Apple Inc.’s Financial Analysis case study will cover the nine-step assessment process to evaluate the company’s future financial health. The nine-step evaluation process will entail the following: 1) Fundamental analysis covers objectives, plan of action, market, competing technology, and governing and operational traits, 2) Fundamental analysis-revenue direction, 3) Investments to support the firm’s entities action plan, 4) Forthcoming profit and competitive accomplishment, 5) Forthcoming external financial requirements, 6) Accessibility to direct at sources of external finance, 7) Sustainability of the 3-5 year plan, 8) Strain examination beneath scenarios of calamity, and 9) Present financial plan (State University, 2013). The fundamental analysis will be explained primarily in the next section. Fundamental Analysis Apple Inc.’s fundamental analysis includes objective, plan of action, market, and competing technology, and its governmental and operational traits which will be discussed in this section. They are as follows: Objective: According to Jonathan Ive, Senior Vice President of Apple’s industrial design, Apple’s goal is to make the employees at Apple excited about creating terrific products. Steve Jobs believed that if Apple made great products the revenue would come automatically (McEntegart, 2012). Plan of Action: Apple’ main philosophy is to continue to have creative ways of thinking, have a business model of direct sales, provide customer services, and provide Apple named products (Jinjin, 2013). The business is dedicated to bringing about the most excellent user involvement to its clients via its ingenious software, hardware, and service delivery. Apple’s plan of action advantage is that it has a par... ... middle of paper ... ...pple-and-its-financial-future-where-will-it-be-in-10-years/ Tyrsina, R. (2013). [Graph illustration of Apple’s revenue from 2007 to 2010]. Apple and its Financial Future: Where Will it be in 10 Years? Retrieved on November 20, 2013 from http://techpp.com/2011/03/29/apple-and-its-financial-future-where-will-it-be-in-10- years/ Wikinvest. (2010). [Apple’s operational, purchasing, assets, and other obligations ranging from one to five years.]. Off-Balance Sheet Arrangements and Contractual Obligations. Retrieved on November 22, 2013 from http://www.wikinvest.com/stock/Apple_ (AAPL)/Offbalance_Sheet_Arrangements_ Contractual_ Obligations Wikinvest. (2010). Off-Balance Sheet Arrangements and Contractual Obligations. Retrieved from http://www.wikinvest.com/stock/Apple_(AAPL)/Offbalance_Sheet_Arrangements_ Contractual_Obligations
Apple Computer Inc designs, manufactures, and markets personal computers and related personal computing and communication solutions. The return of Steve Jobs, the companies founder, as CEO has pulled the company’s stock price up 775-percent through his launch of innovative products such as the iMac computer line. On January 5, 2000, Jobs announced that he was dropping interim from his CEO title and taking the job full-time. With this news and Apple’s new products such as the iBook, a portable pc and Quick TV, an internet television access feature, Apple Computer is headed for success and is sure to increase their share in the computer market.
As stated before, Apple is a multi-billion dollar technology industry. The major competitors that Apple and its products is Microsoft and its Windows platform, as well as Google, and Samsung smartphones. All of these companies are in the top 10 global brands, according to Interbrand (2015). Comparing strengths of all companies, Apple has a solid financial support system and it is highly innovative because of the success of the products and the leadership of Steve Jobs, however what weakens Apple is the premium pricing of their products. Microsoft also has the solid financial support due to its leader, Bill Gates. Microsoft also has the dominance over the operating systems. Windows based applications are on almost all computers in the market
Innovation in apple sets high standards that make it difficult for other companies to compete with them. Throughout the recent years Apple has been showing a non-stop development in its innovation strategies, those innovation strategies involve remarkable new products and innovative business models. Apple has been continuously succeeding in providing consumers with what the senior engineering manager in apple Michael Lopp describes as “really good ideas wrapped in really good ideas” and by Looking at apple’s sales since it started releasing its unique products we see that it strongly agrees with this description. Apple’s innovation-friendly ecosystem focuses on manufacturing its own hardware rather than just buying it, and that is one of the most important features that made them who they are today in the market.
