Apple Inc.
Case Study
By:
Executive Summary:
Apple Inc. is a great computer technology company with a wide range of products that serve to every persons needs. Not only are their products great but so is their customer service as well. They are very loyal to their customers needs and are very good about honoring their warranties which are incredible deals. They are also steadily doing very well with their stocks and their net income over the past years. With their income up 364% it’s hard for them not to be successful. By taking all of these pieces of information into account I would invest in their stocks. The demand for their product is still high even in tough economic times, showing that they are a good, reliable
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Another threat that is very apparent to Apple is the very high level of competition. The major competitors with Apple are Dell, Microsoft, and Hewlett Packard.
Also another major threat is the industry itself. The technology industry is always rapidly changing, while iPods are the thing of today, they may not be the thing of tomorrow and so on.
Financial Analysis:
Financially, Apple is a booming company in the computer technology realm, and is supported by many people across the world. Since 2005 the net income has, as reported earlier in the SWOT analysis, increased by 364% to a net income of 4, 834 million dollars.
This graph shows the relation between the number of iPods sold and the stock prices for Apple. The stock prices are shown in blue while the number of iPods sold is in pink.
Historically you can see that during December each year the stocks are on the rise. From this you can interpret that Christmas plays a huge role in Apple’s stocks, showing that their product sales are always up at this time.
Recommendation:
To improve Apple as a business I would change some of their marketing strategies and the way they release new products. When they release the iPods they don’t release all of the colors at once. I would change that because when someone buys the latest and greatest iPod they want the technology but it is in a bland color. So when the different colors
Apple inc is an american multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. Its best-known hardware products are the Mac personal computers, the iPod portable media player, the iPhone smartphone, the iPad tablet computer. Apple has around 437 stories around the world and around 100,000 staff (around 200 staff per storie) apple was first started in 1976 by founder Steve Jobs, Ronald Wayne, Steve Wozniak. Apple has shareholder and the biggest shareholder have a say in what Apple do and have a say in how come in or out. Apple Is worth is around $700 billion the most expansive company in the world. Apple want to "better" great technology for is customer there main goal is to beat their main competition Samsung.
All of these elements are key factors in Apple’s Strategy. Apple has also provided competitive prices compared to other companies like Android. Apple’s products started at much higher prices and are now competitively priced based on comparable products. These key elements fit together to complete Apple’s ever changing competitive strategy. Apple has clearly been successful in adapting their strategy based on internal and external changes. Apple has been able to create strong customer loyalty and maintain ambitious leadership. Buyer power, rivalry and treat of substitutes are also key elements in Apple’s strategy. Music, internet and computers are all areas for long term development.
• 1990: In this year Apple sales reached $5.6 billion its global market share which had fallen recently due to IBM has picked back up and stabilized at 8%. The company had a strong balance sheet and was the most profitable personal computer manufacturer’s in the world.
Apple Inc. is a well-known computer manufacturer, smartphone and digital devices device maker. Company have made strong roots in the computing market since its beginning its’ all, because of its maintained quality which have been continuously
Another force, which is the threats of rivals doesn’t affect Apple much and Apple Company is not too concerned about these threats. When Apple first introduced the IPod and Iphone products, their company rose to the top of the market immediately and it made them the top leader of the mobile-electronic market.
Apple Computers is a well-established and highly profitable company that has several leading technology- and computer-based products on the market, and that retains a highly loyal consumer base in its niche personal computing market (Yahoo Finance, 2012; Hoovers, 2012). Though the company faltered for some time in its history, it has again reached the pinnacle of innovation and progress in the computing and technology industries, and its product rollouts constitute some of the most anticipated and avidly watched events each year by early adopters and investors alike (Yahoo Finance, 2012; Hoovers, 2012). Despite the recent passing of Steve Jobs, one of the company's founders and the company's CEO and public face during the company's resurgence over the past decade-and-a-half, most projections for the company are optimistic in both the short and long terms (Yahoo Finance, 2012).
Overall, Apple was a great investment because with Christmas and Black Friday there was an increasing in demand, ultimately benefiting the
Every company’s biggest challenge is competition. In analyzing the 2012 case study, it can be said that Apple’s biggest challenge is competition and new entrants to the market. Their supplier power is high, buyer power is high, and substitute goods concerns is relatively high. The case study highlighted that as Apple continued to successfully produce great products, and increased sales worldwide, competitors saw Apple as a threat and tried to copy their style. According to the case study, Apple’s biggest concerns for the company going into the third quarter in 2012, were how Google’s entry into the market for smartphones and tablets would affect the company’s sales of the iPhones and iPads. In 2011, iPad and iPhones contributed tremendously to boosting the company’s performance in 2011 and 2012. Apple’s biggest competitor with regards to mobile devices is Samsung, which managed to attain the title of the world’s largest smartphone seller in 2011 and early 2012.
Apple has a share of five percent of the market, but has had a shipment growth of 27.7 percent. In the first quarter of 2011, and overall computer (PC) shipments dropped 1.2 percent. Unlike Apple, PC’s don’t come from on single manufacture and there are wide varieties of the PC. Apple computers cost quite more than a PC with very similar specs. Apple is also very selective about where is sells its computers where as Microsoft and other companies are not (“Pumphrey”).
On the other hand, I was mainly investing on Apple stocks (AAPL) throughout this 7 week period and after the announcement of the new i-phone 5 on September 12, 2012 along with the quantitative easing 3 announcement, apple was outer performing the stock market indexes. At that time, I had number of Apple shares and the price was increasing due to the positive announcements. Moreover, Apple stock hit all time high which was $702.10 per share during September. Nonetheless, after few weeks later, I have sold all my Apple stocks because there were some minor defects on the i-phone 5 and the announcement of the new mini i-pad did not show any positive effect on the share price of Apple.
Apple Inc had sales amounting to $ 65,225 in 2010 compared to $ 108,249 in 2011 which is a 66% increase (U.S Securities and Exchange Commission, 2011). This indicates the company performed exceedingly well in terms of revenue generation. MSN (2011) provides that Apple has a five year annual growth rate of 41.16% compared to industry's growth rate of 38.38%. This indicates that the company has high performance compared to other players in the industry and that the company is achieving its strategic goal of increasing organizational revenue. The results indicate that strategies employed are effective in generating revenue and in improving performance.
From the financial perspective Apple Inc. is one of the world leaders and is classified as World’s most valuable tech company with just recently being listed on DOW (Dow Jones Industrial Average) index. In 2015 Apple has posted results of one of the highest net sales reported of $233,7 billion with the profits ranging in $52.5 billion this fiscal year. Also Apple has done one of its biggest research and development investments since the company foundation of $8,1 billion. (Apple Inc., 2015).
But Apple Inc. also has a few weaknesses compare to other electronic companies such as:
Apple is an interesting topic to talk about, between how many different successful products they have to all the new inventions they make. Apple Inc. Company interest me which is why I choose to write on this topic. Apple is a very successful and popular company and it is no wonder why so many people are buying their products. Not only do they have so many different products but they also have good quality. When customers are looking to buy a new product they look to see what is popular in the market. Apple sells so many different products, when customers look to by new products assume that Apple is a good product since they heard good things about it and it is always advertised.
Once solely regarded as a common handheld fruit, two unlikely visionaries changed the meaning of “Apple” forever. The corporate conglomerate that now manufactures and sells various electronic products such as computers, cell phones, tablets, music players, and computer accessories was once merely an idea two college dropouts had dreamt in their own garage. Apple stock currently trades at $544.45 (as of February 14th, 2014), with a net worth estimated at over $500 billion (Forbes) 4. Who started the company, how did they come about starting it, who were the main