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apple computer inc financial analysis
innovation and technology in apple
apple computer inc financial analysis
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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. Apples’ brand is one of the strongest brands in the world; in fact by the end of 2012 it was second to only Coca-Cola brand, which is highly remarkable. Apple is a brand that is known all over the world and its getting only better in that regard. Another strength of Apple is their product qualities. Their products, as mentioned before, are considered to be the best in quality in their market. They are comfortable and easy to use. On top of all, Apples prides itself that their products never “freeze”, which is a very popular problem in the technologies area. Their innovative abilities also should be mentioned in their strengths section, because Apple always come up with something new and very much revolutionize their products with it. The last thing I would like to mention is their pricing power. Obviously, because of the competitive market they are in, it is not as strong as some other giant companies have in other industries, but nevertheless it is still quite strong. The reason for that is the quality of their products. They are able to charge more for their products because they are so good. Also their customers that get very accustomed to their qualities and designs will pay more if it’s necessary.
When mentioning weaknesses of Apple the first thing that comes to mind is that they are very much dependent on the service providers because their biggest pr...
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...elop upgrade their operating systems so Apple can compete with Samsung in sheer technological characteristics.
Since passing of Steve Jobs, management team has not been doing a great job with coming up with unique ideas. This is something that needs to be addressed. As far as their funding needs, Apple is very financially stable and set and they don’t have funding needs that would require immediate attention.
Apple has a very good future strategy for their nearest future. I believe if they can succeed in expanding to new markets they will make huge profits. On top of that their products are as popular as ever, and it seems that this is not going to change anytime soon. They are very financially stable and their stock price seems to be underpriced at the moment. I believe that investors should buy Apple stock at its current price and under current market conditions.
Apple (from an interview with CEO Tim Cook): “We believe that we are on the face of the earth to make great products and that’s not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self-honesty to admit when we’re wrong and the courage to change. And I think regardless of who is in what job those values are so embedded in this company that Apple will do extremely well.”
Steve Jobs stepped down as the CEO of the company on August 24,2011. He gave Apple a series of successful products like ipod, iphone and ipad. But speculations rose as whether the company will continue to grow at the same pace when Tim Cook joined it. Some said that Apple is losing on innovation on new products or strategies while others criticized Cook on his way of working in the company. But, recent financial statements prove all of them wrong. Apple became the most profitable company in history last week. According to a report by guardian.com the tech giant made $18 billion in just three months by selling 34000 iphones from October to December. Apple now has $178 billion cash in the bank which gives
The main problem that Apple has had so far with its failures was its lack of innovative leadership. Very little growth was made during Jobs’ absence from Apple. It wasn’t until Jobs’ came back with the technology that he created with NeXT and Pixar, that ultimately helped turn Apple around.
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.
They have a succession of well-designed and innovative products; form the iMac to the Apple Watch. Apple as a company has built an empire of partnerships, retail outlet, services, etc. In doing so, they have become the most profitable company in history (EIU, 2015).
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:
Apple management must bridge the perceived innovation gap with some sort of product breakthrough. Otherwise, it is reasonable for the company to accept lower Street expectations built upon the premise that while the company remains an exceptional production, distribution and branded business, the days of unparalleled enterprising innovation and leadership may be ebbing.
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’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 ...
Computers and technology makes it easier for entrepreneurs to enter this market. Not only are major tech companies competing against one another, but they are also competing against little programmers that know how to code. In our time you will never know with certainty when a small group of engineers or computer scientists are going to create, “next big thing”. Apple has been able to have a competitive advantage over its competitor by creating the highest quality products and services. Some of Apple’s current competitors are Microsoft, Google, and Facebook, and a few other tech companies as well. Most people strongly people Apple is one of the stronger company its industry, but then again some other people have biased views. Financially, they are the strongest company in the world. Also people are always willing to pay a premium for their products because of their durability, quality, and prior experiences with Apple products. Apple is always on the look at for new innovative ideas and concept that are being produced by self-motivated entrepreneurs. They are always looking to hire bright minds and let them develop within the company. A lot of entrepreneurs, programmers and engineers do not have a problem working for Apple because of their well-established perks. Apple offers its employees of the best benefits in the world. They also fairly compensate their employees that work in the front-end store as
Apple Inc. was established by Steve Jobs and Steve Wozniak on April 1, 1976 as a computer designer, developer and seller company. However, the company shifted its focus from only personal computer to include other consumer electronics such as portable media player and mobile phone in 2007. Apple Inc becomes one of the most popular makers in its field since it seems that its popularity has increased according to a report on www.statista.com that Apple Inc’s products sales was generally increasing throughout the first quarter of 2006 to the first quarter of 2014. On the one hand, it has increased its revenue from about 14 billion US dollars to more than 170 billion US dollars in 2013. All in all, the company is highly successful corresponding to its products’ development and their sales growth in world’s market.
The Apple brand name is a household name, the brand value of Apple, Inc. improved to $13,724 million in 2008 from $11,037 million in 2007 (Datamonitor PLC, 2009). Apple is different from its competitors because it produces high quality products, its products are also unique and attractive and this has helped to increase its market shares. Since Apple is known globally, 54% profits come from foreign markets (Datamonitor PLC, 2009). Apple products are easy to use and carry around, majority of its products are light, small and very easy to carry around and it has a major advantage of product diversity, there is something for every one of all ages.
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