From: Tazia Smith •tt > To: "jeffrey epstein" <jeevacation®gmail.com> Subject: Date: Tue, 29 Oct 2013 11:24:22 +0000 Importance: Normal Attachments: Disclaimertzt Classification: Public Good Morning Jeffrey - As you likely saw, AAPL recouped immediate losses in the aftermarket yday (trading back up to —527) after mgmt comments on the conference call suggesting that lower gross margins were a result of deferrals. Will watch for any follow-through (the sell side has been broadly positive in response to earnings) and opportunity to sell OTM calls today. Fyi only, DB's summary of AAPL's earnings report and commentary below (reit 575 tgt). Tazia Source: bloomberg, streetaccount.com, db global markets research, 10/28/13 Tazia Smith Director Markets Coverage Group Deutsche Bank Securities, Inc. Deutsche Asset & Wealth Management 345 Park Avenue - 26th Floor New York, NY 10154 E-mail: From: EVS EquityFocus Sent: 10/29/2013 10:01 AM GDT Subject: DB: AAPL.OQ - Chris Whitmore Classification: Public Apple Inc (Buy, CP: $529.38, TP: $575.00, AAPL.OQ, Chris Whitmore) Product cycles kicking Into gear AAPL reported revs of $37.58 and EPS of $8.26 which beat expectation (vs. DB at $36.98/$8.02; Street at $36.8B/$7.93). Apple beat on iPhone units (33.8M vs. DB at 32.5M) and iPads (14.1M vs. DB at 12M) and Mac results were light (4.6M vs. DB at 4.8M). iPhone mix and operating leverage translated into OM (26.8% vs. DB at 26.1%) and EPS upside. AAPL will defer -$900M in the Dec Q related to SW deferrals which impacts cash EPS but not cash flow. Consequently, we trim EPS est's but at -8x CY14 EV/FCF we believe AAPL represents an attractive value; maintain Buy and $575 PT. Margin guidance was solid after adjusting for software deferrals Apple guided Dec Q revs to $55-588 which beat expectation (vs. Street at $55.58). GM's guidance of 36.5-37.5% includes $900M of incremental software deferrals Q/Q related to including Mavericks, iLife and Work for free. We