This will initially help Apple because the economy is doing better which will allow more consumers to purchase Apple products. Apple strives on technology advancements they are always looking to better their products so they can stay up to date just like many other companies. A new patent application from Apple improves the accuracy of the touch screen (Whitney). At first this may not seem like a big deal, but apple is a company that likes to perfect its products to create better value for their customers. That is how they get away with charging higher prices for their electronics because you can’t find something as refined somewhere else.
By looking at this financial I can conclude that Apple is at a very strong financial position compared to its rivals. Most of the ratios are better for Apple than for its rivals. My next part of Apple Analysis will be SWOT Analysis, which includes strengths, weaknesses, opportunities and threats. Apple has a lot of strengths. First of all their brand deserves to be mentioned.
The millennials are getting into employment and making income. The consumption habits of the Millennials are seen as centered towards technological products such as smart phones, iPhones, and tablets. The change in demographic is likely to cause a surge in the sales of the products from Apple Inc and thus more revenue. An investment in the company is thus seen as proper and in order (Benzinga Editorial, 2012). Investor Profile for Which Apple
The new Apple product development program reflects a process of constant improvement, always having a new product coming out every twelve months with better performance each time. For Apple to be the number one in Tablet sales they have to perform at high level of quality, with better improved Tablets each time. To do this they are always updating their research to make a better iPad for its consumers. Apple never holds back on new product sales of old established product lines (The Apple Case Study, 2013). Their own greatest problem is competing with itself, by selling more of their own Apple products, such as the iPhone having more sales then iPads (The Apple Case Study, 2013).
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod.
It dropped in December of 2008, but then took a steady climb up to $667.10 a share in September of 2012. Many people view Apple Inc. as a steady company--based on the stock charts, they are. Those who have invested in Apple Inc. stock are benefiting from it now. Apple Inc. has played an imperative role in not only America’s economy, but in our society as well. They have brought forward ground-breaking ideas for technology that shape how we interact and work today.
The company has also been able to beat its competitors due to the outstanding quality, efficiency and features present in their products. For example, the iPhone has numerous advantages that make it worth its price such as functionality of its-touch screen and the applications therein that make it the favorite over Research Motion’s Blackberry. Apple Inc. also introduces new products that enable it to gain a competitive edge and a larger market share despite rigorous competition from Google’s Android market. It has received accolade in terms of innovations in the PC world, software applications, operating systems for their products, media devices, mobile telephony as well as marketing and retail. The competitive strengths also originate from strategic leadership right from the top, Steve Jobs, who have overseen effective innovations in the PC market, iPods, the engineering of Apple softwares as well as effective global marketing strategies.
(Hoovers). In terms of Entry Barriers, Dells direct to consumers sales approach has increased their sales each year and they will soon be among their top competitors. Because of this approach, Dell has entered into this highly competitive market in a unique way. The biggest entry barrier that Dell has to face when entering into the technology industry is having customers gain the trust of company over the more popular veteran computer companies. Nevertheless many of competing companies use a range of different suppliers.
The profit margin is just how much of a company’s sales they keep as a profit. Apple’s profit margin is 21.67% while Microsoft has a 28% profit margin so Microsoft is accumulating more profit off each sale but their sales are lower. The return on shar... ... middle of paper ... ...equity depends on profitability, activity and financial leverage (Spiceland, Sepe, and Nelson 258-264). Apple, along with its competitors, are easily analyzed by investors and owners through the Dupont analysis and other activity ratios while also bringing to light the construed formulas Apple uses. Works Cited "Apple Inc." (2014): n.pag.
Apple’s external stakeholders are their customers and vendors. Apple is a superior brand and the brand’s average consumers are generally those with high income levels. The average household income for MAC owners are in excess of $98K annually according to Gaille (2015). Their targeted market are Millennials (18-34 years of age). Fifty-four percent of IPhone owners are repeat purchasers of the previous version.