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Apple's Market Capitalization Essay

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Market capitalization is a popular metric for assessing the size of a company as a representation of the investing public's notion of the company's worth. The figure is derived by simply multiplying the number of outstanding shares of the company's stock by the share price. (Slivka, 2010)
3.3 The learning Curve

Access to distribution channels complements Apple’s strategy. Unlike most competitors, Apple appears just now to be seeking a strong presence abroad. The U. S. A. accounts for 48% of its revenue while Europe contributes only 21% and Asia less than 10%. While a mass marketer, Apple keeps the appeal of a luxury good. Innovation in marketing and the produces differentiation of Apple from its competitors has kept Apple at …show more content…

Sales of music was declining and Apple’s strategy of reselling music rather that licensing content allows the record companies to gain revenue and Apple has a source for the music necessary to make its iPod sales flourish. Also negations with the major television studios for supplier agreements between Apple and the studios allows Apple to let customers rent movies after 30 days after the DVD has been released. These agreements allow Apple to have the same complement as iTunes with Apple TV.
3.4.3 Threat of substitute products

Microsoft’s Windows operating system had been flawed since its inception. Touted to be a universal operating system that would work on all computers, it was supposed to allow computer purchasers to use the same software on various brands of computers. It has worked that way but is subject to crashing at any given time for no apparent reason. Apple’s operating system has none of those flaws and users taunt PC users regularly. Apple has even used these taunts in advertising with its “I am a Mac” and “I am a PC” series of ads. Product differentiation is the purpose but loyal Mac users would not substitute a PC for a Mac, believing the Mac to be unique.
3.4.4 Rivalry among competing firms

Due to Apple’s wide platform of products there is a threat of substitute products from an assortment of firms. In the product line of iPods, Apple makes a variety of units. The market share for this portable personal music player was greatly

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