Introduction and Background The UK technology market is very profitable and ever evolving, out of which Apple has taken one of the largest shares of the market. The UK technology market is an ever-growing industry with a constant need for expansion due to the high levels of demand for technological products. As of mid 2013, the total value of the UK technology market was estimated to be approximately £81 billion. Apple is an important segment within the UK technological market. Apple owns one of the largest percentages of shares in this market at 42.5%. Its market share had increased by 40% over the year, not only in the UK, but also across the other remaining four of the largest markets in Europe being Germany, France, Italy and Spain. Apple substantially achieved a percentage of 20.7% smartphone market share within those markets, with the highest gains being in the UK. This is where Apple had reached 39.5% of all sales, the highest level that has ever been assigned to Apple in the UK according to a market research division in the UK, Kantar. This also resulted in an increase of 35.7% of shares over the year ago quarter. In the last quarter of 2013, Apple has managed to sell 14.1 million ipads, 33.8 million iphones and approximately 4.6 million macs. All these new gadgets helped Apple to generate an enormous amount of $37.5 billion in revenue resulting in a huge profit of $7.5 billion. The full year results for Apple showed that they secured overall revenue of $171
Revenue concentration in High growth industries: Apple’s major revenue is from its sale of Iphone and Ipad, where they gain about 80% revenue, even though their market presence is lower compared to others they still have a higher growth.
Smartphone and tablet markets are growing which is a good opportunity for Apple to expand their market share in these markets.
For the fiscal year (FY) 2013 fourth quarter (Q4) Apple posted revenue of 37.5 billion and quarterly profits of 7.52 billion. Figure 1 shows financial data for three consecutive years from 2011-2013. See Appendix Figure 1 for financial details. Net sales for FY 2013 were $170,910 million an increase of $14,402 million from FY 2012 (Apple reports, 2013). Apple sold 33.8 million iPhones, 14.1 million iPads, and 4.9 million Macs during 2013 Q4. Apples App Stores’ sales exceeded $10 billion for FY 2013. App Store customers downloaded almost three billion apps in December 2013 making it the most successful month in App Store history (App store sales, 2013).
- April 19, 2006: Apple Computer, Inc. announced that it expected its third quarter revenues to be around $4.2-$4.4 billion, GAAP earnings of $.39-$.43 per share, translating to non-GAAP earnings of $.43-$.47 per share. Analysts expect non-GAAP earnings of $0.47 per share on revenues of $4.72 billion in the same period.
For 52 weeks Ending 2001-09-29, Apple had $5,363 million in revenues, gross profit of $1,235 million, and a NEGATIVE operating income of $344 million. It incurred a loss of $52 million before tax, and Income After Tax was NEGATIVE $37 million. Apple improved its position in the next year, having revenues of $5,742 million, gross profit of $1,603 million, and a positive income of $17 million. Apple 's income after tax for the fiscal year was $65 million. For Fiscal Year ending 2003-09-27, Apple increased its Total revenue and expenses. Apple 's total revenues stood at $6,207 million, negative total expenses of $6,208 million. Apple 's income after tax stood at $68 million, and a net income of
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.
Further, in 2012 net income increased to $41,733,000,000. This shows that while the industry was declining, Apple was able to stay strong and profitable.
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).
sales for the past few years. Furthermore the financial analysis showed that a big part of the net sales is generated by complementary products which can be connected to the sales of Macs, iPhones and iPods.
Apple had nearly $137 billion of cash at the end of Dec 2012. Over the past few years, the Company had been highly successful with the launch of the iPhone 3G in 2008, and which was followed by the launch of iPad in 2010. The Company enjoyed high profitability, and was able to keep its costs at a minimum. The gross margin on the iPhone was between 49% and 58% from October 2010 to March 2012, and the gross margin on the iPad was between 23% and 32% in the same time period. Apple’s capital structure included no debt; hence, there was no outflow of cash for making interest payments.
CUPERTINO, California—April 20, 2010—Apple® today announced financial results for its fiscal 2010 second quarter ended March 27, 2010. The Company posted revenue of $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share. These results compare to revenue of $9.08 billion and net quarterly profit of $1.62 billion, or $1.79 per diluted share, in the year-ago quarter. Gross margin was 41.7 percent, up from 39.9 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter’s revenue.
Apple's positioning is slightly different. It is certainly not the cheapest computer system on the market: one of the reasons that PCs still dominate the market in terms of units sold is because of Apple's greater expense. "Apple's share of the PC market has been below 5 percent for most of the past 15 years, and even with the much-hyped 'iPod halo effect,' this level hasn't changed in recent years" (Paczkowski 2010). While Apple has been able to outsell rivals in some areas, such as music, even in arenas in which it is famous such as the smartphone market, Apple is not the undisputed rival. "Samsung and Apple are persisting in their tug-of-war to lay claim as the world's top smartphone vendor" (Foresman 2012).
According to the annual list of 500 major leading companies has ranked by Fortune 500 Apple lies 5th in its list. Apple is amongst the most valuable and highly money-making companies in the world with its revolutionary iPhone. It is able to gain remarkable success by the ability to create innovative products. Certainly, it is able to gain such huge success due to its products but not only that, there are other factors that plays role such as distinct leading faces of Steve Job and currently Tim Cook along with different strategies applied to motivate its employees and make the company what it is today.
On the other hand Apple has reported who has reported for the same quarter a net Operation cash of 37.53 billion, an investing cash of negative 40.42 billion, and a Financing cash of negative 1.43 billion. Apple is up 30.37% over the last year return
Apple Inc. is the most revered corporation of the USA, both in terms of brand equity and market capitalization. The company’s international competitive strategy is focused on the innovative product development, which Apple controls through its eight business segments: Portables, Desktops, iPads, iPhones, Music related products and services, peripherals and hardware (Lam et al. 2005).