORMATIONINTHISLETTER.ANYSUCH
INFORMATIONSHOULDNOTBEVIEWEDASINDICATINGTHESUPPORTOFSUCH
THIRDPARTYFORTHEVIEWSEXPRESSEDHEREIN.WEDONOTRECOMMENDOR
ADVISE,NORDOWEINTENDTORECOMMENDORADVISE,ANYPERSONTO
PURCHASEORSELLSECURITIESANDNOONESHOULDRELYONTHISLETTEROR
ANYASPECTOFTHISLETTERTOPURCHASEORSELLSECURITIESORCONSIDER
PURCHASINGORSELLINGSECURITIES.ALTHOUGHWESTATEINTHISLETTER
WHATWEBELIEVESHOULDBETHEVALUEOFAPPLESSECURITIES,THIS
LETTERDOESNOTPURPORTTOBE,NORSHOULDITBEREAD,ASAN
EXPRESSIONOFANYOPINIONORPREDICTIONASTOTHEPRICEATWHICH
APPLESSECURITIESMAYTRADEATANYTIME.ASNOTED,THISLETTER
EXPRESSESOURCURRENTVIEWSONAPPLE.ITALSODISCLOSESOURCURRENT
HOLDINGSOFAPPLESECURITIES.OURVIEWSANDOURHOLDINGSCOULD
CHANGEATANYTIME.WEMAYSELLANYORALLOFOURHOLDINGSOR
INCREASEOURHOLDINGSBYPURCHASINGADDITIONALSECURITIES.WEMAY
TAKEANYOFTHESEOROTHERACTIONSREGARDINGAPPLEWITHOUT
UPDATINGTHISLETTERORPROVIDINGANYNOTICEWHATSOEVEROFANY
SUCHCHANGES,EXEPTASNOTEDWITHRESPECTTOTHEAPPLETENDEROFFER

WEAREASKINGTHEAPPLEBOARDTOAUTHORIZE.INVESTORSSHOULDMAKE
THEIROWNDECISIONSREGARDINGAPPLEANDITSPROSPECTSWITHOUT
RELYINGON,OREVENCONSIDERING,ANYOFTHEINFORMATIONCONTAINEDIN
THISLETTER.

FORWARDLOOKINGSTATEMENTS

Certainstatementscontainedinthisletterareforwardlookingstatementsincluding,butnot
limitedto,statementsthatarepredicationsoforindicatefutureevents,trends,plansor
objectives.Unduerelianceshouldnotbeplacedonsuchstatementsbecause,bytheirnature,they
aresubjecttoknownandunknownrisksanduncertainties.Forwardlookingstatementsarenot
guaranteesoffutureperformanceoractivitiesandaresubjecttomanyrisksanduncertainties.
Duetosuchrisksanduncertainties,actualeventsorresultsoractualperformancemaydiffer
materiallyfromthosereflectedorcontemplatedinsuchforwardlookingstatements.
Forwardlookingstatementscanbeidentifiedbytheuseofthefuturetenseorother
forwardlookingwordssuchasbelieve,expect,anticipate,intend,plan,estimate,
should,may,will,objective,projection,forecast,managementbelieves,
continue,strategy,positionorthenegativeofthosetermsorothervariationsofthemorby
comparableterminology.
Importantfactorsthatcouldcauseactualresultstodiffermateriallyfromtheexpectationsset
forthinthisletterinclude,amongotherthings,thefactorsidentifiedunderthesectionentitled
RiskFactorsinApplesAnnualReportonForm10KfortheyearendedSeptember27,2014.
Suchforwardlookingstatementsshouldthereforebeconstruedinlightofsuchfactors,and
Icahnisundernoobligation,andexpresslydisclaimsanyintentionorobligation,toupdateor
reviseanyforwardlookingstatements,whetherasaresultofnewinformation,futureeventsor
otherwise,exceptasrequiredbylaw.