Apple rules the market because of concentrated development procedures and non specific organization technique which depends on Porter’s Model. Porter’s Model spotlights on three zones that is Cost leadership, differentiation, and focus. Due to a change in overall market and customer landscape the companies mission statement is constantly changing, it’s most recent is, “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad (Apple).”
To be able to identify a clear and concise plan for the expansion of sales for Apple 's iPhone 7, a thorough analysis of the company should be conducted. By highlighting the strengths and weaknesses of Apple Inc., and researching the opportunities available and threats to the company, strategies can be produced to find a solution.
In the late 1990s, with the release of Windows, Apple was placed on the right track. Apple released its’ 20th Anniversary Macintosh in 1997 which marked the beginning of Apple’s return (Crofford, 2011). The next year, Apple released the IMac, which was a highly received by the public. Apple reported over $80 billion in cash on its’ last Form 10-K filing with the Securities and Exchange Commission (Emerson, 2011). Today Apple produces several different products including IPhone...
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal
Apple probably has the world 's best PR department. This is especially significant during the development and launch of new products, because in any technological company cannot call such a resonance with their innovations. Before the first time users are be able to see the new Apple product and touch it, the company carefully plans all its public appearances and mentions of it, leak control, organizes briefings for journalists privileged, closed the presentation that can be accessed by invitation only, and finally, it organizes early testing for pre-screened positive-minded members of the media. Nothing ride, on the rare occasions when Apple does not control the initial promise, it corrects this by using its powers to bring elaborate answers
According to Ideavist (2011), due to the increase in competition as rival companies try to capture a piece of the market share leads businesses to employ various tactics to handle such situations. Some of the strategies used by companies and that Apple could find very constructive could include the below marketing strategies to be used for future success.
Apple’s SWOT analysis includes strengths that adhere to its great success; such strength is Apple’s marketing and advertising campaigns. Apple incorporates its products to portray a sleek, new, cool, the latest, and must-have technology image to its consumers. Our customer loyalty allows us to continue growing as a corporation and increases our already well-established brand awareness and reputation. Our strong financial performance is an outcome of our internal strengths highlighted. Apple’s weaknesses include, but are not limited to our patent infringements, defects that occur in our products, our declining market share, as well as our incompatibility with other os devices. Realizing our weaknesses allows us to develop goals that will correct these areas we currently need work on. The opportunities of our external environment; such as the ...
Marketing strategies are based on the 4 P’s or Product, Price, Promotion and Place or Distribution Channel. This section will briefly look into the Product and Pricing strategy of Apple and will illustrate various factors how it has been capable of sustaining competitive advantages in times of extreme competition.
Generally the goal to make products is focused on technology first, the need of such products is weighed after but Apple’s approach is not to serve the technology but it is to serve the need and engineers actually make them for themselves. It gives them a real feeling of need and a need to make the product. It has to be something that they personally couldn’t live
In 2007, after thirty years, the organization changed its name from Apple Computer to Apple Inc., this was a significant move because the organization became more independent, and it was no longer known as a vendor to Macintosh personal computer line (Yoffie & Slind, 2008). This strategic move paid off; a year and half later, Apple Inc.’s third quarter net profit of $1.07 billion on a $7.46 billion in revenue (Yoffie & Slind, 2008).
Apple has made reasonable management of its human and material resources since its innovational approach demands effective strategic allocation of its resources to the development and utilization of its productive resources to support its innovative investment strategies. Effective strategic control brings power to Apple’s decision-makers to allocate its resources to confront the technological, market, and competitive uncertainties which are inherent in the innovation
The Apple Inc. can use this tool when they want to increase their sales either by expanding product or by entering a new market. With the help of this grid, market expansion strategy is determined.