Apple's Market Capitalization

Market capitalization is a popular metric for assessing the size of a company as a representation of the investing public's notion of the company's worth. The figure is derived by simply multiplying the number of outstanding shares of the company's stock by the share price. (Slivka, 2010)

3.3 The learning Curve

Access to distribution channels complements Apple’s strategy. Unlike most competitors, Apple appears just now to be seeking a strong presence abroad. The U. S. A. accounts for 48% of its revenue while Europe contributes only 21% and Asia less than 10%.

While a mass marketer, Apple keeps the appeal of a luxury good. Innovation in marketing and the produces differentiation of Apple from its competitors has kept Apple at the top of the market shares for its products. Innovation is the key word at Apple. With a growing number of retail storefront stores, Apple is keeping all of its products in front of the consumer.

3.4 Five Forces Model

3.4.1 Threat of new entrants

In addition to these large firms, Apple is always in competition with new start-up firms. As indicated, numerous entrants in the various product lines have come and gone as Apple continues with its product lines. Economies of scale, Product Differentiation, Capital Requirements, switching cost, access to distribution channels, cost disadvantages, and government policies are all barriers to entry to this industry. In some cases, large well funded firms have purchased fledgling companies to allow that company to enter the product market. An example would be AT&T who bought Cingular reportedly to have access to the iPhone, as Cingular had negotiated a contract with Apple for exclusive rights to the new phone.

3.4.2 Bargaining power of suppl...

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...ion from stakeholders as well as competitors. Threats from fierce competitors for the market shares both nationally and globally will continue to plague currently successful companies. Since this is such a complex industry, the problems and threats are complex as well. Regulatory agencies are currently addressing security issues faced by users and providers. Microsoft and Apple have both been the targets of Regulatory scrutiny.

In order to sustain its position, Apple needs to continue to pursue differentiation in both the music products and the computer hardware-software arenas. They must address security vulnerabilities that hackers could exploit as they have the Windows operating system frequently.

Between 1990 and 1998, output per hour increased the most in the computer and office equipment industry, among the manufacturing industries measured by BLS.